SARB’s Bankserv Takeover: A power grab set to rock South Africa’s financial sector
Economy
Jonathan Maphosa, founder and managing partner of Maphosa Attorneys, played a pivotal role in the legal and regulatory strategy behind rapid domestic payment platforms and regional initiatives such as the SADC Transactions Cleared on Immediate Basis (TCIB) project.
Image: Maphosa Attorneys
THE South African Reserve Bank’s (SARB) acquisition of majority control over BankservAfrica, now rebranded as PayInc SA, marks a watershed moment in the evolution of South Africa’s national payment infrastructure.
This strategic move signals a deliberate shift toward a digital-first, inclusive, and modernised payments ecosystem. To unpack the implications of this transformation, the Sunday Independent reached out to seasoned leader in the Southern and sub-Saharan African payments domain, Jonathan Maphosa.
Maphosa, who previously served as chief legal officer and executive committee member at BankservAfrica, brings deep institutional knowledge to the conversation. He also played a pivotal role in the legal and regulatory strategy behind rapid domestic payment platforms and regional initiatives such as the SADC Transactions Cleared on Immediate Basis (TCIB) project.
According to Maphosa, the rebranding itself is highly symbolic. “BankservAfrica has now been rebranded to PayInc SA as of 29 August 2025. I believe the rebrand is reflective of the payments utility’s strategic shift toward a digital-first payments platform and its evolving role, support for innovation and competition with fintechs, and, lastly, alignment with the SARB’s acquisition and oversight role.”
One of the most pressing concerns raised in policy circles is whether this acquisition introduces new financial stability risks. Maphosa dismisses this notion. “There are no obvious financial system stability risks introduced,” he said. “The clearing infrastructure is analogous to the settlement infrastructure, and PayInc has a 50-year history of operational stability that is unlikely to be affected by a change of ownership.”
He further clarified that the architecture of South Africa’s payment system had not fundamentally changed. Settlement remains with the SARB via SAMOS, a real-time gross settlement system, while PayInc continues to manage non-card clearing, a division that has long existed. “Combining them adds no additional risk,” he said.
On the question of stifling competition, Maphosa argued that the merger could ignite it. The Competition Tribunal has already unconditionally approved the transaction, and Maphosa believes this paves the way for broader participation. “Depending on the direction that the SARB takes with Payments Ecosystem Modernisation (PEM), the chances are good that competition will improve. I would argue that if anything, this merger will serve as a catalyst for innovation and economic growth.”
He pointed to Brazil’s Pix as a powerful precedent. “A digital public infrastructure/utility such as PayInc will certainly serve as a driver of growth and inclusion. The paradigm case for catalysing domestic competition is Pix in Brazil, where the Central Bank of Brazil introduced a regulator-owned scheme and product and boosted both adoption and competition. This is because services were offered to all participants equally, at a cost better suited to domestic actors, and systemic incumbent advantages were removed.”
His insight cuts to the heart of modern fintech strategy: “The reality is that the vast majority of the market does not want to do payments; they want to consume and embed them in more sophisticated value propositions. Making them available to all on the same terms enables that.”
On a potential conflict of interest arising from the SARB acting as both regulator and owner Maphosa was unequivocal: “The PayInc Memorandum of Incorporation is clear in that the public payments utility remains independent. The MOI provides strict mechanisms outlining the appointment process of directors by the commercial bank shareholders and the SARB, shareholder nomination thresholds, reserved appointments and term, linked to shareholding. It appears the majority of directors will be independent directors.”
He also contextualised the SARB’s unique institutional nature: “The SARB, as regulator, is nominally privately shareheld with approximately 2 000 private shareholders, each limited to a maximum of 10 000 shares, with each shareholder having a single vote per shareholder, not per share. The total dividend is capped by law, and the bank’s profits accrue to the state and not the shareholders. So in substance, the SARB is a public institution and is accountable to Parliament. Therefore, it is unlikely that conflicts of interest will arise.”
Maphosa stressed that South Africa is not operating in a vacuum. “There are numerous case studies we can draw lessons from, three countries that come to mind are India, China, and Brazil,” he said. “All three countries’ central banks have successfully taken control or ownership of domestic payment infrastructure.”
He highlighted how India leveraged public-private collaboration to build UPI, enabling fintechs like Google Pay to flourish; how China’s central bank co-opted private payment giants like Alipay while asserting regulatory oversight; and how Brazil’s Pix achieved 65% population penetration in just four years by prioritising simplicity, low cost, and universal access.
“In all three case studies,” Maphosa observed, “the benefits at a national scale were driven by inclusive and coordinated efforts by the regulator and all payment ecosystem participants, including fintechs, with the objective of increasing innovation, national growth, financial inclusion, and digital payments at reduced, or in some instances, nil-cost to the end-user.”
The real test of this new era, Maphosa believes, lies in platforms like PayShap, South Africa’s real-time, low-value payment service launched in March 2023. “I foresee significant long-term financial inclusion benefits,” he said. “The benefits include support for the informal economy and micro-businesses, speed/immediacy, convenience through the simplification of payment identifiers, reduced costs, reduced dependency on cash, and interoperability, just to mention a few.”
But success is not automatic. “The mitigation of risk for this and other SARB-led modernisation programmes will very much depend on the direction the SARB takes with PEM,” he cautioned. “International examples in India and Brazil bode well — if the SARB follows up with appropriate regulatory frameworks, taking into account matters such as mandatory acceptance by significant payments ecosystem participants. This will enhance the chances of long-term success and viability.”
With the Competition Tribunal having already approved the merger unconditionally, Maphosa sees little need for additional safeguards. “This horse has already bolted,” he said candidly. “PayInc remains independent for all practical purposes. It will be for the Board of PayInc to observe and adhere strictly to the provisions of its MOI, which provide more than sufficient safeguards.”
Instead, the focus must shift to regulation that enables rather than restricts. “The development of a well-balanced regulatory framework that not only continues to ensure the safety, efficiency, and integrity of payment systems but also serves as an enabler for market-driven innovation by commercial banks, fintechs, and payment systems operators remains key,” he said.
SARB’s move, according to Maphosa, is not about centralising control, but more anout unlocking potential. And if guided by inclusive design, sound governance, and global best practices, PayInc could become the backbone of a truly digital and inclusive economy.