South Africa’s Payment Shake-Up: What New Rules Mean for Your Digital Wallet

A sweeping update from SARB could redraw the rules for digital finance. Here’s what’s changing—and why it matters to everyday South Africans.

If you’ve used a digital wallet to send money to a friend, buy groceries, or even top up airtime, you’re not alone. In South Africa, fintech innovation has exploded,  especially as bank fees remain high and informal financial tools gain trust. But now, the South African Reserve Bank (SARB) is stepping in to bring order to the digital payments free-for-all.

New rules, new players: The rise of non-bank payments

The SARB is proposing two major regulatory documents that could fundamentally shift how payments are managed in South Africa. While these proposals are still in draft form, the implications are anything but small.

The first draft—called the Payment Activities Exemption Notice—seeks to clarify when digital wallet providers are not operating like banks, sparing them from bank licensing if they meet specific criteria. The second draft—simply called the Directive—lays out a comprehensive framework for how payment services should be governed moving forward.

These documents are SARB’s answer to a fast-changing fintech world. For years, non-bank entities like mobile money platforms and app-based wallets have operated in somewhat of a grey zone—convenient for users, but unclear from a legal standpoint. Now, SARB wants that ambiguity gone.

The local landscape: What this means for SA businesses

Legal experts are urging local businesses—from retailers to online platforms with payment functions—to sit up and pay attention. Lerato Lamola, a partner at top law firm Webber Wentzel, notes that the definitions in the drafts are broad. Really broad.

“This isn’t just about banks anymore,” Lamola warns. “If your business handles money in a way that looks like a payment activity especially if you’re storing or transferring value, you might fall under these new rules.”

Activities flagged by the draft rules include issuing payment cards, operating e-wallets, enabling fast payments, and even accepting money on behalf of others (think ride-hailing apps or online marketplaces). And here’s the kicker: these companies might soon need to register, meet new governance standards, hold minimum capital, and safeguard client funds like a licensed financial institution.

Why this matters: A tighter grip or a safer system?

Some in the industry view the changes as overdue. South Africa’s National Payment System Act hasn’t kept pace with how quickly tech has outgrown traditional banking. Updating the system helps align SA’s fintech scene with global best practices, which is crucial for cross-border compatibility.

But there are concerns. “We’ve seen how broad regulatory strokes can unintentionally capture smaller players,” says fintech commentator Simphiwe Zulu. “My worry is that local start-ups—especially black-owned ones—could be pushed out by heavy compliance costs before they even scale.”

Others are cautiously optimistic. On social media, some users have applauded SARB’s emphasis on anti-money laundering compliance and fit and proper requirements for executives. In a country with rising cybercrime and fraud, better oversight might restore trust in online transactions.

The backstory: From crisis to coordination

Behind SARB’s urgency is a global shift. Countries like the UK and Kenya have already overhauled their payments regulation to better supervise fintech innovations like mobile wallets and instant transfers. South Africa, keen to integrate more deeply into the global financial network, can’t afford to lag behind.

Moreover, the COVID-19 pandemic showed just how central mobile payments have become in everyday life. As millions went cashless out of necessity, fintechs stepped in—and regulation fell behind.

What comes next?

The window for public comment closed in April 2025, but this is just the beginning. SARB has committed to a broader overhaul of the entire National Payment System. The legal amendments could take time, but interim policies will fill the gap.

Lamola suggests that businesses not only review the drafts but prepare for a more formal licensing process ahead. “We’re entering a phase where fintech regulation in South Africa will start looking a lot more like financial regulation,” he says.

Don’t wait until it’s law

If you’re running an app, platform, or service that moves money even in small ways it’s time to get your house in order. These proposals are more than technical guidelines. They’re a sign that South Africa’s fintech playground is maturing and the rules of the game are changing fast.

In the end, SARB’s reforms could strike a balance between innovation and accountability. But getting there will require clarity, consultation, and above all compliance.

{Source: BusinessTech}

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