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South Africa’s financial ecosystem is entering a new phase with the development of South Africa’s NPS fintech. The South African Reserve Bank (SARB) has announced that non-bank fintechs can now access the National Payment System. This privilege, once reserved for traditional banks, falls under its Payments Ecosystem Modernisation (PEM) framework.
It is noteworthy that the National Payment System (NPS) remains the backbone of the country’s financial infrastructure. Therefore, South Africa’s fintech NPS covers clearing, settlement, and value exchange between payers and beneficiaries in the economy. By implication, the opening of the system aligns SARB with its Vision 2025 modernisation agenda.
Previously, only licensed banks could participate in the NPS. However, mobile operators, wallet-based platforms, and other fintech players now have a pathway into the system. Strategically, TechPolyp suggests this development as a tactical moment for South Africa’s fintech NPS inclusion and financial innovation.
South Africa’s Fintech NPS: Balancing Innovation and Protection
Furthermore, SARB has acknowledged that fintechs introduce new risks. It has now designed proportional entry requirements, ensuring regulation matches each fintech’s risk profile. In addition, South Africa’s fintech NPS prevents fintechs from carrying the same heavy compliance burden as banks.
Similarly, a draft directive issued in early 2025 outlines specific obligations. These include, but are not limited to, governance rules, adequate capital levels, risk management processes, and robust data protections. In addition, key personnel must meet fit-and-proper standards, while client funds must remain segregated.
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Fintechs are also under compulsion to adopt strong anti-money laundering controls and clear informed-consent protocols for customers. Notably, cybersecurity systems, incident reporting, and transparency measures form part of the regulatory expectations. TechPolyp suggests that these safeguards protect consumers and preserve the integrity of the financial system under the umbrella of South Africa’s fintech NPS.
The Draft Exemption Notice under the Banks Act further clarifies boundaries in the future. It defines which payment activities, such as e-wallet issuance and faster payments, are allowed for fintechs. This ensures they can operate without being classified as full banking institutions.
Above all, through applying the proportionality principle, SARB seeks to encourage growth without compromising trust. In other words, Fintechs can extend services to underserved and unbanked communities while maintaining accountability. South Africa’s fintech reform, ultimately, stands as a milestone that blends innovation with security.
