UK-based fintech Wise to launch in South Africa following Reserve Bank approval

UK fintech company Wise has secured conditional approval from the South African Reserve Bank to begin operations in the country, setting the stage for its first expansion into Africa. The approval grants Wise the status of a Category 2 Authorised Dealer in Foreign Exchange with Limited Authority, enabling it to offer international money transfers to personal customers.

The license means South Africans will soon be able to send money abroad through Wise at the real mid-market rate and a small upfront fee. This comes at a time when many people in the country still face high charges, slow settlement times, and unclear pricing when transferring funds across borders.

Wise’s approval comes amid growing cross-border payment activity in South Africa, supported by a large diaspora community and strong digital adoption. Although the company has not confirmed a launch date, the licence brings it significantly closer to entering one of the continent’s busiest financial markets.

Opening a new corridor for cross-border money movement

The conditional approval strengthens South Africa’s commitment to the G20 Roadmap for Enhancing Cross-Border Payments. This is a global effort to improve the speed, transparency, and cost of international transactions by 2027. Wise’s model aligns with these targets by removing hidden markups and showing users the exact fees before completing a transfer.

The company’s expansion is also significant for millions of South Africans who rely on international remittances for education, healthcare, business operations, and family support. Many currently depend on banks and legacy remittance companies that use non-transparent exchange rates and long processing times.

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Officials from both countries have welcomed the move. UK Prime Minister Keir Starmer described the approval as a development that deepens financial ties with one of Africa’s strongest economies and highlights the global competitiveness of UK fintech.

What South Africans should expect next

Wise’s entry is expected to trigger several shifts in South Africa’s remittance and digital finance market, especially as regulatory reforms continue:

• Lower transfer fees for individuals sending money abroad.
• More transparent exchange rates, displayed before each transaction.
• Faster delivery times, especially for high-volume corridors.
• Increased competition among banks and remittance companies as they respond to Wise’s pricing model.
• Regulatory adjustments as the central bank modernises frameworks to support new financial technologies.

Wise processed £145 billion in cross-border transfers for 15.6 million customers in its 2025 financial year, making it one of the world’s largest digital money transfer platforms. Its move into South Africa signals the beginning of a broader African expansion, starting in the region where demand for cheaper and faster cross-border payments remains high.