South Africa’s digital banking landscape is set for a dramatic transformation as Lesaka Technologies, a U.S.-listed fintech group with deep operations in South Africa, moves to acquire Bank Zero, the app-only mutual bank co-founded by former First National Bank CEO Michael Jordaan and Yatin Narsai.
The deal, valued at approximately $60 million (R1.1 billion), has already received approval from the Competition Commission, clearing a key regulatory hurdle Business Insider Africa. Under the terms of the agreement, Bank Zero shareholders will receive a 12% stake in Lesaka Technologies, alongside a cash payout of about $5 million TechCabal.
Michael Jordaan, who has been instrumental in shaping South Africa’s digital banking revolution, will join Lesaka’s board, while co-founder Yatin Narsai is expected to take an executive role within the merged entity Business Insider Africa.
Founded in 2018, Bank Zero positioned itself as a disruptive force in South African banking, offering zero-fee banking services through a mobile-first platform. Its acquisition by Lesaka is seen as a strategic move to bolster Lesaka’s ambitions in retail banking, allowing it to compete more aggressively with established neobanks such as TymeBank and Discovery Bank launchbaseafrica.com.
Industry analysts say the merger could reshape South Africa’s fintech ecosystem by combining Lesaka’s fintech infrastructure with Bank Zero’s innovative digital banking model. The deal also underscores the growing appetite for consolidation in Africa’s financial technology sector, as firms seek scale and resilience in a competitive market.
For customers, the acquisition promises expanded services, deeper integration of fintech solutions, and potentially more competitive offerings in the digital banking space. However, observers caution that execution will be key, as Lesaka must balance innovation with regulatory compliance and customer trust.
