TymeBank’s Appeal Against ID Verification Fee Increase
Natalie Nyathi
TymeBank founder and CEO Coenraad Jonker has reached out to Minister of Home Affairs Leon Schreiber, urging him to reconsider a significant increase in fees for identity verification services, set to take effect on July 1, 2025. Jonker warns that this 6,500% hike could harm financial access for millions of South Africans.
He points out that the fee increase will affect TymeBank’s ability to serve its 11 million customers, many of whom rely on social grants or informal earnings. Currently, the cost for identity verification is just 15 cents per check, allowing the bank to offer essential services without monthly fees. The new fee of R10 per check would make it difficult to maintain these services for low-income individuals.
“Your new fee will make this impossible, robbing South Africa of its only accessible and free bank account,” Jonker states, calling the decision an anti-poor policy.
Jonker also compares South Africa’s current pricing to that of other countries, noting that at 2 US cents per identity lookup, it is competitive with nations like Panama and Colombia. However, the proposed increase would make South Africa one of the most expensive countries for identity verification, nearly double the costs of countries like Pakistan and Ecuador.
He argues that identity verification should be treated as a public good and that shifting the financial burden onto the vulnerable is unfair. “Identity verification is a public good. Yet here, when our country needs inclusivity and trust, we choose exclusion,” he says.
Jonker raises concerns about the reliability of the current ID verification system, which is down 50% of the time. He criticizes the plan to increase fees without first addressing these issues, stating that essential services must be reliable and affordable to maintain public trust.
To promote fairness and sustainability, Jonker proposes several measures, including a consultative process with stakeholders, a phased fee structure, volume-based pricing, a cost recovery model linked to performance, reasonable notice periods for planning, and a focus on safeguarding South Africa’s identity ecosystem.
He emphasizes that digital transformation and financial inclusion are vital for a fair society. Jonker calls on the government to pause the fee increase and engage with stakeholders to create a fair ID verification system.
As the deadline approaches, the government’s response will be crucial in shaping the future of digital banking and accessibility in South Africa. TymeBank’s initiative highlights the need for collaboration between the public and private sectors to ensure progress for all citizens.
