South Africa’s largest digital retail bank, Capitec, has teamed up with the remittance fintech, Mama Money, to dramatically reduce the cost of cross-border money transfers, providing a vital financial lifeline for the 2.4 million migrant workers in the country.

This partnership represents a significant milestone in African fintech. With remittance fees across the continent typically ranging between 8–12%, this new offering cuts costs down to as low as 5%, enabling transfers to be completed within minutes rather than days.

“For someone earning a minimum wage, a R150 fee to send R1,000 home severely impacts a family’s ability to survive,” explained Mathieu Coquillon, Co-Founder of Mama Money. “We’re changing that.”

A Solution to a Longstanding Challenge
Migrant workers from countries such as Kenya, Lesotho, Malawi, Mozambique, Uganda, Zambia, and Zimbabwe have long struggled with high fees, complex paperwork, and limited digital options for sending money back home.

Capitec’s integration with Mama Money removes much of this friction. Customers can easily log into the Capitec mobile app, choose Mama Money, and generate a 12-digit Universal Mama Money Token. The recipient, who does not need a bank account, receives an SMS and can collect the funds from partner banks or agents in over 70 countries.

This is a simplified solution that is fully POPIA- and FICA-compliant, transparent in its pricing, and tailored to meet the real-world challenges faced by African users.

Empowering Families, Especially Women
Women make up almost half of South Africa’s migrant population, with many serving as the primary breadwinners for their families in neighboring countries. By reducing remittance fees and simplifying access, the Capitec-Mama Money partnership directly fosters gender-inclusive financial empowerment.

“Supporting families across borders is a fundamental aspect of African communities,” said Francois Viviers, Group Executive for Marketing and Communications at Capitec. “Historically, this process has been expensive and complicated. Now, we’re offering a solution that is straightforward, affordable, and transparent—values that are core to our banking philosophy.”

The Advantage of Fintech: Scalable, Digital, and Reliable
Founded in 2015, Mama Money has earned a solid reputation as one of Africa’s most reliable cross-border payment providers, facilitating millions of transactions to over 70 countries. Its expertise in low-fee, digital-first transfers aligns perfectly with Capitec, whose 24 million customers rely on simple, low-cost digital banking services.

For fintech startups observing this space, this partnership highlights a major trend: traditional banks are increasingly integrating fintech-driven solutions to serve overlooked segments of the market, especially those in the informal economy and among the underbanked.

“This is about dignity and fairness,” said Coquillon. “We’re providing people with the tools they need to support their families, build resilience, and participate in the digital economy—regardless of their background or income level.”

A Larger Shift Toward Financial Inclusion
As fintech continues to evolve across Africa, collaborations like this are a clear sign of what’s to come: a growing trend where established financial institutions and startups join forces to tackle deeply ingrained financial challenges. With Capitec’s broad digital reach and Mama Money’s remittance technology, this 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.

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