SA Fintech Ecosystem Brief | June 2026

Regulators draw the line on stablecoins, capital flow rules near finalisation, and non-bank payment licensing takes shape.

June was one of the most decisive months for South African fintech regulation this year.

Regulators moved from consultation to commitment, drawing clear lines on crypto and stablecoins, closing key comment windows, and pushing capital flow reform toward finalisation.

Dealmaking and investment kept moving in the background too, with consolidation activity picking up pace and Paymentology's raise still reverberating across the market.

Regulators Draw the Line on Crypto and Stablecoins

On 2 June, the South African Reserve Bank and the Financial Sector Conduct Authority issued a joint statement on crypto assets and stablecoins.

The message was direct. Crypto assets and stablecoins are not legal tender under the National Payments System Act.

But the statement drew an important distinction. Unbacked crypto assets will not be regulated as payment instruments. Stablecoins, which the regulators say possess some characteristics of digital money, are being treated very differently.

The Intergovernmental Fintech Working Group (IFWG) has now been tasked with analysing local currency-pegged stablecoins and developing a regulatory response by late 2026. Foreign-pegged coins such as USDT and USDC remain excluded from domestic payment use, largely over currency substitution concerns.

For rand-backed stablecoins like ZARU, the signal is clear. Regulators aren't closing the door. They're building the lane.

Capital Flow Rules Move Toward Finalisation

South Africa is rewriting its exchange control rules for the first time since 1961, and crypto is now part of the picture.

Under the draft rules, anyone holding crypto above a certain amount will need to send it across borders through a licensed, regulated provider rather than moving it freely. Earlier drafts worried a lot of people in the industry, who read them as a crackdown on ordinary crypto holders. Treasury and the SARB have since clarified that isn't the intention. The rules won't apply retrospectively, and they're aimed at keeping money moving through regulated channels, not punishing people for holding crypto.

The comment period, already extended once, closed on 30 June. In the lead-up to that deadline, FINASA gathered input from members and the wider industry, making sure the practical realities of running a fintech business were part of the conversation.

This is the kind of process FINASA exists to plug members into, shaping the rules before they're finalised rather than reacting to them once they're law. Membership details are on the FINASA website.

COFI Bill Clears Cabinet

Cabinet approved the Conduct of Financial Institutions Bill for submission to Parliament, with Finance Minister Enoch Godongwana formally giving notice.

Eight years in development, COFI completes South Africa's Twin Peaks regulatory framework. It regulates financial products based on the outcomes they produce rather than the technology behind them, opening the door to differentiated licensing for new entrants.

Cabinet also approved amendments to South Africa's anti-money laundering and counter-terrorism financing laws, ahead of the FATF Mutual Evaluation beginning mid-2026.

Non-Bank Payment Licensing Takes Shape

The SARB's Payments Ecosystem Modernisation programme closed its comment window on the draft Authorisation Framework on 15 June.

The reform ends the requirement for non-banks to route payments through a bank sponsor. In its place, firms will be licensed based on the specific activity they perform, whether that's e-money issuance, merchant acquiring, or remittances.

The final framework is expected in the third quarter. Once in force, it stands to reshape access to PayShap and reduce reliance on the bank sponsorship arrangements that have defined the market for years.

Elsewhere, the FSCA confirmed it had approved 300 of 512 Crypto Asset Service Provider licence applications by the end of 2025, with the regime continuing to mature under Travel Rule and FIC Act requirements.

Stablecoins and Custody Gain Ground

ZAR Universal, the rand-backed stablecoin launched by Luno, EasyEquities and Lesaka in February, kept building institutional traction through June.

Every ZARU in circulation is backed 1:1 by rand reserves held at Standard Bank, managed by Sanlam and audited monthly. Access remains limited to institutional investors for now, with a retail rollout planned in phases.

Absa's Corporate and Investment Banking division became Ripple's first major custody partner in Africa, offering institutional clients bank-grade custody for tokenised assets and cryptocurrencies. It's the clearest sign yet of how South Africa's large banks are positioning for what comes next.

Consumer adoption is following the same curve. Discovery Bank and Visa now estimate that 7.8 million South Africans treat crypto as a mainstream asset class, up sharply since Discovery's in-app Luno integration launched last year.

