No data available for the deliverable: Real-time, low-cost payment platform (SARB project Khokha) with the potential to boost financial inclusion.
No data available for the deliverable: Real-time, low-cost payment platform (SARB project Khokha) with the potential to boost financial inclusion.
No data available for the deliverable: Real-time, low-cost payment platform (SARB project Khokha) with the potential to boost financial inclusion.
No data available for the deliverable: Real-time, low-cost payment platform (SARB project Khokha) with the potential to boost financial inclusion.
No data available for the deliverable: Real-time, low-cost payment platform (SARB project Khokha) with the potential to boost financial inclusion.
No data available for the deliverable: Real-time, low-cost payment platform (SARB project Khokha) with the potential to boost financial inclusion.
Summary
The reform involves amendments to the National Payment System (NPS) Act, expanding non-bank access, supporting digital payments and enhancing security and competition. To succeed, the reform requires partnerships with telecommunication companies. Technical specs were published in December 2024 and eight banks are participating in a digital pilot programme. SARB’s Project Khokha, which is exploring digital ledger technology, should deliver a low-cost instant payment platform, boosting inclusion for the unbanked and digitising retail payments. Real-time retail payments system operational is and the full launch of Project Khokha’s platform was expected by end 2025. The financial inclusion pilot is expanding.
Is it working?
The reform is making strong progress, with broad industry support and clear government commitment. The amended NPS Act was expected to be tabled in Parliament in 2025. The system is being adopted by major banks, with the pilot broadening to SMEs and consumers.
Actions
Digital payments pilots are under way and regulatory frameworks for new payment models are being developed.
Are there plans?
The draft amendments have been published, with industry feedback and policy integration ongoing, resulting in rollout plans, sector pilot feedback and audit schedules for system performance.
Is it on the agenda?
The FSCA, SARB, and National Treasury have prioritised this reform, with a draft bill under consultation.
Goals
To update and future-proof the legal and regulatory framework for payments, supporting digital innovation and financial inclusion. The objective is to modernise payment systems, financial inclusion and real-time payments.
References
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)
Summary
The 2026 Budget frames payments reform under the Payments Ecosystem Modernisation Programme, which introduces the most significant payment system changes in three decades over the next three years. The programme combines: (i) establishing a national payments utility (NPU) by converting PayInc/BankservAfrica (now majority‑owned by SARB) into open-shared infrastructure for high‑value and retail payments; and (ii) legal and policy reforms to move to an activity‑based model and new licensing/authorisation framework that will allow non‑bank entities (fintechs, e‑money issuers, acquirers) to participate directly in payment activities under proportionate regulation. The 2026 Budget confirms that implementation of this activity‑based model is scheduled to begin in the second half of 2026, supported by an overhauled NPS Act framework.
View DetailsIs it working?
The 2026 Budget shifts payments reform from design to execution: SARB’s majority ownership of PayInc and the definition of the NPU mandate indicate concrete institutional change and the Budget pins down a start date (H2 2026) for the activity‑based licensing framework. The remaining test is timely passage of the required NPS legislative package, effective coordination among SARB, National Treasury and market participants and careful calibration so that new requirements enable competition and innovation without imposing disproportionate burdens on smaller fintechs and non‑bank providers.
Actions
As of the 2026 Budget, government has: (i) concluded the transaction in which SARB acquired a majority stake in PayInc/BankservAfrica on 11 November 2025, to be transitioned into the NPU; (ii) launched the Payments Ecosystem Modernisation Programme with a three‑year implementation horizon; and (iii) set a clear policy commitment to adopt an activity‑based regulatory model and new licensing framework, with the second half of 2026 identified as the start date for implementation. These actions operationalise earlier policy work (NPS Act review, Vision 2025) and move the focus squarely into execution and legislative change.
Are there plans?
Government plans to: complete the legal drafting needed to implement the activity‑based licensing model; bring the revised NPS bill and associated regulations to Parliament; operationalise the NPU structure following SARB’s November 2025 acquisition of a majority stake in PayInc; and roll out the new activity‑based model from H2 2026, with transitional arrangements for incumbent banks, PASA members and non‑bank payment providers. The legal work will also dovetail with open‑finance, fintech and cross‑border payments reforms flagged in the 2026 budget.
