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[QUOTE="Munyaradzi Mafaro, post: 46595, member: 636"]
Lesaka Technologies purchased Bank Zero for 1.1 billion rand. Michael Jordaan made the announcement on Thursday. He serves as chairman and co-founder of the digital bank. The deal must receive approval from financial regulators. Both companies expect the merger to create business benefits.

Bank Zero started operations seven years ago as a mobile-only financial institution. The bank has no physical branches and customers use smartphone apps for all transactions. Jordaan founded the company with banking expert Yatin Narsai and five other partners. The institution received its banking license from the South African Reserve Bank during 2018. Bank Zero launched services to the public three years later.

The digital bank currently holds 400 million rand in customer deposits. Card spending reached 415 million rand for the year ending December 2024. Deposits and electronic transfers have grown more than 50 percent from the previous year. Bank Zero expects to become profitable around 2027. The company focused on attracting businesses and wealthy customers rather than mass marketing.

Lesaka will pay for Bank Zero through new company shares and cash up to 91 million rand. Bank Zero owners will receive about 12 percent of Lesaka stock after the deal completes. Jordaan will join the Lesaka board of directors as part of the agreement. Narsai will continue leading Bank Zero as chief executive officer. The transaction requires multiple government approvals before becoming final.
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