Lerato Lamola | Partner | Webber Wentzel | mail me |
Looking ahead to 2026, fintech will transform how financial services are delivered and accessed. Rapid technological innovation and shifting market dynamics drive this change. Key areas include machine learning, payments, crypto and blockchain, open finance, embedded finance and investment platforms.
These developments reflect broader fintech trends that are reshaping how businesses and consumers interact.
Across Africa and the broader region, these developments create new opportunities for growth and collaboration. They also encourage stronger regional engagement. At the same time, firms must remain agile while navigating a complex regulatory and competitive environment shaped by evolving fintech trends.
AI and machine learning
At the end of 2025, the Financial Sector Conduct Authority and the Prudential Authority published a joint survey titled Artificial Intelligence (AI) in the South African Financial Sector.
The survey presented market research on AI use across the financial sector. It also provided insight into the microprudential and macroprudential risks AI may create.
In 2026, regulators will likely increase engagement on an AI regulatory framework. This framework may include guidelines for the ethical use of AI tools. Importantly, the proposed framework will not apply only to financial services. It will also require collaboration with multiple regulatory bodies. These regulatory developments form part of the broader fintech trends influencing financial innovation.
Payments
In July 2025, the National Treasury published a position paper on the Payments Ecosystem Modernisation programme. The document, titled Positioning the South African Reserve Bank’s Payments Ecosystem Modernisation Programme: A Strategic Shift to a Higher Equilibrium, outlined the programme’s direction.
The position paper reaffirmed the policy goals in the National Payment System Framework and Strategy Vision 2025. To support regulatory amendments required for the programme, the South African Reserve Bank published two draft documents for public comment. These included the Draft Specific Payment Activities Exemption Notice and the Directive on specific payment activities within the national payment system.
Looking ahead to 2026, regulators will likely finalise these amendments. This step may enable greater involvement of non-banks in directly accessing the payment system. The finalisation of the Conduct of Financial Institutions Bill is also expected to include provisions related to payment system activities.
In addition, developments in South Africa’s Cash Smart Strategy may emerge. The central bank has advocated for white-labelled ATMs and the creation of a Cash Management Utility. These developments reflect how payment infrastructure continues to evolve in line with global fintech trends.
Crypto and blockchain
At the end of 2025, the Financial Sector Conduct Authority confirmed that regulators had issued 300 crypto-asset service provider licences. This milestone highlights the rapid growth and increasing maturity of South Africa’s crypto sector.
The industry is evolving beyond retail financial services and gradually expanding into wholesale financial services. As a result, more traditional financial institutions may begin providing access to crypto assets and related investments where regulations allow. These developments mirror broader fintech trends across global digital finance markets.
In 2026, stablecoins may become a central theme. Many industry participants expect stronger adoption of stablecoin payments across Africa and globally.
Regulators will likely release additional guidance and standards. These measures will likely address cross-border fund flows and the market conduct of crypto-asset service providers. In particular, the industry awaits the outcome of the judicial appeal before the Supreme Court of Appeal concerning the applicability of exchange control regulations to crypto transfers in Standard Bank v South African Reserve Bank.
Furthermore, the finalisation of the Conduct of Financial Institutions Bill may include provisions that address crypto-asset regulation.
Open finance
Although regulators introduced no formal developments in 2025, momentum may build in 2026. Regulators are likely to expand work that began in 2024.
The Financial Sector Conduct Authority may move toward formally adopting a South African open finance framework. Authorities may also introduce guidelines that regulate the activities of financial institutions and third-party providers.
In addition, the anticipated finalisation of the Conduct of Financial Institutions Bill may include provisions related to open finance activities. These changes align with global fintech trends focused on data sharing, interoperability and financial innovation.
Embedded finance and BNPL
Embedded finance continues to evolve rapidly. However, regulatory frameworks have not kept pace with innovation.
Research by the Intergovernmental Fintech Working Group indicates that buy-now-pay-later products currently fall within a regulatory grey area. Regulators must determine whether Buy Now Pay Later (BNPL) products fall under the National Credit Act or the Financial Advisory and Intermediary Services Act.
The National Credit Regulator oversees compliance with the National Credit Act. Meanwhile, the Financial Sector Conduct Authority oversees compliance with the FAIS Act. Therefore, further engagement between these regulators and the industry will likely occur during 2026.
The finalisation of the Conduct of Financial Institutions Bill could provide additional clarity. However, outcomes will depend on how regulators define their respective mandates regarding BNPL products.
Investment and regional engagement
Regulatory developments in the payments sector may stimulate mergers and acquisitions. These changes could also encourage additional foreign investment in local fintech companies.
International entrants may also enter the South African market during 2026. At the same time, policymakers may establish additional state-owned utility-type entities within the payments ecosystem.
In the digital asset space, partnerships between providers will likely increase. Stablecoins are gaining traction as tools for cross-border payments within the global payments ecosystem.
Finally, regional engagement among regulators will likely intensify. Supervisory bodies across Africa may work together to establish shared rules for fintech companies operating in multiple jurisdictions. These collaborations reflect broader fintech trends that are shaping the future of financial services across the continent.
