South Africa is set to experience a rapid acceleration in digital payments adoption in 2026, both in retail and enterprise sectors, according to technology and finance analyst Ephraim Modise.
Modise attributes the surge to the 2024 recognition of crypto assets as legitimate financial products by the Financial Sector Conduct Authority (FSCA), opening the door for both consumers and businesses to transact with digital assets.
He highlights that banks are now actively participating in the digital payments ecosystem. Notably, Absa’s Corporate Investment Banking (CIB) division partnered with Ripple to offer digital asset custody services, initially focusing on stablecoins. This move is expected to encourage other enterprises to integrate digital asset solutions.
“The pace of partnerships in South Africa’s digital payments space has been unprecedented,” Modise said, pointing to collaborations such as Absa/Ripple, Mukuru/VALR, Luno/Discovery Group, and Luno/SuperGroup during the latter half of 2025.
Further supporting growth, the South African Reserve Bank (SARB) opened the National Payment System (NPS) to fintechs in August 2025 and launched the Payments Ecosystem Modernisation (PEM) program, creating more opportunities for innovation in digital payments.
Regulatory Watch
Modise cautions that adoption rates will depend heavily on regulatory oversight from the FSCA and SARB. SARB governor Lesetja Kganyago has expressed concerns that stablecoins could be used to short the rand, highlighting the tension between innovation and monetary sovereignty. South Africa’s membership in BRICS, with its emphasis on dedollarisation, may also influence how regulators approach dollar-backed stablecoins.
About Ephraim Modise
Ephraim Modise is a journalist and writer focusing on technology, business, and finance in Southern Africa. He is the host of the Tech Aways podcast and author of the Tech Aways newsletter, providing insights into the region’s evolving tech ecosystem.
The outlook for 2026 suggests that South Africa could become a leading hub for digital payment innovation in Africa, as enterprises, fintechs, and regulators navigate this rapidly evolving landscape.