Digital access or regressive tax? TymeBank, Capitec and Minister Leon Schreiber weigh in as Department of Home Affairs identity verification fee hike becomes law.

A 6,500% spike in the cost of identity verification is now official, and, as you probably have read from your service providers, South Africa's banks, fintechs and digital economy enablers are scrambling to respond.

From 1 July 2025, the Department of Home Affairs (DHA) will charge R10 per real-time identity verification, up from a nominal 15 cents. Despite 30 days of intense public consultation, both in writing and in-person meetings (and resulting in the addition of the R1 off-peak option), following a formal gazette opening the consultation period, many vendors have raced to the media to cry foul.

TymeBank was out the gate early, calling for an immediate halt to the increase, describing it as a "crippling blow to financial inclusion".

Capitec, on the other hand, is quietly absorbing the cost, for now. Minister of Home Affairs Leon Schreiber insists that if South Africa wants a digital economy, this is the cost of doing business.

Killing progress in the name of?

TymeBank's CEO, Coenraad Jonker, appeared prepared for this.

"This threatens financial inclusion, digital transformation...