SARB’s September 2026 PEM Industry Dialogue: Key Developments for South Africa’s Payments Sector

Rochelle Mahon Vosloo

Oct 22

6 min read

Updated: 2 days ago

The South African Reserve Bank (SARB) held its latest Payments Ecosystem Modernisation (PEM) Industry Dialogue on 23 September 2026, providing further detail on several workstreams that will shape the next phase of South Africa’s payments landscape.

The updates covered PayShap and QR+, payment initiation, the PEMKey sandbox, push payment fraud, the forthcoming regulatory framework and the future of sponsorship arrangements for third-party payment providers (TPPPs).

For payment institutions, fintechs and other participants in the national payment system, the dialogue also set out a number of important dates and opportunities to participate directly in the PEM programme.

PayShap and QR+: changes are coming

The SARB and PayInc are resetting PayShap to address a number of areas, including feature and customer-experience parity, fraud, proxy payments, awareness, and fees and incentives.

PayShap participants should expect:

a liability framework and fraud model in November 2026;
a published ecosystem pricing model in January 2027; and
updated scheme rules in March 2027.

Separately, the QR+ workstream aims to make PayShap easier for merchants to accept.

Production activation for the first cohort of QR+ adopters is planned for 19 October 2026.

A new workstream for payment initiation

A further PEM workstream will focus on payment initiation.

The intention is to allow payment initiation service providers that do not hold customer funds to initiate PayShap credit transfers directly. The first phase will run from November 2026 to January 2027 and will focus on refining the requirements and technical standard through a targeted working group.

To participate in the working group, an organisation must:

hold a current payment initiation licence or authorisation;
intend to apply for one, or have successfully applied for one; and
commit dedicated resources to the workstream.

Self-assessments for participation are due by 31 October 2026.

A second phase, planned for February to April 2027, will involve selecting participants for a controlled go-live.

How organisations can participate in PEM

The dialogue also provided greater clarity on how industry participants can become involved in PEM workstreams. Each organisation registers once through the PEM participation form, which places the organisation in the PEM participant database.

The SARB will then communicate individual participation opportunities as they arise, together with the eligibility criteria applicable to each workstream.

The payment initiation working group is the first opportunity being run through this process.

Suppliers providing services to the SARB, PayInc or participating organisations are appointed separately through the relevant RFP processes.

PEMKey sandbox opens to broader participation

The SARB has also opened its Payment Credential Ecosystem sandbox, known as PEMKey, to wider participation. Portal registration has been open since 1 September 2026.

The sandbox is open to potential participants including:

issuers;
verifiers;
wallet providers; and
supporting service providers.

Participants can test credentials, verification, and payment use cases, including payment approval in a wallet in place of SMS OTPs. The SARB offers a ready-made wallet, issuer, and verifier, but participants still integrate them and build their own front ends.

Gerhard Jacobs (gerhard.jacobs@resbank.co.za) provides the portal link. The SARB approves each application, and sandbox participation does not confer production approval.

Push payment fraud remains a key focus

The dialogue also included findings from a diagnostic review of push payment fraud.

The recommendations presented cover a broad range of issues, including:

fraud data reporting;
money mule activity;
payment-message data;
recipient checks and name matching;
fraud response;
minimum standards for participants;
a models and technology working group; and
potential legal changes to support greater data sharing.

The proposals would strengthen PayInc’s fraud capability and would also require SABRIC and SAFPS to align fraud definitions and data so that information can be shared more effectively across sectors.

Importantly, these recommendations are not yet final. The SARB is still testing them with PayInc, which means the final obligations for participants, and the timing of those obligations, remain to be confirmed.

Final Exemption Notice and Authorisation Framework expected in November

A significant regulatory update was also provided during the dialogue.

Annah Masoga reported that the third round of consultation drew over 1,000 comments, and that the NPSD considered every comment. The final Exemption Notice and Authorisation Framework are expected to move to the Prudential Authority and the SARB’s approval structures during October 2026. Thereafter, they are expected to move to the Minister of Finance and National Treasury during October or November. Publication is currently expected in November 2026.

