If you're thinking about launching a payment service in South Africa — especially one with international reach — you’ve probably realized by now that this is not plug-and-play territory. It’s doable, yes. But simple? No.
You’ll be dealing with regulations, categories, definitions that overlap. And, if you’re building something that touches sectors like online gaming or betting, you’ll likely brush up against the same rules that apply to those applying for a Gambling license in South Africa — strict documentation, compliance checks, money flow tracking. The regulators may be different, but the hoops? Pretty similar.
Let’s get this out of the way: if you move funds, process payments, store value, or connect people to financial tools — you’re in regulated space. Doesn’t matter if it’s crypto, fiat, or just numbers in an app.
Without a license, your banking options are almost zero. Most institutions will simply freeze your onboarding or shut down operations if they catch wind of an unlicensed payments business. It's also a branding thing — you can’t expect users to trust you with their money if you’re not on solid legal ground.
There isn’t one license. That’s part of what makes this tricky. It depends on what you’re building. Here’s how it generally breaks down:
This is the most common route for fintechs. It comes from the FSCA — the Financial Sector Conduct Authority.
If you provide a platform that lets people move, save, or access money (even indirectly), you're probably expected to register as an FSP. That means having:
It also means applying and waiting — sometimes 2 to 4 months depending on how organized you are.
Not an official standalone license (yet), but if you process payments between users or merchants — you might fall under SARB’s oversight. That’s the South African Reserve Bank.
If your app acts as a middle layer — like a gateway, wallet, or checkout button — then SARB wants to know how that flow works. Often, they’ll ask you to:
It’s more technical, less paperwork-heavy — but still real.
This is the one you want if you're doing anything cross-border. The Financial Intelligence Centre (FIC) handles this.
You’ll need an ADLA license if your platform sends or receives money to/from outside South Africa — especially if you convert currency. Most remittance startups go this route.
What’s involved:
This one comes with serious recordkeeping expectations. They’ll want your systems tight.
Unless you’re planning to be the next big thing in commercial banking — like literally issuing cards and holding deposits — this isn’t for you.
It’s issued by the Prudential Authority and requires:
Startups don’t usually go this route, but it exists.
If you’re using USDT, BTC, or any other crypto to settle payments — welcome to dual regulation. Since 2022, crypto assets are classified as financial products in SA. That means FSP registration is mandatory.
You’ll also need to:
Some banks will still say no, but a growing number are open — if your compliance is airtight.
Getting licensed isn’t fast. It’s a project. You’ll need to:
Is it exciting? No. But it’s necessary.
South Africa isn’t the easiest market — but it’s structured. You know what to expect.
Once licensed, you can:
The fintech ecosystem is growing. So are support networks — legal firms, compliance consultants, API providers. You won’t be doing this alone.
So, what license do you need? The answer is: it depends on what you do — and how. Most payment startups need an FSP. Cross-border tools need an ADLA. Gateways and wallets might fall under SARB.
But whatever the category, the real requirement is this: get serious about compliance. From day one.
If you treat licensing as part of the product — not just a checkbox — you’ll last. And in a market like South Africa, staying in the game is how you win it.