The global fintech company Wise has received conditional approval from the South African Reserve Bank (SARB) to operate as a “Category 2 Authorised Dealer in Foreign Exchange with Limited Authority,” paving the way for its launch in Africa’s most developed financial hub.
Why it Matters
- Market Entry: This conditional approval is Wise’s first in Africa and grants the London-listed firm permission to offer its international money transfer services to personal customers in South Africa.
- High-Volume Market: South Africa is characterized by high cross-border payment volumes, strong digital adoption, and a large diaspora community, making it a strategically important market for global remittances.
- Solving Pain Points: Wise aims to disrupt a market where fees remain high, transparency is poor, and transaction times are slow, issues the company believes its model can resolve.
The Details
- Regulatory Clearance: Securing approval from the SARB is a “significant step” in Wise’s African ambitions, according to Nadia Costanzo, Wise’s director of banking and expansion for Latin America & the Middle East and Africa.
- The Wise Model: Unlike traditional banks and remittance providers, Wise uses the real “mid-market” exchange rate (without hidden markups). Customers pay a small, upfront fee displayed before completing a transaction, directly supporting the G20’s roadmap for more transparent cross-border payments.
- Political Nod: UK Prime Minister Keir Starmer welcomed the expansion, stating it strengthens ties with the dynamic economy and highlights “British excellence” in financial technology.
- Underserved Customers: Costanzo noted that many South Africans remain underserved, facing high costs and inconvenient processes despite being digitally savvy.
- Global Footprint: Founded in 2011, Wise is a major global player, having processed £145 billion in international transfers for around 15.6 million customers in its 2025 financial year.
What’s Next
Wise did not confirm a go-live date but stated it plans to continue engaging with the central bank as South Africa modernizes its regulatory framework.
The SARB approval brings the company closer to launching in one of the continent’s most strategically important markets.
Source: TechCentral
