What does it take to get a payment switching licence in South Africa?
To hold a payment switching licence in South Africa, you need the System Operator licence from South African Reserve Bank. Published minimum capital: None in the Directive. Authorisation is criteria-based (PASA/PA criteria, Bank-approved), not capital-gated. 99 entities currently hold a payment switching licence in South Africa. Full requirements — minimum capital, local presence, timeline, local ownership, fees and ongoing obligations — are set out below in each instrument's own words, with source and date; amounts are in the statute's own currency.
“Payment switching” here is the normalized activity: Own or operate payment switching, routing, clearing or interoperability infrastructure between payment service providers, issuers, acquirers and schemes.
Activity id (as used by the Afriset MCP): fintech:SWITCHING
System Operator
South African Reserve Bank| Requirement | As published | Source | Source date |
|---|---|---|---|
| Minimum capital | None in the Directive. Authorisation is criteria-based (PASA/PA criteria, Bank-approved), not capital-gated. Verbatim“meet the criteria as recommended by the relevant payment system management body, which criteria have been approved by the Bank in terms of section 4(2)(c)(i) of the NPS Act.” | NPS Act 78 of 1998 — Directive No. 2 of 2007 (System Operators), GN 1111, Gazette 30261, 6 Sep 2007 | 2007-09-06 |
| Local presence / incorporation | No such requirement: Not required by the Directive. | NPS Act 78 of 1998 — Directive No. 2 of 2007 (System Operators), GN 1111, Gazette 30261, 6 Sep 2007 | 2007-09-06 |
| Timeline | No processing timeline in the Directive. Effectiveness: 3 months after publication. Verbatim“This directive becomes effective 3 (three) months after the date of publication hereof.” | NPS Act 78 of 1998 — Directive No. 2 of 2007 (System Operators), GN 1111, Gazette 30261, 6 Sep 2007 | 2007-09-06 |
| Local ownership | No such requirement: Not addressed. | NPS Act 78 of 1998 — Directive No. 2 of 2007 (System Operators), GN 1111, Gazette 30261, 6 Sep 2007 | 2007-09-06 |
| Fees | No such requirement: Not addressed. Authorisation is administered by PASA/PA against Bank-approved criteria; no fee stated. | NPS Act 78 of 1998 — Directive No. 2 of 2007 (System Operators), GN 1111, Gazette 30261, 6 Sep 2007 | 2007-09-06 |
| Ongoing obligations | Meet Bank-approved PASA/PA criteria; written appointment agreement per client; confidentiality/separation of client info; no commingling (act only on the client's bank-account instructions, never to its own account); keep TPPP/SO divisions separate; no offsetting/netting of mutual obligations; keep records of each payment instruction 5 years. Verbatim“only act in accordance with instructions issued by the person to whom the service is rendered, and not pay such funds from or transfer such funds to its own account … keep records of each and every payment instruction processed by it for a period of five (5) years.” | NPS Act 78 of 1998 — Directive No. 2 of 2007 (System Operators), GN 1111, Gazette 30261, 6 Sep 2007 | 2007-09-06 |
Requirements as published in the cited instruments — not legal or compliance advice. Capital and fees are shown in the currency the statute itself uses. Where a value is located but not yet verified, we show that it exists but don't publish the figure. Verify directly with the regulator.
Maintained: this official source is re-checked on a weekly schedule — last checked 2026-08-04 · unchanged since the previous check.
Who already holds this licence?
99 entities are on the South African Reserve Bank register under the System Operator category — view the register .
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