South Africa Opens Payment System to Non-Banks in Major Payments Reform
South Africa is preparing to give non-bank payment providers greater direct access to the country's payment infrastructure, a reform that could eventually create new options for how businesses send and receive payments.
By Accounts Payable Professionals Group
October 22, 2026
South Africa is moving ahead with a major overhaul of its national payment system that will expand participation beyond traditional banks.
Under the South African Reserve Bank's Payments Ecosystem Modernisation (PEM) Programme, non-bank organizations such as fintech companies, retailers and other payment service providers will gain greater access to the country's payment infrastructure.
The changes are intended to increase competition, encourage innovation and make South Africa's payment system more efficient and accessible.
For accounts payable teams, the reform is worth watching because expanding the number of organizations able to participate directly in payment infrastructure could eventually increase the number of payment options available to businesses.
This is a developing payment-system reform, not an immediate change to AP procedures. Businesses should continue using their existing approved banking and payment channels while monitoring which non-bank providers become authorized participants as the new framework is implemented.
Moving Beyond a Bank-Only Model
South Africa's existing payment system includes banks, clearing participants, system operators and third-party payment providers. Direct participation in important parts of the infrastructure, however, has historically been centered heavily on banks.
The Reserve Bank's modernization programme is designed to broaden that structure.
A key part of the plan is the development of a national payments utility that will provide shared digital payment infrastructure to a broader range of participants, including non-bank financial service providers.
The Reserve Bank also plans an activity-based regulatory model that will allow qualifying non-bank organizations to perform payment activities and access clearing and settlement systems directly without relying on bank sponsorship.
What Changes for Accounts Payable?
For most AP departments, nothing changes immediately.
Companies should not interpret the reform as meaning that any fintech, retailer or telecom company can now replace a bank for corporate payments. Providers will still need to meet regulatory, licensing, operational and security requirements before participating under the new framework.
The longer-term implications could be more significant.
Greater competition among payment providers could eventually give businesses additional choices for supplier payments, improve payment speed and put pressure on transaction costs. It may also create new integration opportunities between payment providers, accounting systems and AP platforms.
That would make provider governance increasingly important. AP and treasury teams evaluating new payment channels will need to consider authorization status, security, fraud controls, reconciliation capabilities, payment visibility and how each provider integrates with existing financial systems.
A Reform to Watch Into 2027
The modernization effort will continue in stages. Initial non-bank participation is expected during 2027 as South Africa develops the regulatory framework and supporting payment infrastructure.
That makes the reform something AP leaders should monitor rather than something that requires an immediate process change.
The larger question is whether opening payment infrastructure to more regulated providers will ultimately give businesses faster, less expensive and more flexible ways to pay suppliers.
If that happens, South Africa could provide an important example of how opening national payment systems to non-bank participants changes the corporate payments landscape.
If regulated non-bank providers could connect directly to payment infrastructure, would your AP department consider using them for supplier payments, or would you prefer to keep payments with traditional banks?
South African Reserve Bank, Payments Ecosystem Modernisation Programme
South African Reserve Bank, Payments and Settlements
Reuters, October 16, 2026
