Capitec Bank partners with Mama Money to simplify cross-border remittances

In a bid to dramatically reduce the cost and simplify sending money across borders for the country's 2.4 million migrants, Capitec Bank has announced a partnership with remittance fintech Mama Money. 

The partnership is set to address a critical need in South Africa's financial ecosystem, where migrants 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.

According to Capitec, with women comprising over one million of South Africa's migrant population, this partnership will transform how families across the region access financial services.

"Migrants regularly send billions in remittances across Africa, with traditional banks often charging prohibitive fees that eat into money desperately needed by families," it says.

The bank says traditional bank transfers often cost 8-12% in fees, while Mama Money via Capitec starts from 5%, with processing taking minutes instead of days.

"Capitec customers can now access Mama Money's remittance platform directly through their mobile banking app, using the Universal Mama Money Token.

Recipients receive a 12-digit token via SMS, allowing them to collect cash from partner locations, including banks and agents across 70+ countries – no bank account required," the bank says.

Mama Money co-founder Mathieu Coquillon says Mama Money and Capitec share the same principles about low-cost financial services to impact customers’ lives positively.

"It’s about more than convenience, it's 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, that's money taken directly from a family's food budget."

The collaboration combines Capitec's massive customer base and digital infrastructure with Mama Money's decade of experience in facilitating millions of cross-border transactions across Africa, Asia, and Europe, the bank says.

Capitec group executive of marketing and communications Francois Viviers says the solution was born from a deep understanding of the challenges millions of people living and working in South Africa face.

“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.

"We see an opportunity to apply our ‘simple, affordable and transparent’ banking ethos to this problem. Our clients work hard for their money, and they deserve a solution that safely and affordably delivers more of that money to where it's meant to go," he says.

Capitec says the service is now available through Capitec's mobile app with transparent pricing, completion within minutes, and full regulatory compliance.

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