Operation Vulindlela’s digital payments programme advances. (Image source: iStock)
Government has prioritised accelerating public infrastructure reforms, with plans to test secure digital payment authorisation across participating systems by March 2027.
This is based on the Operation Vulindlela quarterly report released by National Treasury on Friday.
Operation Vulindlela is a joint initiative of the Presidency and National Treasury aimed at driving the implementation of structural reforms to support more rapid and inclusive economic growth.
The second quarter progress report provides an update on implementation since July, highlighting milestones achieved across the seven reform focus areas.
Although progress remains uneven in some areas, Treasury points out that several of the digital public infrastructure reforms are advancing from design to implementation.
For the quarter in review, Treasury highlights the digital payments programme launched registration for a payment-authorisation credential and prepared for controlled testing.
As a result, there are plans to launch the PEM (Payments Ecosystem Modernisation) Key sandbox to test secure payment authorisation across participating systems and progress instant payments through PayShap, QR-code payments to government and digital wallets.
PEMKey is a digital credential that people can use to approve payments securely, which it notes opened for registration on 1 September. “Preparations progressed for a controlled testing environment to test its use across payment providers and its connection with digital identity.
“Work also advanced on enabling payments through PayShap and QR-code payments to government. The digital wallet programme is targeting end-November 2026, supporting the broader aim of giving citizens more convenient and cost-effective ways to make and receive payments.”
The digital public infrastructure leg forms part of the seven priority structural reforms identified by government, to reform the public service and build a capable state.
Its objective is to harness digital tools to improve government efficiency, enable inclusion and support economic transformation, according to Treasury.
The digital-adjacent initiatives of the digital public infrastructure reform include establishing the MyMzansicitizen services platform, the shared gov.za platform, MzansiXchange, as well as the digital ID programme facilitated by the Department of Home Affairs.
MyMzansi is part of government’s national digital transformation roadmap that was unveiled in May last year, with the aim to modernise how public services are delivered and accessed.
The platform is designed to be a single digital entry point for accessing government services.
Once fully operational, it will be in the form of a zero-rated mobile or web app that will enable remote access to government services. These include renewing licences, and accessing health, social and home affairs services, among others.
In the latest update, Treasury reveals MyMzansi has progressed from initial development into a functional prototype operating in a controlled testing environment.
“Building on the previous quarter’s foundations, the demonstration showed how digital proof of a matric qualification could be issued, stored, shared and verified by Umalusi. The same platform components will support additional credentials and services, with work underway on employment, grants and digital driver’s licences for incremental integration and testing.”
In addition to MyMzansi, the gov.za shared website platform also recorded progress, becoming operational for testing by participating departments (communications and digital technologies, home affairs and the Presidency). Meanwhile, the MzansiXchange data-sharing pilot is also progressing towards completion in December.
“These developments support a practical shift towards services where people can share verified documents digitally, avoid repeatedly supplying information government already holds and complete transactions more conveniently. Public availability will follow further testing and completion of the necessary legal and operational arrangements.”
In terms of the digital ID, the first working prototype was publicly launched on 1 October, following development during the quarter, according to Treasury.
“Public submissions on the draft Digital Identity Regulations remain under review. In parallel, access to smart ID and passport services through participating bank branches continued to expand, with the smart ID programme reporting 726 803 applications and 588 111 cards collected. The Department of Home Affairs announced that it will cease production of the green ID book by 31 March 2027.”
