The regulation of electronic payments in South Africa

Abstract

This dissertation analyses the electronic payments industry in South Africa and identifies certain selected shortcomings in our law to regulate new innovations in the payment services market. It focuses on the rights and obligations of parties involved in different methods of electronic payments and analyses how the common law as well as legislation apply to these methods of payment. Consumer protection concerns are also highlighted, which are heightened by the lack of competition in the payment services industry. International developments are explored in comparison to the South African regulatory model. The conclusion reached is that there is a need for legislation dedicated to the intricacies involved in electronic methods of payment and that new entrants in the market should be welcomed. In this regard, guidance should be taken from the European Union and the United States of America, where detailed directives or codes have been implemented to cater for electronic methods of payment. Developments in South Africa, as well as abroad, for the regulation of crypto assets, a new innovation in the payment industry, are also explored. It is shown that, due to crypto assets not being utilized widely as a payment method, regulatory intervention is developing at a slow pace.