South African motorists are facing fewer choices when renewing vehicle licence discs online, while the cost of one of the country’s major digital renewal services has returned to a higher standard rate.
The shift follows the launch of the Road Traffic Management Corporation’s (RTMC) online renewal platform in 2022. The government-backed service has changed the competitive landscape for private companies that previously charged motorists extra to handle licence renewals on their behalf.
For years, private providers found a market among motorists frustrated by long queues, administrative delays and allegations of corruption at Driving Licence Testing Centres (DLTCs). Paying a service fee allowed vehicle owners to avoid visiting a testing centre and complete much of the process remotely.
Several companies have since withdrawn from the market, including Shoprite, PayCity, Pick n Pay and the South African Post Office.
The RTMC service charges R99, making it difficult for third-party providers to compete on price. However, FNB has continued offering its own service while also acting as a payment gateway provider for the RTMC platform.
FNB says demand remains strong after price increase
FNB reduced its own licence disc renewal fee from R199 to R99 in 2023, before introducing a promotional rate of R69 in 2024.
The R69 offer was extended several times but eventually ended on 30 June 2026. The standard R99 fee returned on 1 July.
Despite the increase, FNB says customer demand has remained resilient.
FNB CEO Clair Brenner said the bank had not recorded a material decline in usage since standard pricing was reinstated. She said the figures suggested that customers continued to place considerable value on the convenience of completing the renewal process digitally.
The service also allows FNB customers to use eBucks towards the cost of their renewal.
According to Brenner, FNB customers completed approximately 224,000 licence disc renewals through the service during 2025. Customers redeemed about R10.8 million worth of eBucks towards these transactions, accounting for approximately 8% of all payments made through FNB’s renewal service.
The bank said its Nav»Car platform also provides motorists with additional functions, including traffic fine payments, vehicle valuation features and licence renewal reminders.
The continued demand comes despite the fact that motorists now have fewer private alternatives than they did several years ago.
The reduction in third-party services also reflects the broader shift towards government-supported digital services, following years in which private companies stepped in to address problems associated with the traditional renewal process.
Proposed RAF levy could add further costs
The cost of renewing a licence disc could come under further pressure if a proposed new levy to support the Road Accident Fund (RAF) is introduced.
Transport Minister Barbara Creecy said in May 2026 that her department was considering a new charge as South Africa’s vehicle market gradually shifts towards electric vehicles.
The RAF is currently funded largely through a levy incorporated into the price of petrol and diesel. Electric vehicle owners do not contribute to this revenue stream in the same way because they do not purchase petrol or diesel.
Creecy has warned that a growing electric vehicle market could eventually reduce fuel sales and therefore the revenue available to the RAF. Her proposal would introduce a transitional levy linked to licence disc renewals to help protect the fund’s finances during the transition.
The proposal has, however, attracted criticism from the motoring sector.
Automobile Association of South Africa CEO Bobby Ramagwede argued that the relatively slow pace of electric vehicle adoption did not adequately justify an additional charge on motorists. He said the RAF’s financial difficulties pointed instead to deeper operational and management problems.
Ramagwede also questioned the long-term model of the RAF, arguing that compulsory third-party insurance could potentially provide a similar form of protection.
For motorists, the developments highlight a changing licence renewal market. Online renewals remain more convenient than many traditional processes, but the number of providers has declined, while the prospect of an additional RAF-related charge could make the overall cost of keeping a vehicle legally licensed higher in the future.
Source: MyBroadband