The Payments Revolution is Coming to SA: Are Banks Ready?
Get ready for a seismic shift in the way we make payments in South Africa. The Reserve Bank is pushing forward with plans to let non-bank players – think fintechs and startups – into the payments game, and it’s about to get wild.
Lesaka Southern Africa CEO Lincoln Mali says this could be a game-changer for financial inclusion and payment digitization. "It’s a profound development that will help the digitization of the economy," he says.
But don’t just take his word for it. Look at what’s happening in Brazil, India, and Egypt, where fintechs have been growing their market share to double digits in just a decade. That’s what happens when regulation gets out of the way and innovation can thrive.
Of course, the devil is in the details. The Reserve Bank needs to get the regulatory framework just right – not too tight, not too loose. They’re experimenting with "regulatory sandboxes" to test the waters.
Mali warns that fintechs need the right environment to flourish, and regulatory constraints can hold them back. "Regulation should be fit for purpose, not just restrictive," he says.
And then there’s the dream of regional payment integration in Southern Africa. It’s a bold vision, and Lesaka is poised to be a key player. "Africa is going to be the fastest growth environment for fintech," says Mali. "Fintechs will take bigger market share from incumbent banks because innovation will come from fintechs."
Don’t miss our interview with Lesaka’s Lincoln Mali for the full lowdown on what’s happening in the payments space.
And, as a special bonus, check out our related article: Back in black: Lesaka swings from operating loss into profit
