South African banks could lose their grip on fintech payments
- SARB plans to publish a new authorisation framework by November 2026 allowing non-banks to issue electronic money and process payments directly.
- Lesaka Technologies aims to acquire Bank Zero to reduce dependency on bank sponsorship and improve its value proposition.
- Shoprite earned R548 million in commissions from money transfers and payments in the year ended June 2026, highlighting the revenue potential for non-banking entities.
The proposed reforms by SARB represent a significant shift in the South African payment landscape, potentially empowering fintechs and enhancing competition. However, the success of these changes will depend on how well these companies can manage the new operational costs and whether they choose to pass savings onto consumers. This dynamic could reshape the financial services sector in South Africa, making it crucial for stakeholders to adapt quickly.
