The Department of Home Affairs (DHA) is set to introduce a new pricing structure for its Online Verification System (OVS) starting 1 July 2025. This updated system is designed to restore the National Population Register (NPR), prevent identity fraud, and secure long-term funding for the identity verification services that banks, insurers, and government departments rely on daily.
For over a decade, the system allowed private companies to confirm a person’s identity against the NPR for just 15 cents per transaction.
However, the Department now says this low fee led to serious problems—technical failures, system crashes, and even security risks.
Following an overhaul and successful pilot phase, the new OVS is ready to roll out nationally with two pricing options:
- R10 per real-time verification – for immediate confirmation of identity data
- R1 per field using batch verification – a new, affordable option for non-urgent, bulk checks during off-peak hours
The Department explains that the real-time option is ideal for high-security environments, while the batch verification option helps users save costs when working with large volumes of identity data.
Moreover, the problem, according to the DHA, was that private entities were abusing the system. Some resold identity checks at huge mark-ups while still paying just 15 cents per check, flooding the system with unnecessary requests and creating a major burden on state infrastructure. In some cases, failure rates soared past 50%, leaving government offices—and the public—unable to access the service.
Minister of Home Affairs, Dr Leon Schreiber, described the previous setup as a risk to national security. “Every responsible State on earth must take the necessary steps to ensure a functional population register,” he said.
He added that the new model isn’t about making money. Instead, it’s about stopping abuse, fixing the system, and protecting South Africa’s identity data for the long run.
The changes come at a critical time, as South Africa continues its efforts to get off the Financial Action Task Force grey list and build a secure digital ID framework for the future.
What does it mean to be grey-listed?
If a country is on the grey list, it means:
- Its financial regulations are considered too weak to stop financial crimes effectively.
- It poses a higher risk for international banks and investors.
- It’s under increased monitoring by FATF and must implement a clear action plan to fix the issues.
Why is this bad?
Being grey-listed doesn’t come with direct sanctions, but it hurts the economy in several ways:
- Foreign investment drops – investors become wary of doing business in that country.
- Transaction costs rise – local banks and businesses may face stricter checks or delayed international transactions.
- Global reputation suffers – it’s seen as a risky place for financial activity.
South Africa’s case
South Africa was officially grey-listed by the FATF in February 2023 due to:
- Weak enforcement against money laundering and corruption.
- Poor prosecution of financial crimes.
- Inadequate measures to monitor financial institutions and transactions.
Furthermore, public sector departments will still be able to access the system for free. Private companies, however, must now cover a fair share of the system’s real operating costs.
Entities wanting to connect to the upgraded system or move over from the old one can email [email protected] for assistance.
The pricing changes were officially published in Government Gazette No. 52893 on 23 June 2025, and were developed in consultation with stakeholders and approved by the Minister of Finance.
In closing, the DHA stated that this move is part of a bigger plan to modernise its services and prevent future system failures. By putting proper value on identity verification, the government aims to ensure long-term stability, fair access, and better protection of South Africans’ personal data.
What do you think about the new changes? Let us know in the comments.
