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South Africa’s fintech and digital banking space is entering a new chapter as Bank Zero reached the end of era with a new acquisition approval that has just been secured by Lesaka Technologies from the South Africa’s Competition Tribunal (SACT).
This is more like a merger and the merger blends a fast-growing financial technology group with one of South Africa’s most modern, app-only banks—bank that has positioned itself as a low-cost challenger bank to disrupt traditional banking models.
Lesaka Technologies receives regulatory approval to acquire Bank Zero in a deal valued at $63.8 million—that is about R1.1 billion. The transaction is one of the most significant "fintech-to–bank" merger in the country in recent years.
Lesaka is a South African-based fintech and financial services group that operates across payments, merchant services, micro-lending, and digital financial tools. Bank Zero, on the other hand, is a fully digital, branchless, app-based bank launched in 2021.
The bank is known for its ultra-low-fee banking, advance patented card technology, a strong corporate client base, and its founders which includes former FNB CEO Michael Jordaan and banking systems specialist Yatin Narsai.
Lesaka-Bank Zero's $63.8 Million Deal
In June 2025, Lesaka unveiled its plan to buy Bank Zero for R1.1 billion. The agreement of the deal implies that after the deal is finalized, Lesaka will have full control (100% ownership) over Zero Research, the parent company of Bank Zero. The acquisition values Bank Zero at $63.8 million, making the bank part of Lesaka fintech ecosystem.
Now, Lesaka becomes a fully integrated fintech–banking group that controls both its financial technology and the regulated banking infrastructure. The deal gives Lesaka a full banking licence, allowing it to offer advanced financial products directly without any third-party service. Bank Zero, on the other hand, gains scale, distribution, and capital, especially to reach more merchants and businesses.
Bank Zero's Acquisition's Regulatory Approvals
The deal between Lesaka Technologies and Bank Zero has got approval from some—but not all—required regulators. The merger or acquisition has been approved by the South Africa’s Competition Tribunal, and some financial regulatory authorities.
These approvals confirm the transaction poses no competition issues and fits within the country’s regulatory framework. But the merger still need sign-off from Prudential Authority—a division of South African Reserve Bank, SARB.
In addition to that, approval under South Africa’s exchange-control regulations—Exchange Control Authorities—is also outstanding.
Therefore, the merger is partially approved but the competition hurdle—which is a major milestone in the acquisition process—is cleared. Regulatory greenlights from prudential banking regulators and exchange-control authorities will formally close the deal.
However, once all the regulatory approvals are secured and the deal is formally closed, Lesaka will begin the integration of systems, customers, and banking operations. The company will outline new product offerings that combine the bank with its fintech services. Meanwhile, it's also worth noting that customers of both companies can experience disruptions during the integration processes.
Lesaka’s acquisition of Bank Zero for $63.8 million is a strategic move that transforms it from a fintech operator into a full-fledged digital banking powerhouse. The deal promises cheaper services, better merchant banking, and a more competitive South African financial ecosystem.
