South African Reserve Bank Governor Lesetja Kganyago said greater competition in payment services could drive innovation and reduce costs for consumers, but regulation must keep pace with changes in the sector.
Speaking at the bank’s Payments Conference 2026, Kganyago said non-bank providers should be allowed to offer certain payment services without being subjected to the same requirements as traditional banks.
He said the proposed authorisation framework would ensure that regulation is proportionate to the risks posed by different providers, while strengthening operational resilience and protecting consumers.
“Appropriately regulated non-bank institutions would be able to perform specified payment activities,” Kganyago said.
He added that similar activities and risks should receive similar regulatory treatment.
“Regulation should identify the risk, apply proportionate safeguards and drive innovation in the market,” he said.
Kganyago’s remarks highlight the need to balance competition and innovation with appropriate safeguards as payment services evolve. The proposed framework aims to create room for new providers while ensuring that risks are managed and consumers remain protected.
VOC News
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