Financial inclusion remains a key objective for the SARB as published in Strategy 2030. Learn what the strategy entails, why inclusive payment options remain important, and how your business is impacted.
Financial inclusion was one of the nine industry goals for Vision 2025. Since being published, the industry has moved at lightning speed to meet the regulator’s objectives. This includes phasing out cheques, providing authenticated collections through DebiCheck, and introducing a cost-effective instant payment system, PayShap.
Looking ahead, financial inclusion is still high on the regulator’s agenda. Strategy 2030 will build on the momentum gained so far by introducing policy changes that will meaningfully improve the accessibility to the national payments system (NPS).
With changes on the horizon, the industry is getting ready to move quickly. That’s why enterprises need to understand what Strategy 2030 wants to achieve - and start preparing now for the next generation of inclusive payments.
While significant progress has been made to improve the accessibility and safety of the financial system, there is still room to improve the adoption and use of digital payments. According to the SARB Payments Study report:
Note, though, that while digital payments are seen as an enabler to access the formal financial sector, Vision 2025 and Strategy 2030 do not aim to eliminate the use of cash. Rather, the SARB’s goal is to provide safer, cost-effective, and faster digital alternatives that can support an informal economy that’s worth over R 1 trillion.
Strategy 2030 has three focus areas:
“One of the key priorities of Strategy 2030 is to provide smarter, cheaper and more inclusive payment options. ”
To drive the payments-related objectives forward, the Payments Ecosystem Modernisation (PEM) programme has been formed to focus on establishing a public payments utility (PPU). The PPU aims to be a world-class payment system with low barriers to entry, enhancing competition and access to digital payment methods.
In addition, the SARB intends to submit proposed changes to the National Payment System Act 78 of 1998 (NPS Act) by the end of 2025 in order to allow a wider range non-banking institutions to directly participate in the system. A directive is already in the works - the consultation paper on the draft Authorisation Framework has been published for industry comments. This progress inspires confidence and is an important milestone for banks, fintechs, payment service providers (PSPs) and other players of the NPS.
A more “open” payments ecosystem that’s designed with end-users in mind will impact how stakeholders choose to move forward with their payments strategy.
Both banks and retailers need to think about how fast their systems can adapt to the rapidly changing payments landscape. Electrum is trusted by leading banks and retailers to implement future-ready payments at speed.
Get in touch to learn how your business can prepare for the next generation of payments.