Crypto Moves Into Everyday Payments

In February, Ozow became one of the first major South African payment platforms to add cryptocurrency as a standard checkout option, partnering with Bitcoin-focused MoneyBadger.

It's a small development on paper, but a meaningful one. Crypto is shifting from a separate offering to a standard part of how South Africans pay.

Funding and Growth

South Africa secured approximately $134 million in fintech funding through the first quarter of 2026, placing it second in Africa behind Egypt.

That momentum has carried through the year. FINASA member Paymentology's $175 million raise in May remains the standout transaction of 2026 so far, and conversations across the market increasingly centre on governance and durable growth rather than growth at all costs.

Consolidation Continues

Lesaka Technologies' R1.1 billion acquisition of Bank Zero, cleared by the Competition Tribunal in November 2025, has had its deadline extended to 31 January 2027 while the Prudential Authority finalises its consent. Once complete, the deal gives Lesaka a full banking licence and embeds neobank capability into its platform.

Revolut's application for a South African banking licence is moving forward. Its local waitlist is now nearing 100,000 registrations. The company also welcomed new leadership this year, with Dr Gaby Magomola, former CEO of African Bank, taking over as Chairman in January.

And in early-stage discussions with Investec, Pepkor Holdings is exploring a zero-fee banking product for its predominantly low-income customer base. Nothing has been filed with regulators yet, but a retail-embedded banking product reaching Pepkor's existing store footprint would be a significant financial inclusion moment if it goes ahead.

Ecosystem Watch

Nominations Are Open for the SA FinTech Awards 2026

Nominations for the South African FinTech Awards 2026 are now open and close on 21 August. Winners will be announced on 26 November at the F3 FINASA FinTech Festival, running from 25 to 26 November.

If there's a founder, team or product in your network doing work worth recognising, this is the moment to put them forward. Nominate here: https://www.finasa.org.za/awards

Get Involved in Money Smart Week South Africa 2026

Preparations are underway for Money Smart Week South Africa 2026, running from 24 to 30 August in association with National Treasury and ecosystem partners.

The initiative creates a platform for financial institutions, fintechs and industry stakeholders to engage directly with South African consumers on financial literacy and money management.

FINASA is recruiting participants now. If your organisation wants to take part, get in touch at monique@finasa.org.za

FINASA Industry Spotlight Launches

FINASA published the first edition of its Industry Spotlight series on 17 June, a new long-form publication built around in-depth conversations with the people shaping the industry.

Edition 1, Expanding Access: The Next Phase of Digital Finance, features Jeff Parker of Paymentology, Cheslyn Jacobs of GoTyme Bank, and Mpho Tlhape and Karabo Seduma of ePocket. Three very different vantage points, and yet they kept landing in the same place: access and inclusion aren't the same thing, and the industry's next chapter will be judged by participation, not just products.

Read the full edition on the FINASA website.

Edition 2, Building Investable Fintechs: What Investors Look For and What Founders Often Miss, launches mid-July with commentary from Nic Smalle of Apis Partners and Anton Gaylard of Crossfin. Expect a sharper, investor-facing look at what actually separates a fundable fintech from one that just looks good in a pitch deck.

Events Across the Ecosystem

The Africa Payments & RegTech Forum brought banks, fintechs and regulators together in Johannesburg on 25 June, with AI, cybersecurity and compliance dominating the agenda. The BFSI Innovation & Technology Summit also returned to South Africa for its 36th edition, reaffirming the country's place as a leading venue for financial services innovation.

FATF Review Begins

South Africa's FATF Mutual Evaluation begins in the second half of 2026 and concludes in October 2027. AML and CFT compliance is already being shaped in direct anticipation of the review.

Looking Ahead

The third quarter will bring a run of decisions that matter. The SARB is expected to publish its final Authorisation Framework, Treasury and the SARB will begin processing capital flow submissions, and Parliament will open committee hearings on the COFI Bill.

The IFWG's analysis of local currency-pegged stablecoins is likely to be the most consequential fintech policy document of the second half of the year, with ZARU's institutional trajectory feeding directly into that process.

As always, the businesses closest to these conversations will be the ones best placed to act when the rules land.

Through its working groups, regulatory engagement and events, FINASA keeps members inside those conversations rather than reading about the outcomes afterwards. In a year when regulation, infrastructure and digital assets are all moving at once, that kind of proximity is becoming a real advantage.