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Capitec Bank, a leading retail bank founded by South African billionaire banker Michiel le Roux, said it has agreed to buy 100 percent of Walletdoc Holdings in a deal valued at up to R400 million ($23.5 million). The purchase adds a growing digital payments business to Capitec’s expanding financial services network.
Founded in 2015, Walletdoc provides payment gateway tools for merchants, including in-app billing, digital wallets, and Instant EFT. Capitec said the fintech’s hands-on approach to product development and customer service aligns closely with the bank’s own push to offer simple, low-cost financial solutions.
Deal structure and strategic rationale
Capitec will pay R300 million ($17.7 million) in cash at closing, subject to standard adjustments. A deferred earn-out of R100 million ($5.9 million) may follow over three years, tied to performance targets and Capitec’s share price.
The bank said the acquisition will help it lower payment costs for merchants, broaden access to digital tools, and support South Africans who still face barriers to formal banking. “We believe technology can make everyday transactions easier and more affordable for people and businesses across the country,” it said in a statement.
Building a broader banking platform
Capitec has been adding new lines of business as it looks to widen its reach. In 2019, it bought Mercantile Bank for R3.5 billion ($206.2 million), later integrating it into Capitec Business Banking. Last year, it lifted its stake in European lender Avafin to 97 percent, extending its footprint in Poland, Spain, Mexico, Czechia, and Latvia.
Graham Lee, who recently took over as Capitec Group CEO, said the bank is considering further international expansion, although the timing and markets have not been disclosed.
Strong growth and rising digital use
Capitec, launched in 2001 by Le Roux, Jannie Mouton, and Riaan Stassen, now serves more than 20 million customers nationwide. The bank reported a 19.6 percent rise in first-half profit to R5.6 billion ($326 million) for 2026, supported by income growth and tight cost controls.
Capitec has also been adding new digital features, from March to August 2025, clients made 1.9 million overseas card payments, up 24 percent from the previous year, spending over $55 million. In October, the bank partnered with fintech startup Stub to give small firms real-time access to financial data, part of its effort to strengthen South Africa’s small-business sector.
