SOME BANKS MISS DEADLINE, EXTENSION GRANTED

MBABANE - Eswatini’s transition towards a modernised, real-time digital payment system has encountered some setbacks. This is because several banks and other financial institutions missed the initial deadline to fully integrate into the Eswatini Payment Switch (EPS) Fast Payments Module. Initially set for January 31, 2025, the deadline has now been extended to February 28, 2025, by the Central Bank of Eswatini (CBE), giving participants additional time to comply with the system requirements.The extension has been confirmed by the bank when responding to a questionnaire sent by this publication.

EswatiniBank, Swaziland Building Society (SBS) and eMali are the only financial institutions that are already integrated into the EPS as of December 2024. Payments within these institutions now take at least 10 seconds to reach recipients.This means Nedbank, Standard Bank and FNB Eswatini are still lagging behind along with the other financial service providers being MTN Mobile Money (MoMo) and Instacash. Speaking during the launch last year, CBE Governor Dr Phil Mnisi said the fast payments phase would be followed by open banking and the Point of Sale (POS) and automated teller machine (ATM) switching features of the payment switch.

Year

The EPS Fast Payments Module, launched last year as part of Eswatini’s broader financial infrastructure reform, is designed to facilitate instant digital transactions between banks and non-bank financial institutions. It aims to enhance transaction efficiency, improve financial accessibility and reduce the reliance on cash-based payments. However, despite the urgency of the transition, some financial institutions have struggled to meet the initial timeline due to technical and infrastructural challenges. During the initial soft launch of the EPS Fast Payments Module, three financial institutions successfully joined the system.

In January 2025, the CBE reportedly certified three additional participants, who are currently undergoing controlled testing before rolling out the fast payment services to their customers later this month. While this expansion represents progress, it has not been smooth sailing for all financial service providers. According to the CBE, two participants, failed to meet the original deadline, delaying the full implementation of the system. These financial institutions have yet to receive certification for fast payments and their integration remains incomplete.

The CBE has acknowledged that the transition to the EPS involves a significant overhaul of existing digital payment infrastructure and the complexity of aligning various financial entities to a unified system has contributed to the delays.The process of shifting from traditional banking and payment models to a real-time digital system requires extensive reconfiguration of existing financial frameworks. The CBE has indicated that one of the key challenges is the restructuring of outdated banking infrastructure to align with the EPS. Before the introduction of the EPS, financial institutions operated on independent payment systems, which now need to be integrated into a centralised, consolidated network.

Additionally, the complexity of compliance with new regulatory and security requirements has further slowed the process. Each financial institution must ensure that its digital payment systems meet the necessary security protocols, fraud detection measures and interoperability standards. Given that institutions had different legacy systems in place, the integration path has varied, with some facing greater difficulties than others.Moreover, banks and other financial service providers must conduct rigorous internal testing before launching fast payment services to customers.

Seamlessly

Ensuring that transactions occur seamlessly, securely and in real time requires extensive technical evaluations, which have contributed to delays for some institutions. In response to these challenges, the CBE has extended the deadline to February 28, 2025, to allow the remaining participants to finalise their integration. While the delay raises concerns about the readiness of some financial institutions to adopt modern payment technologies, it also highlights the importance of ensuring that the system is robust, secure and fully functional before full implementation.

For businesses and consumers alike, the EPS Fast Payments Module promises several advantages, including faster transaction processing, reduced costs, and improved financial inclusion.
However, the delays suggest that not all players in the financial sector were adequately prepared for the transition. Despite the challenges, the CBE remains optimistic that all financial institutions will be fully onboarded by the new deadline.  The regulatory body has been working closely with the affected institutions to provide support and ensure a smooth transition.

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