UK fintech company Wise has secured conditional approval from the South African Reserve Bank, a pivotal step that marks its first expansion into the African continent. This regulatory clearance grants Wise the status of a Category 2 Authorised Dealer in Foreign Exchange with Limited Authority, enabling the company to offer international money transfer services to personal customers within South Africa.

This development is set to transform cross-border payments in the country, where many individuals currently face high charges, slow settlement times, and a lack of transparency in pricing when transferring funds internationally. With Wise's entry, South Africans will soon be able to send money abroad using the real mid-market exchange rate, accompanied by a small and clearly communicated upfront fee. While a specific launch date has not yet been announced, this approval brings Wise significantly closer to establishing its presence in one of Africa's most active financial markets.

Wise's conditional approval aligns with South Africa’s commitment to the G20 Roadmap for Enhancing Cross-Border Payments, a global initiative designed to improve the speed, transparency, and cost-efficiency of international transactions by 2027. Wise's business model, which eliminates hidden markups and provides users with exact fee disclosures before any transfer is completed, directly supports these G20 targets.

The expansion is also crucial for millions of South Africans who rely on international remittances for various essential needs, including education, healthcare, supporting business operations, and providing for their families. Many of these individuals have historically depended on traditional banks and legacy remittance companies that often utilize non-transparent exchange rates and protracted processing times.

Officials from both the UK and South Africa have welcomed this strategic move. UK Prime Minister Keir Starmer commented on the approval as a development that strengthens financial ties with one of Africa’s most robust economies and underscores the global competitiveness of UK fintech innovations.

Wise’s imminent entry is expected to catalyse several significant shifts within South Africa’s remittance and broader digital finance market, especially as regulatory reforms continue to advance. These anticipated changes include lower transfer fees for individuals sending money abroad, greater transparency in exchange rates displayed before each transaction, faster delivery times for transfers, particularly in high-volume corridors, and increased competition among existing banks and remittance companies as they adapt to Wise’s pricing model. Furthermore, the central bank is likely to implement further regulatory adjustments to modernize frameworks and foster the growth of new financial technologies.

With an impressive track record, Wise processed £145 billion in cross-border transfers for 15.6 million customers during its 2025 financial year, solidifying its position as one of the world’s leading digital money transfer platforms. Its strategic move into South Africa signifies the initial phase of a broader African expansion, commencing in a region where the demand for more affordable and faster cross-border payment solutions remains exceptionally high.