Lesaka to acquire Bank Zero for $67m as fintech customer base hits 2 million

South African fintech company Lesaka Technologies has agreed to acquire Bank Zero for about $67m (R1.1bn), in a deal that will give it full ownership of the digital bank and expand its financial services offering.

The transaction, announced in June 2025, involves Lesaka acquiring 100 per cent of Bank Zero’s issued ordinary shares through a combination of newly issued Lesaka shares and up to R91m ($5.55m) in cash.

Bank Zero currently has about 100,000 customers. Following the acquisition, it will gain access to Lesaka’s distribution network, which serves about two million retail customers and 125,000 businesses.

The deal comes as Bank Zero reaches a key stage in its growth. The digital bank became profitable four years and 10 months after launching in October 2021, positioning it to move from establishing its business model to expanding its operations.

For Lesaka, the acquisition will provide its growing customer base with access to banking services through its own banking infrastructure.

The fintech currently provides services including insurance, microloans and payment processing to consumers and small businesses, particularly underserved segments. Its EasyPay Everywhere service uses African Bank to provide customers with basic transactional accounts.

With Bank Zero under its ownership, Lesaka could reduce its reliance on third-party banking infrastructure while expanding the range of financial products available to its customers.

The companies also see opportunities in South Africa’s informal economy, estimated at about R1tn ($60.95bn), where Lesaka already has a significant presence.

Bank Zero is seeking regulatory approval to expand into lending and broaden its authorised dealer licence to facilitate offshore business payments and remittances.

Bank Zero Chief Executive Officer Yatin Narsai said the transaction was expected to generate more than R100m ($6.1m) in synergies and would create opportunities for the digital bank to enter the lending market by leveraging Lesaka’s existing capabilities.

The acquisition has received unconditional approval from South Africa’s competition authorities.

However, approval from the Prudential Authority and exchange control approval from the South African Reserve Bank are still required before the transaction can be completed.

Lesaka expects the remaining regulatory conditions to be satisfied by December 2026.

Once completed, the acquisition will combine Bank Zero’s digital banking platform and newly established profitability with Lesaka’s extensive customer and merchant network, creating a broader platform for financial services expansion in South Africa.