Is it on the agenda?
The 2026 Budget identifies modernising the NPS as a priority reform to reduce payment costs and improve safety and efficiency, highlighting its role in enabling faster, cheaper and more inclusive domestic and cross‑border payments, including AfCFTA‑aligned regional flows. It positions the NPS legal overhaul and NPU creation as central to National Treasury and SARB’s financial‑sector reform agenda for 2026–2028.
Goals
Modernise the legal and regulatory framework for South Africa’s national payments system to support cheaper, faster and safer payments, broaden non‑bank participation and align the law with the Payments Ecosystem Modernisation Programme and activity‑based regulation.
References
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)
Summary
The National Payments System (NPS) governs how money moves electronically in South Africa. The NPS Act amendments created the legal framework for PayShap, a real-time interbank payment platform launched in 2023 that allows individuals and businesses to make instant electronic payments using a mobile number or South African ID number - without needing a bank account number. PayShap was developed by BankservAfrica in collaboration with South Africa's major banks. It is now operational and expanding to small and medium enterprises (SMEs) and new use cases. PayShap is fully operational. All major South African banks are live on the platform. Payments can be made in real time using a mobile number or South African ID number, without needing a bank account number. The platform is expanding to SMEs and new payment use cases. SARB and FSCA confirm strong uptake and a positive impact on financial inclusion.
View DetailsIs it working?
PayShap is performing well against its financial inclusion objectives. Adoption has grown steadily since launch in 2023 and is particularly significant for lower-income consumers and small businesses which previously relied on expensive electronic transfers or cash. Further improvement in interoperability and expanded use cases will determine the platform's long-term impact.
Actions
PayShap is live with all major banks connected. Strong uptake reported. Expansion to SMEs under way. Interoperability with other payment channels (QR codes, USSD) being developed.
Are there plans?
Expanded SME access, interoperability compliance and further use case development are planned. SARB and FSCA Project Khokha underpins the payments innovation strategy. Further platforms for SME digital payment enablement, QR code interoperability and PayShap API access are in development.
Is it on the agenda?
Yes. PayShap is a Cabinet priority for the digital finance strategy, regularly updated in Parliament's financial sector reviews.
Goals
Modernise the legal and regulatory framework for South Africa’s national payments system to support cheaper, faster and safer payments, broaden non‑bank participation and align the law with the Payments Ecosystem Modernisation (PEM) programme and activity‑based regulation.
References
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)
Summary
The National Payments System (NPS) governs how money moves electronically in South Africa. The NPS Act amendments created the legal framework for PayShap, a real-time interbank payment platform launched in 2023 that allows individuals and businesses to make instant electronic payments using a mobile number or South African ID number - without needing a bank account number. PayShap was developed by BankservAfrica in collaboration with South Africa's major banks. It is now operational and expanding to small and medium enterprises (SMEs) and new use cases. PayShap is fully operational. All major South African banks are live on the platform. Payments can be made in real time using a mobile number or South African ID number, without needing a bank account number. The platform is expanding to SMEs and new payment use cases. SARB and FSCA confirm strong uptake and a positive impact on financial inclusion.
View DetailsIs it working?
PayShap is performing well against its financial inclusion objectives. Adoption has grown steadily since launch in 2023 and is particularly significant for lower-income consumers and small businesses which previously relied on expensive electronic transfers or cash. Further improvement in interoperability and expanded use cases will determine the platform's long-term impact.
Actions
PayShap is live with all major banks connected. Strong uptake reported. Expansion to SMEs under way. Interoperability with other payment channels (QR codes, USSD) being developed.
Are there plans?
Expanded SME access, interoperability compliance and further use case development are planned. SARB and FSCA Project Khokha underpins the payments innovation strategy. Further platforms for SME digital payment enablement, QR code interoperability and PayShap API access are in development.
Is it on the agenda?
Yes. PayShap is a Cabinet priority for the digital finance strategy, regularly updated in Parliament's financial sector reviews.
Goals
Modernise the legal and regulatory framework for South Africa’s national payments system to support cheaper, faster and safer payments, broaden non‑bank participation and align the law with the Payments Ecosystem Modernisation (PEM) programme and activity‑based regulation.
References
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)