SARB to regulate cross-border payment facilitators

The South African Reserve Bank (SARB) has observed a significant increase in cross-border payment facilitator activities, where payment transactions are aggregated and acquired in South Africa for offshore merchants selling various goods and services, including digital products.

While these payment facilitators operate under sponsorship arrangements with authorised domestic acquirers, they have historically remained outside the direct regulatory purview in South Africa. This gap has prompted the SARB, through its National Payment System Department (NPSD) and Financial Surveillance Department (FinSurv), to develop a comprehensive and coordinated regulatory approach.

The objective is to ensure that these evolving payment models are brought under appropriate oversight, thereby safeguarding the integrity of the national payment system and addressing potential financial stability concerns arising from unregulated cross-border flows.

This coordinated effort is deemed essential to establish a level playing field and prevent regulatory arbitrage.

Under the new framework, payment facilitators will be explicitly required to comply with the NPSD's regulatory requirements, particularly those stemming from their existing sponsorship arrangements for domestic acquiring.

Simultaneously, they will also be subject to the application, operational, and compliance requirements set forth by FinSurv, which oversees financial surveillance matters.

This dual compliance ensures holistic regulatory coverage.

As a foundational step, FinSurv issued a draft circular in December 2025 for public consultation, specifically addressing Authorised Dealer and payment facilitator responsibilities, alongside cross-border settlement and reporting mandates.

FinSurv is actively reviewing the comments received from various stakeholders on this crucial document.