South Africa’s Lesaka hits first profit since 2022 despite merchant slowdown
- Lesaka Technologies reported a net profit of R61 million in Q2 2026, a significant improvement from a loss of R589 million a year earlier.
- Revenue from Lesaka's merchant unit fell by 13% year-on-year to R2.26 billion, despite an 8% growth in the merchant base.
- Card transaction volumes rose to R12.1 billion, and cash volumes increased by 5% to R31.9 billion.
Lesaka Technologies' ability to pivot and diversify its offerings in response to market challenges is commendable. The planned acquisition of Bank Zero could significantly enhance its operational efficiency and competitive edge in the fintech space. However, the decline in merchant revenue highlights the need for continuous innovation to retain market share in a competitive environment.
