Big changes coming for payments in South Africa
South Africa is revamping the management of its national payment system for the first time in nearly 30 years.
The South African Reserve Bank (SARB) announced the withdrawal of its recognition of the Payments Association of South Africa (PASA) as a payment system management body (PSMB).
“The step is part of ongoing reforms to modernise South Africa’s National Payments System (NPS), ensuring it remains safe, efficient, innovative and responsive to the needs of all users,” said the SARB
The SARB will assume direct control over important regulatory and oversight functions that have, until now, been overseen by PASA.
From Tuesday, 11 August, several of PASA’s regulatory and oversight responsibilities, along with affected staff and intellectual property, will be transferred to the Reserve Bank.
The remaining functions, which include those related to electronic funds transfers, DebiCheck, PayShap, and real-time clearing, will transition to PayInc by 2 September 2026.
The SARB stated that these changes aim to modernise the national payment system, enhancing its safety, resilience, and capacity to adapt to innovation.
PASA has operated as a self-regulatory body for the payments industry since 1996.
Under the new structure, the SARB will take on greater responsibility for regulation, authorisation, payment standards, and system-wide risk management.
PayInc will take on a larger operational role in managing key payment arrangements. The SARB assured consumers and businesses that they should not encounter any disruptions.
Card payments, electronic funds transfers (EFTs), debit orders, PayShap transactions, and ATM withdrawals will proceed as usual.
During the transition, PASA will continue to fulfil its current responsibilities to ensure continuity and minimise disruption.
“Stakeholders will continue to have opportunities to engage with the SARB on payment system matters through established consultation and engagement processes,” said SARB.
Nearly thirty years as the payment system for the NPS
PASA is recognised by the SARB as the designated Payment System Management Body (PSMB).
It organises, manages, and regulates its members’ activities within the NPS and provides “strategic, operational, and value-added” services.
Together with the SARB, PASA helps regulate and manage clearing and settlement systems.
PASA oversees several activities, including the authorisation of payment clearing house (PCH) system operators, system operators (SOs), and the registration of third-party payment providers (TPPPs).
It is also involved in the broader development of South Africa’s payment system arrangements.
PASA’s members primarily consist of banks, branches of foreign banks, mutual banks, and other designated participants under the National Payment System Act 78 of 1998.
The functions transitioning to the SARB will include regulation and authorisation, certain payment clearing house (PCH) arrangements, card interoperability, and high-value PCH activities.
The SARB will manage standards, including MyStandards, and oversee ecosystem-wide risk and resilience management.
These activities encompass the development of rules, criteria, governance structures, agreements, and participant authorisation.
The SARB will also publish a list of registered Third Party Payment Providers (TPPPs) and authorised PCH System Operators (SOs) on its website.
The global payments industry uses the MyStandards platform to publish, maintain, and test payment messaging standards and implementation guidelines.
This, according to the SARB, promotes interoperability across payment systems and participants at both national and global levels.
The SARB said it will coordinate the management of these standards in South Africa, which includes communicating updates to industry participants, overseeing industry readiness and testing activities, and supporting the implementation of new or revised requirements.
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