Africa Digest News

South Africa’s largest bank by client base, Capitec, has teamed up with fintech innovator Mama Money to disrupt cross-border remittances.

Announced on August 5, 2025, this partnership aims to make sending money abroad faster, cheaper, and more accessible for South Africa’s 2.4 million migrant workers.

But can Mama Money’s expertise help Capitec scale this ambitious venture quickly in a crowded market?

Let’s break it down with a fresh perspective, looking into what this means for users and whether it’s a game-changer or just another drop in the remittance pool.

Why This Partnership Matters

Capitec, with over 24 million clients, dominates South African banking through its digital-first, low-cost model.

Mama Money, a Cape Town-based fintech, has created a specific market in affordable international transfers, serving over 70 countries with fees as low as 5%.

Their collaboration, announced recently, targets a pain point for migrants: high fees and complex processes that eat into hard-earned money sent home to places like Kenya, Zimbabwe, or India.

• Lower Costs: Traditional bank transfers charge 8-12% in fees. Capitec and Mama Money slash this to 5%, saving users significant amounts.
• Speed: Transactions clear in minutes, not days, a critical edge for families relying on timely support.
• Accessibility: Recipients don’t need a bank account, just a 12-digit token sent via SMS to collect cash at partner locations worldwide.

This move isn’t just about convenience; it’s about empowerment. With nearly half of South Africa’s migrants being women, many primary breadwinners, this service supports financial inclusion across borders.

READ ALSO:South Africa Welcomes Mama Money’s WhatsApp-Powered Bank Card

How It Works: Seamless and User-Friendly

Capitec’s mobile app integrates Mama Money’s “Universal Mama Money” option, making the process easy to use:

1. Log into the Capitec app.
2. Select “Mama Money – Money Transfers” as a public beneficiary.
3. Enter transfer details and generate a 12-digit token.
4. Recipients receive the token via SMS and collect cash at banks or agents in 70+ countries.

The service is POPIA- and FICA-compliant, ensuring security and transparency. No hidden fees, no complicated paperwork, just a streamlined solution built for Africa’s real-world needs.

Can Mama Money Help Capitec Scale Fast?

Mama Money’s track record suggests it’s a strong partner for rapid growth. Since its founding, it’s disrupted the remittance market with a mobile-first approach and partnerships with global players like Western Union and M-Pesa.

Here’s why they could help Capitec scale:

• Proven Expertise: Mama Money’s experience in Africa, Asia, and Europe gives Capitec a ready-made network to tap into.
• Digital Agility: Their app and EFT integration via Ozow make transfers quick and accessible, aligning with Capitec’s digital ecosystem.
• Cost Advantage: Starting at 5% fees, they undercut competitors, appealing to cost-conscious migrants.

However, challenges remain. The remittance market is fiercely competitive, with giants like WorldRemit and MoneyGram dominating.

Regional players and mobile wallets like M-Pesa are also gaining ground. Capitec’s late entry into forex services, restricted by SARB regulations until recently, means they’re playing catch-up.

Scaling fast will require flawless execution and aggressive marketing to win trust among migrants.

What Sets This Apart?

Unlike traditional banks or even other fintechs, this partnership blends Capitec’s massive reach with Mama Money’s remittance know-how. Here’s what makes it unique:

• Massive Scale: Capitec’s 24 million clients, with 13 million active app users, provide a huge potential user base.
• Affordability: Fees starting at 5% are among the lowest in the market, compared to 8-12% from traditional banks.
• Cultural Fit: Both companies emphasise community and inclusion, resonating with migrants supporting families abroad.

READ ALSO:Is This the Future of Sending Money to and from Zambia?

The Bigger Picture: Financial Inclusion in Africa

This partnership isn’t just about remittances; it’s a step toward financial empowerment. In 2024, remittances to Africa remained costly, with fees averaging 8-12%.

By slashing costs and simplifying processes, Capitec and Mama Money are addressing a critical need for millions. Their focus on women migrants, who often face higher barriers, adds a layer of social impact.

As fintech matures in Africa, collaborations like this signal a shift. Banks and startups are joining forces to tackle systemic issues, from high fees to limited access. If successful, this could set a blueprint for other African markets.

Ready to try it? Log into the Capitec app and explore the Mama Money option today. Share your thoughts in the comments,have you used this service yet?

Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, climate change, and digital finance at Africa Digest News.