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British financial technology company Wise, formerly known as TransferWise, has received a "conditional regulatory approval" from the South African Reserve Bank (SARB) to launch its remittance transfer service to "personal customers" in South Africa. The fintech will operate as a Category 2 Authorised Dealer in Foreign Exchange with Limited Authority (ADLA).
A Category 2 Authorised Dealer in Foreign Exchange with Limited Authority (ADLA) is a licence issued by the South African Reserve Bank that allows a company to legally offer foreign-exchange services, but with certain limits. With this licence, Wise is now allowed (conditionally) to buy and sell foreign currency, process cross-border payments, offer international money transfers, and provide forex services to customers.
However, these services are still limited within specific rules and limits set by the South African central bank. The conditional regulatory approval paves the way for Wise to expand into the South African market, marking its first-ever regulatory approval in Africa. South Africa is part of the G20, and Wise entering its market helps the country meet the G20 promises and objectives.
The G20 (Group of Twenty) is a forum where the world’s major economies come together to discuss global economic issues, financial stability, trade, climate, and development. The group also agrees to improve how money moves across their borders by making international remittance transactions more transparent, cheaper, faster, and seamless by 2027.
There are 19 countries plus the European Union (EU) in the G20, making it 20 members in total. The 19 countries are: Argentina, Canada, China, Australia, France, Brazil, Germany, Mexico, India, Saudi Arabia, Japan, South Korea, Russia, Indonesia, Turkey, Italy, the United States (US), South Africa, and the United Kingdom (UK).
Wise's launch in South Africa supports the part of the G20 plan that focuses on giving customers clear and transparent information about fees, exchange rates, and how their money moves.
Notably, the Category 2 Authorised Dealer in Foreign Exchange with Limited Authority (ADLA) licence is the necessary foundation for Wise to fully operate within South Africa's strict foreign exchange control environment. This regulatory green light is the final major step before going live, but an exact launch date is not yet confirmed.
While the ADLA licence limits Wise's offerings to personal transfer services in South Africa, the fintech's global mission is to roll out its full product suite over time. With time, when more advanced regulatory licences are secured, South Africans can expect Wise's Multi-Currency Wallet that gives users the ability to hold and convert over 40 different currencies in one account.
Wise Debit Card — a physical card to spend and withdraw cash in over 160 countries at the mid-market exchange rate — and Wise Business Accounts — that support SMEs, including multi-currency invoicing, team management, and integration with accounting software — can also be introduced in South Africa when more advanced regulatory licences are secured.
But for now, the fintech's operation in South Africa is still limited, and the company's entry is also expected to disrupt the cross-border payment market in the country, forcing traditional banks (like FNB, Standard Bank, and many others) to review their high fees and slow transfer times. In addition to that, Wise will be competing directly with existing remittance services like Mukuru and Mama Money, as well as the newly launched cross-border transfer services offered by commercial banks—like Capitec's partnership with Mama Money.
