Reduced Remittance Fees by Capitec and Mama Money Boost Finances of Migrant Families in Africa
Capitec Bank Partners with Mama Money to Revolutionize Cross-Border Money Transfers in Africa
South Africa's digital retail bank, Capitec, has entered into a groundbreaking partnership with remittance fintech startup Mama Money. This alliance aims to revolutionize the cross-border money transfer landscape in Africa by lowering costs, simplifying the process, and expanding access—especially for migrant workers and financially underserved communities.
The partnership enables Capitec's large customer base to send remittances quickly and affordably through Mama Money’s digital platform. Transactions clear within minutes instead of days, with recipients able to collect funds via mobile money or cash pickup across urban and rural areas in countries such as Zimbabwe, Malawi, Kenya, Zambia, Mozambique, Uganda, Lesotho, and more.
Remittance fees, which traditionally range between 8-12%, are significantly reduced with this collaboration, dropping down to as low as 5%. This reduction puts more money into recipients’ hands and reduces the financial burden on migrant workers.
The alliance targets the underbanked, focusing on informal workers and migrants often excluded from traditional banking. By integrating fintech innovation with Capitec’s digital banking infrastructure, it enables seamless, low-cost access for millions, fostering resilience and participation in the digital economy.
The partnership also directly fosters gender-inclusive financial empowerment, as women make up almost half of South Africa's migrant population and many serve as the primary breadwinners for their families in neighboring countries.
Francois Viviers, Group Executive for Marketing and Communications at Capitec, stated that supporting families across borders is a fundamental aspect of African communities. He added that the partnership is more than just a product; it is a signal that financial services in Africa are finally being designed to meet the needs of those who require them most.
Mama Money, founded in 2015, has earned a reputation as one of Africa's most reliable cross-border payment providers, facilitating millions of transactions to over 70 countries. The integration removes much friction by allowing customers to easily send money using the Capitec mobile app and a 12-digit Universal Mama Money Token.
The recipient, who does not need a bank account, can collect the funds from partner banks or agents in over 70 countries. This partnership provides a vital financial lifeline for the 2.4 million migrant workers in South Africa.
The alliance is a step towards a larger shift towards financial inclusion in Africa, as fintech continues to evolve across the continent. Traditional banks are increasingly integrating fintech-driven solutions to serve overlooked segments of the market, such as those in the informal economy and among the underbanked.
This partnership between Capitec and Mama Money is a clear sign of a growing trend: established financial institutions and startups joining forces to tackle deeply ingrained financial challenges in Africa. For thousands of African founders, investors, venture capitalists, tech leaders, and industry decision-makers, connecting and sharing their stories is now easier than ever on our website. Whether building the next big thing or reshaping the future of tech in Africa, our website can help get your story in front of the people who matter.
- The partnership between Capitec Bank and Mama Money signifies a shifting trend in Africa, as established financial institutions and startups collaborate to tackle financial challenges, bringing a new wave of financial inclusion, particularly among the underbanked and informal economy.
- With financial services now being designed to meet the needs of those who require them most, such as migrant workers and the underbanked, venture capital investments in technology-driven solutions may help businesses reshape the African tech industry, leading to a more gender-inclusive and financially empowered lifestyle.
- As fintech continues to evolve across Africa, providing low-cost and seamless access to financial services, the alliance between Capitec and Mama Money is just one example of a venture capital-backed solution that can revolutionize the financial landscape, fostering resilience and participation in the digital economy for millions of individuals.
