The Payments Revolution: How SARB’s Big Shift Could End the Banking Oligopoly

A seismic shift is coming to South Africa’s financial landscape. In 2026, the South African Reserve Bank (SARB) is set to rip open the gates of the country’s National Payments System (NPS)the critical backbone that clears every electronic transactionto players without a banking licence. This move promises to turbocharge financial inclusion, unleash a wave of fintech innovation, and present the most formidable challenge yet to the traditional “big four” banks.

For decades, the NPS has been an exclusive club. Only licensed banks like Absa, FNB, Nedbank, and Standard Bank could participate directly. Fintech companies and retailers had to piggyback on these incumbents at a cost, stifling competition and keeping fees high. That’s about to change.

“As Easy as Sending a Text Message”

Driven by its ambitious Payments Ecosystem Modernisation (PEM) programme, the SARB aims to make digital payments seamless and universal. “For the ordinary person on the street, it should be as easy as sending a text message,” says Arif Ismail, head of the NPS department. The goal isn’t to kill cash, but to give consumers far more choice.

To make this a reality, the National Payment System Amendment Bill must be passed, with a draft expected soon. In the interim, an Exemption Notice will allow non-banks to offer key services like e-money issuance, money remittance, and real-time payments (including PayShap) without needing a costly banking licence.

Fintechs and Telcos Ready to Pounce

This is the opportunity the fintech sector has been waiting for. The Fintech Association of South Africa argues that “mobile-first” firms are perfectly positioned to reach the millions who have phones but lack easy access to bank branches. Integrating non-bank wallets and apps directly into the national grid will “bring a huge population of currently excluded people into the digital payments loop.”

The real threat to traditional banks comes from giant, trusted brands with massive existing customer bases. Companies like MTN and Shopritewhich currently rely on partner banks for their Money Market and MoMo servicesplan to offer payment and money-holding services directly once the NPS opens. Imagine buying airtime, groceries, and sending money to family, all within one app, without ever touching a traditional bank account.

A Long-Overdue Shake-Up

The big banks have already felt pressure from agile digital entrants like TymeBank, Discovery Bank, and Bank Zero. But even these disruptors had to navigate the arduous, multi-million-rand banking licence process. The new rules will lower the barrier to entry dramatically, forcing every player to compete on innovation, convenience, and cost.

The message is clear: the SARB is deliberately dismantling the banking oligopoly to foster a more inclusive, competitive, and modern financial ecosystem. For consumers, it means cheaper, faster, and more accessible services. For the old guard, it’s a wake-up call: adapt or be sidelined in the new digital economy. The payments revolution has a start date2026and the countdown has begun.

{Source: Mybroadband}

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