What Bank Zero does

Bank Zero is a South African digital mutual bank operating exclusively as a mobile application with no physical branches or call centres, serving individual consumers, sole traders, SMEs, large businesses, NPOs, and children. Founded in 2018 by former First National Bank executives and launched in August 2021, the company targets all South African market segments with a zero-fee core banking proposition, differentiating itself from the country's incumbent banks (which control approximately 90% of sector assets) through pricing, fraud protection, and digital experience.

The company built its core banking platform from scratch using open-source software running on IBM LinuxONE mainframe infrastructure, achieving direct integration with the South African Reserve Bank's settlement system and national payments infrastructure to operate as a full settlement and clearing bank. Its proprietary technology includes a world-first patented card fraud prevention system, mandatory phone-based authorization for all online card transactions (including non-3DS sites), a drag-and-drop banking interface, real-time transaction notifications without minimum thresholds, multi-level business authorization chains, shared accounts for families and stokvels (savings clubs), QR code payments, and biometric security. The bank holds a Mastercard certification, is a registered financial services provider (FSP No: 50870), and deposits are covered by the Corporation for Deposit Insurance up to R100,000 per legal entity.

Bank Zero generates revenue through a diversified mix despite the zero-fee core model: cash withdrawal fees (R5 at ATMs, R2.50 at till), immediate payment fees to other banks (R6.50-R12), card issuance and delivery fees (R83-R155 once-off), QR receive fees (0.5%), foreign transaction mark-ups (1.8%), value-added service fees (debit order disputes, chargebacks, statement downloads), and net interest income on customer deposits (savings rates from 4.75% to 7.25% depending on balance). Distribution occurs entirely through iOS and Android apps, with additional reach via Apple Pay, Google Wallet, iKhokha POS network integration, Xero accounting integration, and SARB/major retailer cash networks. In June 2025, Lesaka Technologies announced the acquisition of 100% of Bank Zero for R1.1 billion (approximately $61.4 million), with Bank Zero shareholders retaining a 12% stake in the combined entity; the deal received Competition Tribunal approval in November 2025 and remains pending final regulatory clearance with an extended long-stop date of January 31, 2027.

Name

Bank Zero

Legal name

Bank Zero Mutual Bank

Website

http://www.bankzero.co.za

Company type

Private

Founded year

2016

Operating status

Operating

Headcount range

11–50 employees

Short description

Bank Zero is a South African digital mutual bank offering zero-fee mobile banking for individuals, businesses, and children, built on a custom core platform with a world-first patented card fraud prevention system and full SARB settlement and clearing bank status.

Ownership category

akta.pro rank

Product category

Digital Banking

NAICS

Depository Credit Intermediation (5221)

SIC

State Commercial Banks (6022)

akta.pro primary industry

Mass-Market Consumer Deposit Banking (Checking/Savings) (FSABAAAA)

akta.pro secondary industries

SME Deposits & Business Accounts (Operating, Savings, CDs) (FSABABAC), Credit Cards & Revolving Credit (FSABAAAC)

Keywords

• Digital banking services
• Mobile banking platform
• Zero fee banking
• Debit card services
• Savings accounts

Headquarters

HQ city

Johannesburg

HQ country

South Africa

HQ region

Africa

Offices1 record

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Technology or R&D, Personnel, Infrastructure, Operations, Marketing or Sales

Revenue model

1. Transaction Fees: Bank Zero generates revenue from various transaction fees including immediate payment fees to other banks (R6.50 for amounts under R3,000 to most banks, R12 for amounts R3,000+ to FNB/RMB/Standard/ABSA), cash withdrawal fees (R5 at ATM, R2.50 at till), and QR payment receive fees (0.5% of amount received).
2. Card Fees: Revenue from card issuance including personalized card production and delivery fees: R83 for Clicks store collection, R125 for metro street address delivery (R155 for non-metro). These fees cover card manufacturing, personalization, and delivery costs.
3. Interest Income: As a mutual bank focused on savings, Bank Zero earns interest income on customer deposits. The mutual structure allows efficient capital use, enabling competitive interest rates while maintaining profitability. Savings rates range from 4.75% (under R1k) to 7.25% (R1m+).
4. Value-Added Service Fees: Fees for additional services including proof of payment via SMS (R1.50), debit order disputes (R8), chargebacks (R75), additional check account opening (R50 once-off), nuisance fees for incorrect card usage (R3), and statement downloads older than 3 months (R10/statement).
5. Foreign Transaction Mark-ups: Bank Zero charges a 1.8% mark-up on foreign currency card transactions posted in ZAR, providing revenue from international card usage.

