SOUTH Africa is home to one of the most expensive remittance corridors in the world. According to the World Bank, it costs nearly 12% to send just $200 abroad, making it the most expensive G20 country for outbound money transfers. These steep costs are borne largely by low- and middle-income earners, who make up more than 90% of the remittance market.
Capitec, South Africa’s largest digital bank with over 24 million clients, is stepping in to change this. The bank has launched a cross-border payments solution integrated directly into its mobile banking app, offering clients a simple, secure, and more affordable way to send money to friends and family in eight African countries: Zimbabwe, Zambia, Uganda, Malawi, Lesotho, Mozambique, Tanzania, and Kenya.
Francois Viviers, Group Executive of Marketing and Communications at Capitec, says the service responds to a longstanding challenge facing millions across the continent. “We live in a connected Africa, where supporting family and community is part of everyday life. But the systems people rely on to send money have often been expensive, complicated, and unreliable,” he says. “We saw an opportunity to solve that problem by applying our ethos of simple, affordable, and transparent banking.”
Capitec’s new service is powered by a partnership with Mama Money, a leading fintech focused on inclusive and affordable cross-border transfers. The integration allows clients to send money directly through the Capitec app without the need to download additional software or visit a branch.
Mathieu Coquillon, Co-founder and Director of Mama Money, called the partnership a “game changer” for millions of migrants. “We’re enabling peace of mind for families who rely on remittances for basic needs. By working with Capitec, we’re scaling affordable money transfers across the continent.”
Unlocking a R100-billion opportunity
The South African cross-border payments market is among the largest in Africa, with an estimated R100 billion transferred annually through both formal and informal channels. For decades, consumers have had to choose between paying high fees through formal providers or taking the riskier route of informal money couriers.
Capitec believes it has created a solution that breaks this costly trade-off. “We’ve built a model that uses our scale and digital infrastructure to drive efficiencies,” says Viviers. “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
The launch builds on Capitec’s 2024 international payments offering, which enables account-to-account transfers to more than 50 countries. The new cross-border service complements this by focusing on remittances, often the primary financial link between working migrants and their families across Africa.
“This is about more than just moving money,” says Viviers. “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 make sure as much of that money reaches its destination as possible.”
As South Africa – and the continent at large – embraces digital financial solutions, Capitec’s move signals a deeper commitment to inclusive banking. By addressing one of the region’s most pressing financial pain points, the bank is not just offering a product—it’s empowering a way of life.
“Our purpose is to make a real difference,” concludes Viviers. “This is another step in helping our clients grow and support the people who matter most to them.”
