South Africa’s Department of Home Affairs has secured a legal and policy victory after the Association of Communications and Technology NPC (ACT) withdrew its court challenge against steep increases in fees for accessing the National Population Register.

The dispute centred on the department’s Online Verification Service (OVS), which is used by banks, mobile operators, and other institutions to verify customer identities against government records.

ACT launched a High Court review in December 2025 seeking to overturn the new pricing structure, which came into effect in July 2025. The revised fees increased the cost of identity verification from 15 cents to R10 per query, although off-peak rates drop to R1.

Home Affairs Minister Leon Schreiber defended the increase, arguing that the previous pricing model had remained unchanged for more than a decade and was no longer sustainable. He said rising infrastructure and maintenance costs had left the system underfunded, contributing to long-standing downtime issues.

ACT had warned that the sharp increase would significantly raise compliance costs under regulations such as RICA, potentially affecting banks, telecommunications companies, and ultimately consumers.

Despite filing papers in the Gauteng High Court, the organisation has now withdrawn its application, marking a shift in the industry’s approach to the policy.

According to Schreiber, several mobile network operators within ACT have since engaged with the department to explore collaboration on digital identity systems and broader government digitisation efforts.

The Department says upgrades to the OVS have already improved system uptime to around 99%, enabling faster identity checks and supporting real-time verification.

The developments form part of a wider push toward a national digital identity framework, including partnerships with banks to expand access to services such as Smart ID applications. Home Affairs services are now available at over 110 bank branches nationwide, with further expansion planned.

Some industry players, including GoTyme Bank and Tyme Group, had previously criticised the fee increases, warning of cost pressures on financial inclusion initiatives. However, engagement between stakeholders has since continued, with a shift toward cooperation on system improvements.

The outcome signals a broader realignment between government and industry on digital identity infrastructure and verification systems.