For years, South Africa’s financial ecosystem has been a fortress: highly developed, robust, but notoriously difficult for non-bank fintechs to penetrate deeply. That dynamic is shifting rapidly.

In a concerted week of activity, three major UK-based financial institutions — Wise, Revolut, and EBC Financial Group — have solidified their footholds in the country. The timing is not coincidental. It aligns with the South African Reserve Bank’s (SARB) Vision 2025 modernisation agenda and a renewed trade strategy from the UK government, underscored by Prime Minister Keir Starmer’s recent visit to Johannesburg.

Here is what is driving the “Great Trek” of UK fintechs south.

The Regulatory Thaw: Opening the NPS

The biggest barrier to entry in South Africa has historically been access to the National Payment System (NPS). Previously, clearing and settlement were the exclusive domain of traditional banks, forcing fintechs to “rent” BINs (Bank Identification Numbers) or partner with incumbents.

However, SARB is currently dismantling this barrier under its Payments Ecosystem Modernisation (PEM) programme.

In early 2025, SARB published a Draft Directive allowing non-bank fintechs to access the NPS directly, provided they meet specific governance, capital, and risk protections.

• The Shift: The new framework applies a “proportionality principle.” Fintechs are subject to rigorous standards — segregated client funds, strong AML (Anti-Money Laundering) protocols, and cybersecurity mandates — but are not crushed by the full weight of banking regulations unless they pose a systemic risk.
• The Impact: This allows fintechs to offer e-wallets, clearing, and third-party payment services without necessarily acting as a bank.

The New Entrants

Three distinct UK players have made latest moves, targeting different slices of the South African market.

1. The Remittance Disrupter: Wise

London-listed Wise has secured conditional approval from SARB to operate as a “Category 2 Authorised Dealer in Foreign Exchange with Limited Authority.” This is Wise’s first regulatory green light in Africa.

• The Play: South Africa is the continent’s most developed financial hub but suffers from high cross-border fees and opaque pricing. Wise intends to deploy its “mid-market” rate model to undercut traditional banks.
• The Quote: “Many South Africans remain underserved when sending money abroad,” says Nadia Costanzo, Wise’s director of banking and expansion. “They face high costs and poor price transparency.”

2. The Banking Challenger: Revolut

While Wise is focusing on payments, Revolut is aiming for the whole stack. The company confirmed it has submitted its Section 12 application — the formal process under the Banks Act to establish a full-fledged bank in South Africa.

To navigate the complex local political and economic landscape, Revolut has appointed Dr. Gaby Magomola — a banking veteran and former CEO of African Bank — as Chairman of Revolut South Africa.

• Why it matters: Magomola is viewed as a father of economic transformation in the region. His appointment signals that Revolut is not just launching an app, but attempting to integrate deeply into the local financial fabric. Jacques Meyer, CEO of Revolut SA, noted that Magomola’s counsel will be “critical in navigating the local regulatory environment.”

3. The Trading Specialist: EBC Financial Group

EBC Financial Group has received approval from the Financial Sector Conduct Authority (FSCA) as an Authorised Financial Service Provider. While established in London, the group has a global presence with offices in other major financial hubs like Tokyo, Sydney, Singapore, and Hong Kong.

• The Market: EBC is targeting South Africa’s sophisticated trading community, which has high internet penetration (76%) and a strong appetite for commodities and indices.
• The Strategy: EBC is differentiating via education, leveraging partnerships with the University of Oxford’s Department of Economics to offer financial literacy programs alongside its trading execution platforms.

The Diplomatic Catalyst

These private sector moves are being greased by high-level public sector diplomacy. Ahead of the G20 leaders’ summit, UK Prime Minister Keir Starmer recently announced a package of economic partnerships in Johannesburg designed to link the UK and SA tech ecosystems.

The “Launchpad” Initiative Starmer announced a partnership between the UK government and the Johannesburg Stock Exchange (JSE). The goal is to solve the “liquidity trap” many African startups face — where they cannot find local exit routes.

• What it offers: Selected startups will receive training on public governance and streamlined access to the JSE’s Alternative Exchange (AltX) and Private Placements Platform (PPP).

Capital Injection In a move to de-risk early-stage ventures, the UK has partnered with mining giant Anglo American to launch an SME support scheme. The UK government is committing over R100m (approx. £4.3m) to this fund, aiming to unlock a further R500m in private finance.

AI Collaboration A third pillar involves a partnership with partially state-owned telco Telkom to create an AI accelerator. This suggests a move by Telkom to transition from a pure connectivity provider to a “techco” platform for deep-tech startups.

The Bottom Line

South Africa represents a “goldilocks” market for UK fintechs: it has a regulatory framework similar enough to the UK’s (FCA) to be navigable, a time zone alignment that suits London operations, and a consumer base that is digitally mature yet underserved by legacy banks.

However, the “rush” is not without risk. SARB’s new directives are stringent. The draft guidelines released by Webber Wentzel highlight that while the door is open, the compliance burden for “payment activities” regarding data protection and capital requirements is heavy.

Furthermore, UK fintechs are entering a market with formidable local incumbents. South Africa’s “Big Five” banks are among the most technologically advanced in the world, and local challengers like TymeBank and Bank Zero have already captured significant market share.

As David Barrett, CEO of EBC Financial Group (UK), noted, “South Africa’s traders are sophisticated and globally minded.” The same applies to its regulators and its competitors. The door is open, but the competition inside is fierce.