South Africa's payment shake-up: will small businesses get a better deal?

Every time a customer taps a card machine, a business owner has to account for the cost of that transaction. For a shop doing thousands of rand in sales each month, those fees add up. The same goes for a takeaway, hair salon or small online store that depends on electronic payments. South Africa is preparing to let more non-bank companies into its national payments system. The Reserve Bank's plans could allow qualifying retailers, telecoms companies and fintechs to offer payment services with more direct access to the infrastructure used to move money.

That could bring more competition into the market. Whether it makes life cheaper for a small business is another question.

A few hundred rand can make a difference

Take a shop that processes R100,000 in electronic payments every month. At an effective fee of 2%, it pays R2,000 in payment charges. If another provider charged 1.5% for the same transactions, the monthly bill would drop to R1,500. That leaves R500 in the business, or R6,000 over a year.

The calculation is straightforward, but those rates are examples rather than prices announced under the new arrangements. Actual fees depend on the provider, transaction type and merchant agreement. And the cheapest rate on an advert may not be the cheapest service. A provider could charge for the card machine, a monthly account or additional features. A business also needs to know when its money will arrive and what support is available when a payment fails. For an owner who needs to buy stock every few days, waiting for sales proceeds can be just as frustrating as paying a high fee.

Who will enter the market?

Banks have long played a central role in South Africa's payment infrastructure. The planned changes could give eligible non-bank companies more direct access, creating room for new payment services and different pricing models. Fintechs could target online sellers. Telecommunications companies could develop services for merchants already using their networks. Retail groups might explore payment products for their customers and suppliers.

Those are possible opportunities, not confirmed launches. The question for small businesses is which companies will actually enter the market and what they will offer. A new provider might compete on price, faster settlement or better service. Another might focus on particular industries or larger merchants. More choice does not guarantee lower prices. Businesses will have to compare the offers available to them.

The changes are still taking shape

Reuters reported on 16 October 2026 that the Reserve Bank was preparing to open the national payments system to more non-bank participants, with the first expected to go live in 2027. The timetable depends on the rules, licensing and technical work required to bring new participants into the system. The announcement does not mean that every retailer or fintech will automatically be allowed to provide payment services.

Until the requirements and commercial offers are clear, small businesses cannot calculate what the change will mean for their own costs.

Start with the statement from your current provider

Business owners do not need to wait for new providers to review what they pay now. Take a recent payment statement and add up the transaction fees, monthly charges and equipment costs. Compare that total with the amount received electronically during the same period. Then check how long it takes for the money to reach the business account. If the provider offers different pricing plans, ask whether the business qualifies for one of them.

When new services arrive, those figures will make it easier to compare offers without relying on claims about cheaper payments. For now, the Reserve Bank's plans are a change to how the market operates, not a promise that merchants will immediately pay less. The difference will become clear when businesses can compare actual prices and see how much money lands in their accounts.

What to track: Total electronic sales, all payment charges and the time taken for funds to settle. Keep the figures for a month and use them to assess any new offer. For a small business, the useful outcome is simple: paying less to accept a customer's money without making it harder to get hold of it.