Pricing tiers

Go-to-market motion2 records

Distribution channels4 records

Marketing channels6 records

Core offering

Bank Zero is a branchless, app-only mutual bank that delivers zero-fee transactional banking, savings accounts, notice deposits, and business banking to South African individuals and companies through its iOS and Android mobile applications. The bank operates on its own full banking licence with direct integration to the South African Reserve Bank's settlement and clearing infrastructure, and differentiates through a world-first patented debit card fraud-prevention technology that requires phone authorization for all card transactions. Revenue is generated primarily from transaction fees, card issuance, and interest income on customer deposits.

Product overview

Bank Zero is a South African digital neobank offering a unified mobile banking platform with zero-fee transactional accounts for individuals and businesses. The core product is the Bank Zero Mobile Banking App, which provides personal check accounts, business banking (supporting Pty Ltd, CC, sole proprietors, NPOs, and partnerships), savings accounts, and notice accounts (7/32/45 day terms). Key features include the proprietary debit card with patent fraud protection, Send Money (cell-number based transfers with cardless cash), QR Pay/QR Receive (contactless QR payments), Relationship Banking (delegated transaction loading), multi-level Authorization Chains for businesses, Shared Accounts for stokvels and families, Child Accounts for minors, and prepaid purchasing. The platform integrates with Xero for accounting automation, iKhokha for POS services, Apple Pay and Google Wallet for digital wallet payments. All banking is app-driven with no physical branches, emphasizing zero fees on core transactions and advanced security through biometric authentication and patented card technology.

Differentiator

Problem solved

Functional benefit

Products and services

• Personal Check Account A zero-fee transactional account with linked debit card providing free EFT payments, debit orders, card transactions, and Send Money functionality between Bank Zero customers. Targeted at South African individual consumers across all income levels.
• Business Banking Comprehensive business banking covering Pty (Ltd), CC, sole proprietor, NPO, and partnership entities with multi-level authorization chains, relationship banking features, bulk payments (Pay Many), and Xero integration for automated accounting. Targeted at South African businesses from sole traders to large companies.
• Savings Accounts Interest-bearing savings accounts with goal-tracking features, available immediately for withdrawals, with flexible naming and image customization. Rates range from 4.75% (under R1k) up to 7.25% (R1m+).
• Notice Accounts (7/32/45 Day) Time deposits requiring advance notice before withdrawal (7, 32, or 45 days), offering higher interest rates than standard savings with the option for early release with interest penalty. Rates range from 4.50% to 7.22% depending on balance and notice period.
• Bank Zero Debit Card with Patent Security Personalized debit card featuring world-first patent technology protecting against card skimming, online fraud, and card cloning, with user-controlled settings for ATM, online, and tap transactions. Available in Clicks store collection (R83), metro street address delivery (R125), or non-metro delivery (R155) variants.
• Bank Zero Mobile Banking App The mobile-first, app-only digital banking platform through which all of Bank Zero's products and services are delivered. Available on iOS App Store and Google Play, it offers full account opening, transactions, card management, and customer service with no physical branches or call centres.

Quantifiable outcome

• R13,236+ annual fee savings for small business customers compared to traditional banks
• +3 more outcomes

Named customers10 records

Segments5 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration4 records

AI capability2 records

Feature9 records

Partnerships

Ten partnerships are on record, tiered core and minor.

