South African Fintech Challenges Major Banks Over ATM Access

A Pretoria-based fintech company, Motswagae Holding, has filed a formal complaint with the South African Competition Commission regarding access to national ATM networks. The company alleges that the country's largest banks are actively blocking its cardless cash withdrawal platform, 360Wallet, from operating across their infrastructure. This dispute highlights ongoing tensions between established financial institutions and emerging technology providers in the region. The complaint, filed under case number 2026Jul0016, specifically names FirstRand, Standard Bank, Capitec, Nedbank, and Investec as parties involved in the alleged obstruction. Motswagae Holding claims these banks maintain structural barriers that prevent its platform from functioning as intended. The Competition Commission confirmed receipt of the complaint on July 8, 2026, though it has not yet commented on the merits of the case. At the heart of the disagreement is the 360Wallet system, which aims to allow consumers to withdraw or deposit cash at any participating ATM using a digital voucher or token. Currently, cardless cash vouchers are typically restricted to the ATMs of the issuing bank or its specific retail partners. Motswagae argues that its technology would break down these silos and reduce transaction costs for unbanked consumers. Velly Sipho Phaloane, the CEO of Motswagae Holding, stated that the company's platform has already been validated through the Intergovernmental Fintech Working Group’s regulatory sandbox. According to Phaloane, the authorities determined on June 30 that the system is legally valid and requires no special exemptions to operate. He emphasized that the barriers to entry are structural rather than regulatory in nature. Phaloane noted that when established financial infrastructure declines to interface with validated, lower-cost utilities, the ordinary consumer pays the price through inflated fees. The company’s submission also directs its concerns toward the South African Reserve Bank and the Intergovernmental Fintech Working Group. These bodies oversee the regulatory environment that fintechs must navigate to provide services to the public. This conflict emerges as South Africa continues to debate the future of its open banking landscape. While some major banks advocate for a market-led approach to innovation, various fintech industry bodies argue that regulatory intervention is necessary to ensure fair competition. They contend that clear governance and industry collaboration are essential to modernizing the financial ecosystem. Financial inclusion remains a primary goal for regulators and private firms alike in South Africa. Many startups are currently leveraging mobile connectivity and data access to offer digital lending and payment processing to previously underserved populations. However, the ability of these firms to scale often depends on their access to the underlying banking infrastructure. Meanwhile, the broader financial sector is facing increased scrutiny regarding compliance and risk management. The Financial Sector Conduct Authority recently reported a significant increase in fines imposed on financial service providers to encourage better behavior. This shift reflects a wider trend across Africa where regulators are tightening rules to ensure stability and protect consumers. As the Competition Commission reviews the complaint, the outcome could have significant implications for the future of payment systems in the country. If the commission finds that structural barriers are indeed hindering competition, it may force a change in how banks share their ATM networks with third-party providers. Such a move would represent a major shift in the competitive dynamics of the South African banking sector. For now, the industry awaits further guidance from the regulatory authorities regarding the next steps in the investigation. The case serves as a test of how South Africa balances the need for financial innovation with the established practices of its largest banks. The resolution of this dispute will likely influence how other fintech companies approach market entry and infrastructure access in the coming years.