The South African Reserve Bank is moving to restructure the national payment ecosystem by opening access to non-bank payment providers and introducing a shared white-label ATM network, as announced by Governor Lesetja Kganyago at a central bank conference on Tuesday.
The Bottom Line
- Non-Bank Access: The Reserve Bank aims to publish a new exemption notice and authorisation framework by the end of November 2026, allowing non-bank payment providers to enter the market without needing full banking licences.
- Cash Infrastructure Overhaul: Under the Cash Smart strategy, a National Cash Utility is slated for March 2027, followed by a pilot of generic, white-label ATMs next January and a countrywide rollout by late 2027.
- Digital Platform Stagnation: Real-time payment platform PayShap has crossed one billion transactions worth more than R1 trillion since 2023, but volume remains below 40% of electronic funds transfer credit volumes due to fragmented bank pricing and low public awareness.
Breaking the Banking Stranglehold on Payments
The entry of fintechs and payment specialists into South Africa’s financial infrastructure will drive competition and reduce transaction costs, according to Reserve Bank Governor Lesetja Kganyago. Speaking at the central bank’s payment conference, Kganyago noted that high payment transaction fees slow the macroeconomy just as significantly as failures in network utilities like electricity and transport ports.
To integrate new operators, the central bank has proposed a new exemption notice and authorisation framework. Because non-bank providers do not engage in maturity transformation—borrowing short-term deposits to issue long-term loans—they do not require the same rigorous regulatory safeguards as traditional retail lenders. IOL Business reported that the proposed framework will be published by the end of November 2026, setting baseline rules for governance, operational resilience, and customer fund segregation.
South Africa’s Reserve Bank is pushing for a shared ATM network that would work for customers of different banks.Officials set out the idea on 16 October, with a pilot meant to start in January 2027. The machines would handle withdrawals, deposits and balance checks, and…
Restructuring Physical Cash and ATM Networks
Despite rising digital adoption, cash accounts for approximately 66% of all consumer transactions by volume in South Africa, Business Day reported. Low-income earners and rural populations remain heavily reliant on cash for daily transport, such as minibus taxis. However, accessing physical cash is expensive due to sparse ATM infrastructure in townships and rural districts.
Data from MyBroadband indicates a 12% decline in automated teller machines across South Africa’s five largest banks—Absa, Capitec, First National Bank, Nedbank, and Standard Bank—between 2020 and 2025. To counteract this rationalisation of bank-owned hardware, the Reserve Bank’s Cash Smart strategy will establish a National Cash Utility by March 2027, paving the way for unbranded, white-label ATMs.
South Africa’s🇿🇦 Reserve Bank plans to launch a shared ATM network, with a pilot expected in January 2027. The machines would allow customers to withdraw and deposit cash and check balances, with smaller transactions potentially free. Final fees and agreements with banks remain… pic.twitter.com/AAuz1x0e04
| Initiative | Timeline | Strategic Objective |
|---|---|---|
| Non-Bank Framework | End-November 2026 | Open payment systems to fintechs without full banking licences. |
| National Cash Utility | March 2027 | Streamline physical cash infrastructure and shared networks. |
| White-Label ATM Pilot | January 2027 | Test generic ATMs offering zero-fee withdrawals below thresholds. |
| QR+ Interoperability | Q1 2027 | Deploy a single interoperable QR code standard for merchants. |
Friction Points in Real-Time Digital Rails
While infrastructure changes target cash, the central bank is simultaneously pushing for deeper integration of PayShap, South Africa’s instant payment platform launched in 2023.
Banking analyst Kokkie Kooyman pointed out that while bank-branded ATMs benefit from fierce commercial competition to keep machines operational, moving toward a shared utility introduces questions regarding government oversight and operational maintenance.
/file/attachments/orphans/ATB-ATMs_838932.jpg "Photo: Daily Maverick")
To further bridge informal markets into digital ecosystems, the Reserve Bank will pilot an interoperable QR code standard, QR+, in the first quarter of 2027. Paired with a planned single digital ID for payments, the initiative aims to build digital footprints for informal traders who lack conventional audited financial statements, expanding their access to formal credit markets.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
South Africa’s Reserve Bank wants a shared ATM network serving customers across banks.Officials outlined plans on 16 October for a pilot beginning in January 2027.The proposed machines would support withdrawals, deposits and balance enquiries, with smaller transactions free.… pic.twitter.com/7mXJOVk72j
