The financial tech (fintech) industry in South Africa is our most innovative and fastest growing. As fintech innovations continue to take hold of South Africa, there are various trends and happenings shaping the landscape.
Among the many innovations coming from the Fintech sector, the most notable are mobile money solutions, increase in digital assets (cryptocurrency), e-commerce solutions and the heightened attention of cybersecurity solutions.
As the fintech industry continues to innovate and change the way we send and receive money, here are some other key trends that will shape the sector in 2025.
Key Fintech Trends in 2025
According toWebber Wentzel's fintech experts, the following are the key trends to expect in areas such as generative artificial intelligence (GenAI) and machine learning, payments, crypto and blockchain, open banking and open finance, as well as mobile banking and other financial services.
GenAI and Machine Learning
Late last year, the Department of Communications and Digital Technologies (DCDT) publicised theSouth Africa National Artificial Intelligence Policy Framework for public comment. This framework has nine strategic pillars for South Africa’s AI policy. The policy is expected to be finalised this year.
The policy will have an impact on the financial services industry as the adoption of guidelines for the effective use of AI tools is highly regulated in industries such as the fintech sector.
Digital Payments
In 2025 there are several regulatory amendments set to be made in the payments sector. Proposed changes include amendments to theNational Payment System Act. Additionally, theSouth African Reserve Bank announced that it would be working on multiple workstreams and initiatives to modernise the country’s national payment system.
The changes coming to the payments sector are to allow for greater involvement of non-bank entities and their direct access to the payment system in South Africa. Lastly, theConduct of Financial Institutions Bill is expected to include provisions addressing payment system related activities.
Cryptocurrency and Blockchain
Last year, the Financial Sector Conduct Authority (FSCA) announced that it had issued 248 crypto asset service provider (CASP) licences. Experts predict there will be more joint ventures and partnerships between CASPs and traditional financial institutions.
Additionally, the rollout of more regulations and standards around crypto assets will happen in 2025. These regulations and standards should help deal with cross border flow of funds and the market conduct of CASPs.
Open Finance
Open finance is the sharing of consumer data from banks and financial services providers (FSPs). This data is shared with other FSPs such as fintech companies with the consent of the customer.
In 2025, experts will see more guidelines regulating the activities of financial institutions and third-party providers.
South Africa’s Fintech Landscape
South Africa has the most sophisticated financial sector in Africa. South Africa tech startups account for20% of all new fintech businesses in Southern Africa and 40% of Africa’s total fintech income.
The amount of fintech companies in South Africa continues to grow and currently sits at over 140. This makes South Africa the second largest fintech market in the African continent. South African fintech companies represent over 20% of all fintech startups in Africa.
African fintech startups continue to lead the charge when it comes to raising funds and according to the Partech Africa Tech Venture Capital Report, have raised over $3 billion in funds from over 500 deals last year. Also the fintech industry leads in terms of funds raised in Africa.
For South Africa, the biggest funding deal was for TymeBank which attracted a $250 million funding deal. Other successful fintech companies include Ozow, Stitch, Yoco, Lula and Valr have also seen amazing funding rounds since their inception.
Many experts see the growth of fintech startups as a way to increase financial inclusion in South Africa. These companies have delivered innovative solutions that improve customer experience, provide alternative funding solutions and drive overall economic growth in South Africa.
Editor of Tech Africa. With a degree in Media Studies and Communication from the University of the Free State, I bring a wealth of experience in journalism and copywriting.
