UK fintech company Wise has received conditional approval from the South African Reserve Bank to launch operations in the country, setting the stage for its first foray into the African market. This crucial authorization will allow Wise to offer international money transfers to individuals at the real mid-market rate with a small upfront fee, tackling high costs and slow settlement times experienced by many South Africans currently transferring funds abroad.
The company’s entry aligns with growing cross-border payment activity in the nation, driven by a large diaspora community and strong digital adoption. While Wise hasn’t set an exact launch date, this license brings it closer to entering one of Africa’s most active financial markets.
Wise’s approval also bolsters South Africa’s commitment to the G20 Roadmap for Enhancing Cross-Border Payments, aimed at improving international transaction speed, transparency, and cost by 2027. Wise’s approach aligns with these goals by eliminating hidden markups and showcasing users’ exact fees before completing a transfer.
The move benefits millions of South Africans who rely on international remittances for education, healthcare, business operations, and family support. They’ve long faced high charges from traditional banks and legacy remittance companies that use opaque exchange rates and extended processing times.
Both countries have welcomed Wise’s launch. UK Prime Minister Keir Starmer highlighted the decision as a move towards stronger financial ties with South Africa and a sign of the UK’s leading fintech sector.
What to expect from Wise’s entry in South Africa:
– Lower transfer fees for individuals sending money abroad.
– More transparent exchange rates displayed before every 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 modernizes frameworks to support new financial technologies.
With over £145 billion in cross-border transfers processed for 15.6 million customers in 2025, Wise is one of the world’s largest digital money transfer platforms. Its expansion into South Africa signifies a broader African push, targeting regions with high demand for cheaper and faster cross-border payments.