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Image: Wise
Global fintech firm Wise has just cleared a major regulatory hurdle: it received conditional approval from the South African Reserve Bank (SARB) to operate as a Category 2 Authorised Dealer in Foreign Exchange with Limited Authority (ADLA).
This marks Wise’s first fully licensed operation on the African continent, a milestone with big implications.
The licence will allow Wise to offer its hallmark service: low-cost, transparent international money transfers to personal customers.
South Africa stands out as an especially strategic debut for Wise. As the continent’s most financially developed economy, it channels large volumes of cross-border payments, from diaspora remittances and international student fees to business trade and contracting.
Yet the legacy system is often opaque and expensive: high fees, hidden exchange-rate markups, and slow processing still plague transfers. Wise argues its platform can fix many of those issues.
Instead of padding currency conversion rates with secret markups, Wise applies the real “mid-market” exchange rate, combined with a small, upfront fee, shown clearly before users confirm their transfer.
From a macroeconomic angle, this move also aligns with global momentum around cross-border payments.
South Africa, as a member of the G20, has pledged support for the G20 Roadmap for Enhancing Cross-Border Payments, a plan to make global transactions faster, cheaper and more transparent by 2027. Wise says its model supports those objectives by reducing friction for end users.
It’s not yet clear exactly when Wise will go live in South Africa, but given the market dynamics and growing demand, the potential upside is substantial.
Wise isn’t the only game in town. Several fintechs, remittance services and traditional banks already provide international transfer services, though many with varying trade-offs in fees, speed and transparency.
| Service / Company | What they do (relative to Wise) |
| WorldRemit | Offers online global money transfers to SA and other countries; allows users to send money from a smartphone or computer to bank accounts or cards overseas. |
| Mama Money | An app-based remittance service lets South Africans send money to bank accounts and mobile wallets in dozens of countries across Africa, Asia and Europe; cash-out or wallet options depending on the destination country |
| Shyft | Combines foreign-exchange purchases, virtual/physical prepaid cards for online/in-person shopping, and cross-border transfers. Also supports offshore-account management, which can appeal to users needing flexible FX access. |
| Smaller players & remittance-focused services | Services like inward remittances from South Africa to SADC countries via cash-to-cash, mobile wallets or retail-agent networks. For example, some operators partner with mobile-money services in neighbouring countries to facilitate remittances. |
Transparency: Unlike many banks or older remittance services that factor hidden markups into FX rates, Wise pledges to use the real “mid-market” rate plus a clearly displayed fee. That clarity is a big differentiator.
Potentially lower cost: With fewer overheads than legacy banks or remittance networks, and pricing designed for volume and scale, Wise may undercut many existing providers, especially for regular overseas transfers.
Speed and simplicity: Because Wise is built as a digital-first platform, transfers could be faster and more user-friendly than many existing bank-dependent or cash-agent-based remittances.
Meeting a growing need: With a large diaspora, frequent cross-border business, and increased digital adoption in South Africa, there’s clear demand for better, cheaper international money-movement tools.