The South African retail giant keeping banking CEOs up at night
GoTyme Bank CEO Cheslyn Jacobs says that Pepkor’s expansion into banking will introduce a major competitor into the space.
Pepkor, South Africa’s largest clothing retailer, received regulatory approval in November 2025 to create a bank.
The retailer also acquired fintech software provider Cloudbadger to help build the bank. The bank aims to reach millions of lower-income customers.
Pepkor has also started the hunt for a new banking chief as it plans to use its 2,500 PEP outlets in South Africa for the bank.
The bank was initially seen as a possible partnership with Investec, but Bloomberg has now reported that Pepkor are looking to launch the lender on its own.
While the bank is still far from launching, Jacobs told BusinessTech that all banks should keep an eye on the new venture.
He said that PEP boasts a seasoned exco and a massive distribution network, with PEP stores found “everywhere” in South Africa.
He added that the Tyme Group team is familiar with the people building the tech behind the upcoming bank, who are highly skilled.
While Jacobs joked that he sleeps well at night and that it won’t keep him awake, it will be on his mind when he wakes up.
However, he noted that the transition from retail to banking may not be smooth sailing for Pepkor, as banking is a highly competitive business.
Revolut is a different story
While Pepkor’s banking operations may pose a threat to GoTyme’s rebranded operations in South Africa, Jacobs fears international banking giant Revolut less.
Revolut formally applied for a South African banking licence in November, marking its first move into Africa as a digital bank.
The bank believes the South African market is primed for “disruption,” and the company sees a clear opportunity to bring its product expertise and customer-first approach to the country.
A full banking licence would allow Revolut to offer a complete range of financial services rather than a limited app-based product.
Revolut has grown rapidly over the last decade, and has over 65 million customers worldwide, including 12 million in the UK. It operates in over 48 countries worldwide.
While the bank’s customer base is huge, Jacobs said that Revolut and GoTyme will operate in different segments.
While Revolut has millions of customers, they are spread across the many markets in which it operates.
GoTyme, on the other hand, has over 12.5 million customers in South Africa alone, which works out to roughly one-third of all South Africans over 16 years old.
Although Jacobs admitted that Revolut’s operations are “super sexy,” its South African operations would be incredibly niche.
This differs from GoTyme’s high-volume and low-margin focus. Jacobs did welcome the competition from PEP and Revolut, as greater competition is better for growth.
Notably, Revolut’s South African CEO, Jacques Meyer, is a former Tyme employee, serving as its Chief Operating Officer from 2015 to 2018. This was before TymeBank launched to the public in 2019.
Meyer was also the Chief of Product of Discovery Bank from 2019 to 2022, giving him extensive expertise of South Africa’s digital banking environment.
Revolut also appointed Dr Gaby Magomola as chairman of its South African business. Magomola held senior executive positions at Citibank, Barclays, FNB, and was a former CEO of African Bank.
With reporting from Bloomberg. Headline image from Reuters.
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