In a joint statement on Tuesday, Capitec said the partnership will help "dramatically reduce the cost of remittances" for South Africa's 2.4 million immigrants. The companies are entering an increasingly contested market targeted by both established banks and fintech start-ups.
"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," said Francois Viviers, group executive for marketing and communications at Capitec, in the statement.
According to the two companies, the partnership will combine Capitecs "massive customer base and digital infrastructure" with Mama Moneys experience in facilitating cross-border transactions in Africa, Asia and Europe.
Migrants from Kenya, Lesotho, Malawi, Mozambique, Uganda, Zambia and Zimbabwe have historically faced high fees and complex processes when sending money home. Traditional bank transfers often cost 8-12 in fees, while Mama Money via Capitec starts from 5.