Capitec Bank and Mama Money join forces to lower cross-border transfers remittance
Capitec Bank has announced a strategic partnership with Mama Money to streamline and reduce the cost of cross-border remittances for South Africa’s migrant population.
According to IOL, this collaboration, which addresses the high fees and complexity that migrants have long faced when sending money home, is poised to transform how families across Africa, Asia, and Europe access financial services.
Key takeaways
- Partnership details: Capitec and Mama Money aim to offer a simplified, lower-cost remittance service.
- Reduced fees: Traditional bank transfers often charge 8-12% in fees, while Mama Money via Capitec starts from just 5%.
- Convenience: Capitec customers can use the mobile banking app to send money in minutes, with no bank account required for recipients.
- Broad Reach: This service is available across 70+ countries, benefiting migrants from countries like Kenya, Lesotho, and Zimbabwe.
Partnership aims to lower costs and enhance accessibility
Capitec's collaboration with Mama Money is designed to reduce the high costs traditionally associated with remittance services. Migrants, particularly women, who make up over one million of South Africa’s migrant population, often send billions of rands home to support their families. However, traditional banks charge prohibitively high fees, taking up to 12% of the funds sent. With the new partnership, fees are reduced to just 5%, offering a more affordable and efficient option.
By leveraging Capitec's robust customer base and digital infrastructure, alongside Mama Money's expertise in cross-border transactions, the partnership aims to make sending money both easier and faster. Capitec customers can now access Mama Money’s remittance platform directly through their mobile banking app, completing transfers within minutes. Furthermore, recipients receive a Universal Mama Money Token, which allows them to collect cash from partner locations across over 70 countries—without needing a bank account.
A game changer for SA migrants
The new service comes at a critical time for South Africa’s migrant community, which has historically dealt with high remittance fees and lengthy processing times. By addressing these challenges, the partnership could significantly improve the financial well-being of migrant families. The collaboration is a step toward providing accessible and affordable financial services for all, particularly those in underserved regions.
Capitec’s partnership with Mama Money highlights the increasing need for low-cost, efficient financial services for cross-border transactions. As the service continues to expand, it has the potential to reshape the remittance landscape, benefiting millions of families and further integrating South Africa into the global financial ecosystem.
We wrote earlier that investment in South Africa halves amid public sector struggles.
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