In this episode of ITWeb TV, Lincoln Mali, CEO of Lesaka Southern Africa, talks about how the company grew from a struggling operation to a fintech powerhouse, and how its acquisition of Bank Zero will unlock new digital banking opportunities for customers.
Lesaka Technologies’ acquisition of Bank Zero is expected to significantly strengthen the fintech group’s position in the financial services market, and boost its balance sheet, says Lesaka Southern Africa CEO Lincoln Mali.
In June, the fintech group announced it will acquire 100% of the issued ordinary shares of Bank Zero for R1.1 billion, subject to regulatory approvals.
Last month, the Competition Tribunal unconditionally approved the merger.
In a wide-ranging interview with ITWeb TV, Mali highlighted the strategic value of the acquisition, explaining the deal will combine Lesaka’s reach with Bank Zero’s technology and expertise for greater financial inclusion.
Lesaka’s acquisition of Bank Zero seeks to bring new banking solutions and talent to its 120 000 merchant customers and 1.9 million customers, he noted.
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“This is not just about buying a bank; it’s about bringing incredible talent, expertise and technology into the Lesaka ecosystem.
“This acquisition allows us to provide a full spectrum of financial services, from transactional banking accounts to loans, while leveraging our existing distribution network.
“The acquisition is also expected to improve Lesaka’s balance sheet by providing access to bank deposits, reducing funding costs by roughly R1 billion, and enhancing profitability. It’s a transformative step that will change the Lesaka of tomorrow.”
Bank Zero’s founders are joining Lesaka as material shareholders, aligning their vision with the company’s future.
Lesaka’s business has traditionally focused on underserved consumers, particularly grant beneficiaries, as well as micro-merchants and SMEs.
Through its former subsidiary Cash Paymaster Services and now via its EasyPay Everywhere consumer platform, Lesaka provided the infrastructure to deliver and service SASSA social-grant payments (payment processing, beneficiary accounts/cards and transactional services), and later offered additional low-value financial products to those beneficiaries.
Lincoln Mali, CEO of Lesaka Technologies Southern Africa.
With Bank Zero, Lesaka plans to expand its offerings to a broader consumer base and integrate banking services with its existing digital and merchant solutions, Mali explained.
Discussing fintech trends, Mali is of the view that SA’s fintech sector is entering its most disruptive era yet.
A few years ago, only 3% of the world’s top acquirers were non-banks. Today it’s 57%, he pointed out.
“The lines are blurred. Retailers, banks, telecoms and fintechs − nobody is staying in their lane. South Africa’s regulatory framework is on the cusp of change. When it shifts, transactions will migrate from traditional banks to fintechs − or to the banks that respond fast enough.”
Before Lesaka, Mali spent 20 years at Standard Bank in roles that spanned low-income banking, cards and payments, African markets, and retail distribution.
Mali discussed Lesaka’s trajectory, detailing how the company grew from a struggling operation to a fintech powerhouse.
“When I joined, the company was in trouble. It was burning more than R500 million a year, we were lossmaking, and we had a challenged reputation,” Mali recalled.
What followed after he joined the company as CEO in 2021, has become one of the most rapid fintech reconstructions in SA, he pointed out.
Lesaka rebranded, restructured and went on an acquisition trail. The company completed the acquisition of Adumo, a South African payments processor, in October 2024. In February 2024, the group acquired software-as-a-service solutions firm Touchsides from Heineken SA for an undisclosed sum.
Lesaka also completed the acquisition of Recharger, a prepaid electricity metering and payments business with over 460 000 registered meters, in March 2025.
According to Mali, these acquisitions are part of its strategy to expand its market share and create a vertically-integrated fintech platform serving consumers and merchants across Southern Africa.
“We’ve become a formidable platform that is generating cash, that is profitable, and is now the largest fintech player in Southern Africa,” commented Mali.
Lesaka’s customer base today spans almost two million consumers, many of whom are unbanked grant recipients, and a wide variety of merchants from spaza shops to mid-sized businesses.
“We’re able to open an account in a township or rural area in five minutes and give a customer a card through biometrics,” Mali added. “We lend up to R4 000 to clients that the banks won’t touch, and we offer funeral cover. All of these things bring dignity to people.”
Now with 3 800 employees, a strengthened board, a soon-to-be-expanded banking arm, and a fast-growing footprint, he believes the company is ready for its next chapter.
“We’ve said to our staff: this is not the finishing line − it’s the starting block. We are now building a formidable team across the group. And we are doing exactly what we set out to do: democratise financial services for everyone.”
