South Africa’s Competition Commission has recommended unconditional approval for Nedbank Group’s (JSE:NED) proposed ZAR1.65bn ($93.3mn) acquisition of local fintech company iKhokha, clearing the key regulatory hurdle for the lender’s largest digital-payments deal to date.

The Commission announced its recommendation on October 24, finding that the transaction “is unlikely to substantially prevent or lessen competition” and raises no public-interest concerns. Final authorisation by the Competition Tribunal remains pending but is expected to be procedural.

Nedbank first unveiled the all-cash acquisition in August 2025, aiming to make Durban-based iKhokha a wholly owned subsidiary while preserving its brand and management team. The structure includes a management lock-in to maintain operational continuity.

The deal provides a full exit for early investors — Apis Partners, Crossfin Holdings, and the International Finance Corporation (IFC) — which supported iKhokha’s rise from a startup into one of South Africa’s best-known SME payment and business-tool providers.

“Joining forces with Nedbank gives us the platform to scale our impact and unlock new value for our merchants,” said Matt Putman, iKhokha’s co-founder and CEO. Both sides share plans to expand the platform into other African markets.

Nedbank, South Africa’s fourth-largest bank by assets and customer base, reported H1 2025 headline earnings of ZAR7.8bn on revenue of ZAR32.4bn, with an ROE of 14.6% and Tier-1 capital ratio of 13.3%, underscoring solid capital buffers as it accelerates fintech investments.

The iKhokha acquisition complements its digital offerings, such as Avo SuperShop and the Nedbank Money App, part of a strategy to compete more directly with emerging players like TymeBank, Capitec, FNB, and Yoco in South Africa’s fast-growing SME and payments space.

“This acquisition is a natural evolution of our partnership with iKhokha,” said Ciko Thomas, Nedbank’s Group Managing Executive for Retail and Business Banking.

Founded in 2012 by Putman and Ramsey Daly, iKhokha was inspired by US firm Square, offering mobile-based point-of-sale and payment solutions tailored to small and micro-merchants.