Capitec, South Africa’s largest bank by customers, is muscling in on the remittance market through a partnership with the fintech and remittance specialist Mama Money.
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 Capitec’s “massive customer base and digital infrastructure” with Mama Money’s 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%.
The companies also claim their remittance facilities can clear cross-border transactions “in minutes instead of days”.
Low cost
Capitec customers can now access Mama Money payment facilities via their banking app using the “universal Mama Money” option. Recipients receive a 12-digit token via SMS, allowing them to collect cash from partner locations, including banks and agents across 70 countries with no need for a bank account.
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“Mama Money and Capitec share the same principles about low-cost financial services to impact customers’ lives positively. When someone earning minimum wage has to pay R150 in fees to send R1 000 home, that’s money taken directly from a family’s food budget,” said Mama Money co-founder Mathieu Coquillon. – © 2025 NewsCentral Media
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