Article

The Expanding Role of Non-banks in South Africa

NPS Act Review: Unpacking Recommendations 13

This article specifically focuses on Recommendation 13 which looks at expanding the retail payment services /activities allowed by non-bank participants (including e-money and mobile money) and the direct participation of non-banks in clearing and settlement.

As the payments industry moves towards the digital age and becomes increasingly innovative, and financial technology becomes more advanced, the development of new payment methods, technologies, services, risks, participants and ‘payment systems’ have become increasingly prominent and a challenge to the traditional payments regulatory landscape. It follows that the accompanying regulatory and legislative framework needs to be flexible and adaptable to these developments and provide an enabling environment which fosters innovation.

The article unpacks the following topics:

South African Payments Landscape

  • Payments Landscape Overview
  • Non-bank Payments Landscape

o   Non-bank Permitted Payment Activities

o   Mobile Money

o   Clearing and Settlement

Unpacking Recommendation 13

  • Development of Narrow Activity-based Licenses
  • Changes in Mobile Money Regulation
  • Non-bank Inclusion in Clearing and Settlement Activities

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