• Wise, a UK fintech, has received conditional approval to operate directly in South Africa, marking the company’s first regulated, on-the-ground presence and local licence in any African market.

• South Africa’s remittance market is growing fast. It’s expected to reach $415.40 million by 2033, driven by digital adoption.

• Wise enters a competitive space. Rivals include Mukuru and Mama Money.

UK fintech Wise announced on December 1 that it has received conditional regulatory approval to launch direct operations in South Africa, marking the company’s first local licence and regulated presence on the African continent. The approval, granted by the South African Reserve Bank (SARB), permits Wise to operate as a Category 2 Authorised Dealer in Foreign Exchange with Limited Authority (ADLA), enabling it to offer cross-border money transfer services to individuals in the country using local South African rand (ZAR) accounts.

Nadia Costanzo, Director of Banking and Expansion LatAm & MEA at Wise, said: “South Africans are among the most digitally savvy consumers on the continent, yet many still face high costs, poor price transparency, and slow, inconvenient processes when sending money abroad. Our first regulatory approval in Africa marks a significant step forward in our mission to give South Africans access to a faster, cheaper, and more transparent way to send money abroad.”

Wise operates as a fully digital platform that simplifies international money transfers by using the real mid-market exchange rate without any hidden markups, the company reveals. Behind the scenes, it uses an innovative peer-to-peer system: when a user sends money, it’s paid into Wise’s local account in the sender’s country, and then an equivalent amount is paid out from Wise’s local account in the recipient’s country. This method avoids costly international transfer fees and speeds up the process.

Wise’s entry into the South African market directly targets long-standing inefficiencies in cross-border payments. A joint IMF–World Bank technical assistance report from August 2024 revealed that remittance costs on the South Africa–Zimbabwe corridor remain as high as 12.7 %—well above the G20 Roadmap target of reducing global remittance costs to 3 % by 2027. This is especially concerning given the corridor’s importance within the SADC region, where remittances account for 9.6% of Zimbabwe’s GDP, underscoring the critical role of affordability and accessibility for economic resilience.

This momentum coincides with South Africa’s broader payment transformation. According to the consulting firm IMARC Group, the country’s remittance market reached USD 243.88 million in 2024 and is projected to grow to USD 415.40 million by 2033, reflecting a compound annual growth rate (CAGR) of 5.47% between 2025 and 2033. This growth is driven by the increasing adoption of digital remittance services, supported by widespread smartphone usage and enhanced internet connectivity, which make cross-border transfers more accessible and efficient. Wise is well-positioned to capitalise on this shift.

Wise joins key players in the South African remittance market, including Mukuru and Mama Money. In August 2025, Capitec Bank also partnered with Mama Money to launch an in-app cross-border transfer service, designed to simplify remittances for South Africa’s migrant community. The service uses a 12-digit token system that allows recipients to collect cash without needing a bank account.

Hikmatu Bilali