• PaymentologycoreTechnology or Integration · 2 April 2026Bank Zero partnered with Paymentology as its 'first alliance partner' to integrate card issuing and processing infrastructure. Paymentology, with 20+ years of on-soil processing experience in Africa and regional headquarters in Johannesburg, provides digital-first infrastructure enabling third-party fintechs, retailers, SMEs, and digital platforms to launch branded Mastercard products. The partnership supports Bank Zero's white-label ambitions and meets South African regulatory and data residency requirements.
• Lesaka TechnologiescoreStrategic or Co-development Partner · 1 June 2025Lesaka Technologies agreed to acquire 100% of Bank Zero for R1.1 billion. The deal, announced June 2025, received Competition Tribunal approval in November 2025 and is pending final regulatory consents. The extended long-stop date is January 31, 2027. Post-acquisition, Bank Zero shareholders retain approximately 12% stake in Lesaka.
• ApplecoreTechnology or Integration · 1 May 2025Bank Zero supports Apple Pay, allowing customers to add their Bank Zero card to Apple Wallet on iPhone, Apple Watch, iPad, and Mac. Cards can be added directly from the Bank Zero app or manually through Apple Wallet. Transactions require Face ID, Touch ID, or passcode authentication.
• GooglecoreTechnology or Integration · 1 May 2025Bank Zero supports Google Wallet, allowing customers to add their Bank Zero card for contactless payments using Android devices. Cards can be added from the Bank Zero app or Google Wallet.
• iKhokhacoreTechnology or Integration · 18 April 2023Bank Zero partnered with iKhokha for card machine (POS) services. Business customers can seamlessly order and link iKhokha POS terminals to their Bank Zero business accounts without needing to re-FICA. The partnership features zero monthly fees with only small once-off upfront payment for the machine.
• XerocoreTechnology or IntegrationBank Zero integrated with Xero accounting software, allowing business customers to connect their Bank Zero account directly and automatically import transactional data. This eliminates manual data entry and streamlines business accounting workflows.
• MastercardcoreTechnology or IntegrationBank Zero operates on the Mastercard network, with cards certified by both the South African Reserve Bank and Mastercard to issue and process debit cards. Cards work locally and internationally in both eCommerce and bricks-and-mortar environments.
• IBMcoreTechnology or IntegrationBank Zero's core banking platform runs on IBM's LinuxONE mainframe, providing advanced business critical security through pervasive encryption technology. The partnership combines open-source software flexibility with mainframe reliability and security.
• South African Reserve Bank (SARB)coreTechnology or IntegrationBank Zero directly integrated with SARB's settlement system during end 2018 to become a full settlement bank. In early 2019, Bank Zero integrated into the rest of the national payments system to become a full clearing bank, operating on its own licence rather than through another bank's infrastructure.
• LunominorStrategic or Co-development PartnerBank Zero (via Lesaka) is expanding cross-border payments using Zaru, South Africa's first rand-backed stablecoin co-created with Luno, EasyEquities, and a Sanlam unit.

Scale indicators7 records

Recent moves6 records

Expansion highlights5 records

Emerging players

• Nubank: Largest digital bank outside Asia, dominant in Brazil and expanding across Latin America. Comparable as a low-fee, mobile-first bank that scaled rapidly against entrenched incumbents in a concentrated market.
• Revolut: Global neobank known for app-first, fee-light banking, multi-currency, and innovative security features. Comparable as a model for digital banking at scale with strong product velocity.

Broad incumbents

• Standard Bank: Largest bank in Africa by assets, dominant in South African retail and commercial banking. Key competitor for SME and consumer deposits, and an immediate-payment counterparty in Bank Zero's fee structure.
• First National Bank (FNB): One of South Africa's 'Big Four' banks and a leader in digital banking innovation. Bank Zero was founded by former FNB executives and competes directly for digitally inclined retail and SME customers.

Direct peers

• TymeBank: South African digital-only challenger bank with app-based onboarding and zero monthly fees. Closest direct competitor in digital distribution model and target market of mass-market and underbanked South Africans.
• African Bank: South African bank focused on mass-market and underbanked consumers with credit and transactional products. Comparable customer target and product mix, with growing digital capabilities.
• Capitec Bank: South Africa's largest digital-first retail bank, serving mass-market consumers and SMEs with low-fee transactional banking. Most direct comparison for Bank Zero on customer segment, fee-led model, and South African market focus.
• Discovery Bank: South African digital bank leveraging the Discovery Group's behavioural rewards model. Comparable as a digital challenger in the same regulatory market with differentiated customer value proposition.

Others

• Paymentology: Card issuing and processing infrastructure provider and Bank Zero's alliance partner. Comparable as a technology enabler for digital banks and fintechs in Africa and emerging markets.
• Lesaka Technologies: JSE and Nasdaq-listed fintech acquiring Bank Zero for R1.1 billion. Comparable as a strategic acquirer in South African payments, SME merchant acquiring, and digital financial services.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/bankzerosa
• Facebookfacebook.com/BankZer0
• LinkedInlinkedin.com/company/bank-zero/about
• Instagraminstagram.com/bankzero_sa

Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles2 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Bank Zero