Capitec Bank has announced a partnership with remittance fintech company Mama Money that aims to dramatically reduce the cost and simplify sending money out of South Africa.
Capitec has over 24 million clients, the highest of all banks in South Africa, which has an estimated 2.4 million migrants.
Capitec Bank-Mama Money partnershi b In a joint statement on Tuesday 5 August, the two companies said foreign nationals from Kenya, Lesotho, Malawi, Mozambique, Uganda, Zambia and Zimbabwe have historically faced high fees and complex processes when sending money home to support their families.
While banks often charge 8-12 in fees for transfers, Mama Money via Capitec starts from as low as 5, they said. Processing also takes minutes instead of days.
As part of the partnership, Mama Moneys remittance platform is now available on Capitec Banks mobile banking app where customers can access it using the Universal Mama Money Token.
Once money is sent, recipients receive a 12-digit token via SMS. This enables them to collect the funds from partner locations, including banks and agents in more than 70 countries. Recipients do not need to have a bank account.
Mama Money and Capitec share the same principles about low-cost financial services to impact customers' lives positively, Mama Money co-founder Mathieu Coquillon said.
It's about more than convenience - its about dignity and fairness for people who work hard to support their families. When someone earning minimum wage has to pay R150 in fees to send R1,000 home, thats money taken directly from a familys food budget.
While there are other options for migrants such as Shoprite Send, Mama Money hopes to tap into Capitecs large customer base and digital infrastructure.
Capitec has over 24 million clients, the highest of all banks in South Africa, which has an estimated 2.4 million migrants.
Capitec Bank-Mama Money partnershi b In a joint statement on Tuesday 5 August, the two companies said foreign nationals from Kenya, Lesotho, Malawi, Mozambique, Uganda, Zambia and Zimbabwe have historically faced high fees and complex processes when sending money home to support their families.
While banks often charge 8-12 in fees for transfers, Mama Money via Capitec starts from as low as 5, they said. Processing also takes minutes instead of days.
As part of the partnership, Mama Moneys remittance platform is now available on Capitec Banks mobile banking app where customers can access it using the Universal Mama Money Token.
Once money is sent, recipients receive a 12-digit token via SMS. This enables them to collect the funds from partner locations, including banks and agents in more than 70 countries. Recipients do not need to have a bank account.
Mama Money and Capitec share the same principles about low-cost financial services to impact customers' lives positively, Mama Money co-founder Mathieu Coquillon said.
It's about more than convenience - its about dignity and fairness for people who work hard to support their families. When someone earning minimum wage has to pay R150 in fees to send R1,000 home, thats money taken directly from a familys food budget.
While there are other options for migrants such as Shoprite Send, Mama Money hopes to tap into Capitecs large customer base and digital infrastructure.