South Africa’s Lesaka Technologies (Net1) Pauses Digital Lender Bank Zero Acquisition As Approval Lingers.
Lesaka Technologies ,formerly known as Net1, has extended the deadline for completing its acquisition of digital lender Bank Zero.
The firm is awaiting final regulatory approval from the South African Reserve Bank’s Prudential Authority.
The transaction per TechPoint was announced in June 2025 and was supposed to be signed by June 2026. However, the companies have agreed to push back the long-stop date. This will allow more time for the remaining approvals to be secured.
The delay does not appear to reflect any substantive concerns over the transaction. South Africa’s Competition Commission recommended approval of the acquisition in November 2025, and the Competition Tribunal subsequently cleared the deal. Prudential approval remains the final hurdle before the transaction can be completed.
Under the terms of the agreement, Bank Zero shareholders will receive approximately 12% of Lesaka’s diluted share capital. In addition to this they will also get a cash component of up to ZAR91mn.
Why Acquiring Bank Zero Matters to Lesaka Technologies.
The acquisition marks an important step in Lesaka’s strategy to evolve into a fully integrated financial services group. The company has expanded aggressively through acquisitions in recent years, including its purchase of payments firm Adumo in 2024. Acquiring Bank Zero would provide Lesaka with a banking licence and a digital banking platform, allowing it to fund lending activities through customer deposits rather than relying primarily on wholesale funding.
Get to Know Bank Zero
Bank Zero was founded in 2018 by former First National Bank chief executive Michael Jordaan and banking executive Yatin Narsai, and launched publicly in 2021. The digital-only bank positioned itself around low-cost, app-based banking and advanced security features but struggled to achieve the scale of larger rivals such as TymeBank and Discovery Bank. By 2025, it had built more than 40,000 funded accounts and accumulated around ZAR400mn in deposits.
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The combination reflects a broader convergence between fintech and banking in South Africa. Bank Zero brings a banking licence and technology infrastructure, while Lesaka contributes payment rails, lending products, merchant relationships and a broad customer base. Analysts view the transaction as potentially creating a stronger challenger to established banks in the country.
While investors continue to await the final regulatory sign-off, the extension indicates that both parties remain committed to completing the transaction rather than signalling any breakdown in the deal process.
