South Africa stands out as the most expensive G20 country for sending money abroad. According to the World Bank, remitting $200 costs almost 12%, significantly more than in other G20 nations. These costs are placed on low to middle-income earners who account for over 90% of the overall market.
Capitec, the country’s leading financial services group with over 24 million clients, has launched its new cross-border payments service in a bid to serve this crucial market. Integrated directly into its banking app, the solution offers a simple, secure, and more affordable way for clients to send money to family and friends in eight African countries, including Zimbabwe, Zambia, Uganda, Malawi, Lesotho, Mozambique, Tanzania, and Kenya.
Francois Viviers, Group Executive of Marketing and Communications at Capitec, says the solution was born from a deep understanding of the challenges millions face when it comes to sending money within Africa. “We live on a connected continent, where the age-old tradition of supporting family and community is a fundamental part of our culture. Yet, sending money across borders has been expensive, complicated and stressful for millions. We see an opportunity to apply our ‘simple, affordable and transparent’ banking ethos to this problem. Our clients work hard for their money, and they deserve a solution that safely and affordably delivers more of that money to where it’s meant to go.”
Capitec works with the innovative Mama Money transfer network to offer a seamless way for clients to send money abroad. Mama Money’s Co-founder and Director, Mathieu Coquillon, said: “Partnering with Capitec allows us to extend our mission of financial inclusion and ensure peace of mind for millions of migrants who need an affordable money transfer service. This is a game changer for millions of families who depend on remittances for their daily needs.”
Solving the remittance challenge
The South African cross-border payments market is one of the largest on the continent, with an estimated R100 billion transferred annually through formal and informal channels.
Viviers adds, “Historically, senders have faced a difficult choice – navigate the high fees and slow processing times of traditional formal channels or turn to informal, unregulated methods that carry significant risks of loss and theft. We’ve partnered with Mama Money to ensure the most extensive distribution network, enabling your money to reach more destinations. Our app creates scale and efficiencies, significantly lowering the cost and simplifying the process to just a few clicks. Most competitors’ total costs, including fees and exchange rate commissions, can reach up to 12%, but with Capitec, you will pay half of that.”
Why Capitec’s cross-border payments are a game changer
This new service complements the existing International Payments offering Capitec launched in 2024 and builds on its core principles of simplicity, affordability, and accessibility. Key benefits include:
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Convenience: Clients can send money from anywhere, at any time, directly from the Capitec app they already know and trust. There is no need to download new software or visit a branch.
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Transparent and affordable pricing: Before completing a transaction, clients see a real-time quote that includes all fees and the exact exchange rate. This ensures there are no surprises, allowing senders to know precisely how much their recipient will get.
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Bank-grade security: Sending money through the Capitec app provides peace of mind that informal channels don’t. Since Capitec authenticates its clients, every transaction is protected by the financial service’s robust security infrastructure, reducing the risk of fraud.
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Speed and reliability: The service is designed for speed, ensuring money reaches recipients in minutes. Senders receive real-time updates and notifications on the progress of their transactions, which they can share with the receiver.
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Simple onboarding for a complex need: Existing, verified Capitec clients don’t need to complete any paperwork. This removes a significant barrier to entry that is common with other providers.
Building a bridge for financial inclusion
The launch of cross-border money transfers is a significant milestone in Capitec’s mission to create an integrated financial ecosystem that supports every aspect of a client’s life. Building on its existing international payments offering, which allows easy account-to-account transfers to over 50 countries Capitec’s collaboration with the Mama Money transfer network expands its payments ecosystem beyond South Africa’s borders.
“It is in our DNA to listen to our clients’ needs and build something better. Our new cross-border money transfers give millions of people a safe, more affordable, and simple way to support their families. It’s one more way we’re delivering on our purpose to make a meaningful difference and help our clients grow”, concludes Viviers.