Transforming Remittances: Capitec’s Affordable Cross-Border Payments Solution for South Africa and Beyond

Capitec Launches Affordable Cross-Border Payment Solution to Tackle High Remittance Costs in South Africa

Johannesburg, South Africa — South Africa has long been recognized as one of the most expensive countries in the world for remittances, with the World Bank reporting that sending just $200 abroad can cost nearly 12%. This financial burden primarily affects low- and middle-income earners, who constitute over 90% of the remittance market. In a bid to alleviate this pressing issue, Capitec, the country’s largest digital bank with over 24 million clients, has unveiled a groundbreaking cross-border payments solution integrated directly into its mobile banking app.

The new service allows users to send money to friends and family in eight African countries: Zimbabwe, Zambia, Uganda, Malawi, Lesotho, Mozambique, Tanzania, and Kenya. Francois Viviers, Capitec’s Group Executive of Marketing and Communications, emphasized the importance of this initiative, stating, “We live in a connected Africa, where supporting family and community is part of everyday life. However, the systems people rely on to send money have often been expensive, complicated, and unreliable.”

This innovative solution is powered by a partnership with Mama Money, a fintech company dedicated to providing inclusive and affordable cross-border transfers. Clients can now send money directly through the Capitec app without the hassle of downloading additional software or visiting a physical branch.

Mathieu Coquillon, Co-founder and Director of Mama Money, hailed the partnership as a “game changer” for millions of migrants. “We’re enabling peace of mind for families who rely on remittances for basic needs. By collaborating with Capitec, we’re scaling affordable money transfers across the continent.”

Unlocking a R100-billion Opportunity

The South African cross-border payments market is substantial, with an estimated R100 billion transferred annually through both formal and informal channels. Historically, consumers have faced a difficult choice: pay exorbitant fees through formal providers or risk using informal money couriers. Capitec aims to eliminate this costly dilemma.

Viviers explained, “We’ve built a model that uses our scale and digital infrastructure to drive efficiencies. Most services charge up to 12% in combined fees and exchange rate markups. Our solution cuts that figure in half.”

A Broader Ecosystem for African Financial Inclusion

This launch builds on Capitec’s 2024 international payments offering, which facilitates account-to-account transfers to over 50 countries. The new cross-border service specifically targets remittances, often the primary financial lifeline for working migrants and their families across Africa.

“This is about more than just moving money,” Viviers added. “It’s about building bridges of support, trust, and inclusion for communities across borders. Our clients work hard for every rand, and we want to ensure as much of that money reaches its destination as possible.”

As South Africa and the broader continent increasingly embrace digital financial solutions, Capitec’s initiative marks a significant commitment to inclusive banking. By addressing one of the region’s most pressing financial challenges, the bank is not merely offering a product; it is empowering a way of life.

“Our purpose is to make a real difference,” Viviers concluded. “This is another step in helping our clients grow and support the people who matter most to them.”

With this new service, Capitec is poised to transform the remittance landscape in South Africa, making it easier and more affordable for families to stay connected across borders.