Based on the presentation delivered at the Industry Dialogue, no further consultation round is currently indicated before publication. For payment businesses affected by the new framework, this makes the coming weeks an important period for reviewing existing structures, governance, contracts and compliance arrangements ahead of the final framework.

Sponsorship arrangements for TPPPs are expected to end

The dialogue also included an important development for third-party payment providers.

Annah Masoga also indicated that sponsorship arrangements for third-party payment providers (TPPPs) will no longer be available. At this stage, however, the SARB has not yet provided detail on how or when this change will take effect.

TPPPs and businesses currently operating through sponsorship arrangements should therefore monitor further SARB guidance closely before making assumptions about the practical effect or timing of the change.

What should payment-sector participants be doing now?

Several practical steps emerge from the September Industry Dialogue.

Register to participate in PEM

Organisations that want to participate in PEM projects can register once through the SARB’s PEM participation form.

Once registered, organisations are included in the participant database and can receive details of future workstreams and their applicable eligibility criteria.

Consider joining the payment initiation working group

Businesses that meet the criteria for the payment initiation workstream can submit a self-assessment by 31 October 2026.

The working group will help shape the requirements and technical standards for direct PayShap payment initiation from November 2026.

Explore the PEMKey sandbox

Businesses working with wallets, credentials, verification or related payment technology can apply to participate in the PEMKey sandbox and test relevant use cases in a controlled environment. Office hours run every Wednesday from 16:00 to 17:00.

Prepare for the final Authorisation Framework

With publication of the final Exemption Notice and Authorisation Framework expected in November 2026, payment businesses should begin assessing whether their current governance, compliance, contractual and operational arrangements are aligned with the direction of the new framework.

A gap assessment by Mahon Attorneys can help identify areas that may need attention before the framework takes effect.

Key dates to watch

1 September 2026: PEMKey Payment Credential Ecosystem portal opened for registration. Issuers, verifiers, wallet providers and supporting services can apply to test in the sandbox.
23 September 2026: SARB PEM Industry Dialogue held.
October 2026: Final Exemption Notice and Authorisation Framework move to the Prudential Authority and SARB approval structures.
19 October 2026: QR+ production activation planned for the first cohort of PayShap adopters.
31 October 2026: Self-assessments due for the payment initiation working group. Applicants must hold, intend to apply for, or have applied for a payment initiation licence, and commit dedicated resources
October-November 2026: Exemption Notice and Authorisation Framework expected to move to the Minister of Finance and National Treasury.
November 2026: PayShap liability framework and fraud model expected.
November 2026: Publication of the final Exemption Notice and Authorisation Framework expected.
November 2026-January 2027: Payment initiation phase one: a targeted working group refines the requirements and technical standard for initiating PayShap credit transfers.
January 2027: PayShap ecosystem pricing model expected.
February-April 2027: Payment initiation phase two: the SARB selects participants for a controlled go-live.
March 2027: Updated PayShap scheme rules expected.
Every Wednesday: PEMKey sandbox open office hours from 16:00 to 17:00.
To be confirmed: Final push payment fraud recommendations, including participant obligations and implementation timing.
To be confirmed: Timing and terms for the end of sponsorship arrangements for TPPPs.

Looking ahead

The September Industry Dialogue shows that the PEM programme is moving from consultation and design into increasingly practical implementation.

For payment businesses, the next few months will bring several developments at the same time: new PayShap rules, payment initiation work, greater access to the PEMKey sandbox, further fraud-control measures and, most significantly, the expected publication of the final Exemption Notice and Authorisation Framework.

The immediate priority is to understand which of these changes affect your business and prepare accordingly.

Mahon Attorneys assists payment businesses, fintechs and other participants in the payments ecosystem with regulatory positioning, authorisation readiness and legal gap assessments. If your organisation would like to assess its readiness for the forthcoming Authorisation Framework, our team can assist.

Important information:

This article provides general information as at its publication date and does not constitute legal advice. Legal and regulatory requirements may change. Specific legal advice should be obtained for your business and circumstances.