South Africa is preparing for one of the most notable shifts in its financial system in decades. The South African Reserve Bank (SARB) plans to open the National Payments System (NPS) to non-banks by 2026, ending commercial banks’ exclusive grip on clearing and settlement.
The move is part of the central bank’s Vision 2025 strategy, focusing on competition, efficiency, innovation, and financial inclusion.
The reform seems like a regulatory adjustment to allow fintechs and mobile money operators such as Yoco, Ozow, MTN’s MoMo, and Vodacom’s VodaPay to compete more directly with traditional banks.
However, a closer look reveals something more profound: this shift aligns South Africa’s financial infrastructure with the same decentralisation principles that underpin cryptocurrency and blockchain technology.
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From bank monopoly to open access
At present, non-bank providers must partner with a commercial bank to clear payments, which creates cost inefficiencies and slows down innovation.
By introducing a new payment-institution license modelled on the European Union’s PSD2 framework, SARB effectively gives fintechs direct access to the NPS.
This mirrors the peer-to-peer ethos of blockchain, where participants can transact directly without an intermediary.
In fact, the NPS reform could be seen as a state-regulated version of what Bitcoin and Ethereum already offer on open networks: a system where trust is guaranteed not by a single gatekeeper but by transparent rules and robust oversight.
Also, one of the striking aspects of SARB’s draft rules is the requirement that licensed entities hold client funds in segregated accounts and maintain a 100 per cent liquidity buffer for e-money issuance.
These safeguards echo the reserve-backing model that governs stablecoins like USDC or Tether.
This means South Africa could soon have the regulatory infrastructure to legitimise rand-backed stablecoins.
A licensed fintech might issue tokens fully backed by rand deposits at approved banks, combining the efficiency of blockchain with the trust of local regulation.
Such a development would give South Africans a safe digital currency alternative and position the country as a leader in regulated stablecoin innovation on the continent.
Visa and Mastercard have long dominated digital transactions in South Africa, but blockchain payment networks offer a cheaper and faster alternative for international settlements.
The Pan-African Payments and Settlement System (PAPSS), launched in 2022, already enables cross-border transactions in local currencies but lacks deep integration with non-bank providers.
By opening the NPS, SARB creates room for blockchain-enabled cross-border services. For example, a remittance startup could use stablecoins or crypto rails for international transfers and tap into South Africa’s payment system for instant local payouts.
This hybrid model—crypto abroad, regulated settlement at home—could reduce costs and expand financial inclusion across the region.
SARB embraces blockchain shift
SARB has been experimenting with central bank digital currencies (CBDCs) through Project Khokha, which tested blockchain-based settlement systems.
If a digital rand is eventually launched, non-banks with NPS access will be crucial for distributing and scaling its use among consumers and merchants.
As the SARB notes, “Payment systems must be capable of meeting the evolving needs of South Africans.”
Opening the NPS to fintechs and telcos ensures that a CBDC would not remain trapped within the banking sector but could reach the broader population through digital wallets and mobile platforms.