South Africa Opens National Payment System to Non-Bank PSPs Under PEM Reform

The South African Reserve Bank is opening the National Payment System to non-bank payment service providers under its Payments Ecosystem Modernisation programme. First PSP licences under the new framework are expected in early 2026.

PEM Programme

SARB describes Payments Ecosystem Modernisation as its flagship initiative to allow non-bank entities to participate in payment activities. The programme establishes a formal authorisation pathway for non-bank PSPs to apply for direct participation in the NPS, which has historically been restricted to licensed banks.

The reform creates multiple categories of authorised payment activity for non-bank entities. PSPs seeking authorisation as e-money issuers will need to meet capital, liquidity, and operational requirements set by SARB.

Implications for PayShap

Opening the NPS to non-bank participants creates a pathway for PayShap - South Africa's instant payment service - to extend beyond bank-only participation. Non-bank PSPs with NPS authorisation could integrate PayShap into third-party wallets and applications, broadening the distribution of instant payments.

PayShap currently operates through bank participants connected to BankservAfrica's clearing infrastructure. Direct non-bank access to the NPS would change this model.

What to Watch

The licensing timeline and scope of PSP authorisation categories will determine the practical impact of the reform. How quickly SARB processes applications and how many non-bank providers qualify will shape whether 2026 delivers meaningful new participation in South Africa's payment infrastructure.