Reserve Bank moves to regulate cross-border payment facilitators amid e-commerce growth

The central bank said it had observed a significant increase in cross-border payment facilitator activities, prompting a coordinated response by its National Payment System Department (NPSD) and Financial Surveillance Department (FinSurv).

The South African Reserve Bank (Sarb) is preparing to introduce a new regulatory framework for cross-border payment facilitators as online retail and digital commerce continue to expand, bringing previously unregulated participants under formal oversight for the first time.

The central bank on Tuesday said it had observed a significant increase in cross-border payment facilitator activities, prompting a coordinated response by its National Payment System Department (NPSD) and Financial Surveillance Department (FinSurv).

Cross-border payment facilitators operate by aggregating and acquiring payment transactions in South Africa on behalf of offshore merchants that sell goods and services to local consumers, including digital products. Although these entities are not acquirers themselves, they function through sponsorship arrangements with authorised domestic acquirers.

The Sarb noted that payment facilitators currently operate without direct regulation in South Africa.