South Africa’s Payment Reform: What Merchants Should Prepare For

South Africa’s central bank plans to let approved non-banks and fintechs access the country’s payment system without a sponsor bank. That could change how payment providers compete, what they pay to move money, and what merchants are charged.

The change is not in force yet. On October 20, South African Reserve Bank governor Lesetja Kganyago said the bank plans to publish an authorisation framework by the end of November 2026. The proposal could create new choices for providers, but it does not mean businesses should expect lower fees automatically.

For business owners, the practical question is what happens to the cost and reliability of getting paid. Here is what the proposal could mean, and what merchants can do now. The details are reported by TechCabal’s coverage of the planned payment reforms.

What the proposed change would do

Today, a fintech can build its own app, serve customers and help businesses accept payments, yet still depend on a bank to move money through the financial system. The bank provides access and can charge the fintech for sponsorship. The provider may also miss out on interest income from money held through that arrangement.

The proposed framework would allow approved non-banks to issue electronic money, process merchant payments, and access clearing and settlement systems directly. These systems handle payment instructions and settle money between institutions. Direct access would remove the requirement to use a sponsor bank for that access, but it would not remove the need to meet regulatory requirements or operate the service.

That distinction matters. A provider could choose to keep working with a bank, or take on more of the work and cost itself. The reform would create an option, not make every provider independent overnight.

Lesaka Technologies illustrates why this choice matters. In its September 2025 earnings call, executive chairman Ali Mazanderani said bank sponsorship involved direct fees and foregone interest or float revenue. Lesaka was seeking to reduce some of its reliance on third parties through its planned acquisition of Bank Zero. The deal, first announced in June 2025, was still awaiting regulatory approvals in September 2026, with completion expected in December.

Why merchants should pay attention

Payment costs can affect a merchant’s margins, the price customers see, and the methods a business chooses to offer. If a provider’s costs fall, it could keep the savings, invest in its service, or pass some savings on through lower charges. The reform alone does not decide which choice it will make.

A provider’s published pricing is useful context, but it is not a promise of future prices. Ozow said it charges merchants 1.5% for its Pay by Bank and PayShap Request services, with a R1 minimum per transaction. It also charges R3 per payout or refund. Ozow does not charge the customer making the payment, though their bank may charge them. The merchant and customer can therefore face different costs for the same payment.

The wider market also includes businesses outside banking. Shoprite reported R334 million in money transfer commissions in the year ended June 2026, up from R290 million the previous year. It earned another R214 million from handling payments to third-party accounts and insurers. Together, the two income streams were R548 million, about 0.2% of its total revenue that year.

Those figures show that payment services can be a revenue stream as well as a cost of selling. But Shoprite’s Money Market Account still depends on African Bank for banking services. Its 4.3 million users as of June 2026 are part of a partnership in which each party brings different capabilities. Direct access might change some provider relationships; it does not make every partnership unnecessary.

What could change, and what might not

If a provider gains direct access, it may retain income it previously paid to a bank, replace some services it bought, or compete by reducing its fees. It will also need to handle the cost and responsibilities of connecting to and operating within the payment system. A cheaper arrangement for the provider is not automatically a cheaper arrangement for your business.

Nor should merchants assume every payment method will become free. Some banks already offer free transfers for certain transactions. GoTyme Bank said it charges nothing for PayShap transfers of up to R5,000. That is an example of a specific bank’s stated offer, not evidence that all providers charge the same way or that future prices will follow one pattern.

For businesses, the important change may be more room to compare providers and negotiate. If providers have different operating models, they may present different fees, settlement arrangements, payment options and support. A business should compare the full service, not only the headline transaction rate.

How to prepare without overreacting

You do not need to replace your payment provider simply because the framework is planned. First, understand your current arrangement. Review statements, contracts and provider pricing so you know what you pay for transactions, payouts, refunds and any other relevant service.

Then check how payment performance affects your own operation. Note which payment methods customers use, how staff reconcile transactions, and what happens when a payment is delayed or fails. This gives you a practical basis for comparing alternatives later, instead of relying on a provider’s general claims.

When a provider discusses future savings, ask what the proposal means for your specific account and pricing. Ask whether the quoted amount includes all applicable charges, whether customer bank charges may still apply, and whether the provider expects any change to payout or refund costs. Request the terms in writing and review them before changing your checkout or customer instructions.

If you sell online, make sure your checkout can explain payment methods clearly on a phone. A well-designed [online store]( /solutions/websites/online-store) can make payment choices easier to understand, while an e-commerce growth service can help you review how the buying journey supports your business. For a broader review of what customers encounter on your site, use the website audit tool.

What to do next

1. Record your current costs. List transaction, payout and refund charges, plus any other payment-related costs shown in your agreement or statements.
2. Map your payment journey. Identify the methods customers use and how your team tracks payments, refunds and outstanding orders.
3. Ask providers specific questions. Find out which charges apply to your business, what could change, and whether customers may still face bank charges.
4. Compare the whole service. Consider fees alongside payment options, payout arrangements, support and the work required to switch.
5. Watch for the framework details. SARB plans to publish its authorisation framework by the end of November 2026. Wait for the actual requirements before treating direct access as available to a provider.

The proposed reform could alter how fintechs and banks share the work and income behind payments. For merchants, the useful response is neither to assume prices will fall nor to ignore the change. Know your current costs, ask clear questions, and compare real offers when providers can explain what the new rules mean for their services.