The global payments company 80eight is spearheading a significant transformation within the foreign exchange (forex) industry, primarily by drastically cutting costs for its clients. This initiative addresses the long-standing issue of inflated fees associated with international money transfers. According to Faadil Moti, CEO of 80eight, traditional transactions often involve substantial charges, including SWIFT fees ranging from R500 to R1,000, and bank buy-sell spreads that can exceed 2.5% of the transaction amount, even before considering other commissions or service charges. Moti highlights that forex fees in South Africa are notably higher than in many other parts of the world, a problem that has persisted for decades without sufficient challenge.

80eight is tackling this issue head-on by implementing two key cost-saving measures: waiving SWIFT fees entirely for the next three months and offering reductions of up to 50% on the typically high 'spread' fees imposed by banks. SWIFT, the Society for Worldwide Interbank Financial Telecommunication, connects over 11,000 financial institutions globally, facilitating international transactions through a network of intermediary banks, each of which typically takes a portion of the fees. The company's commitment to covering these unavoidable SWIFT costs for three months provides significant relief, particularly for individuals and businesses making regular cross-border payments.

A core problem identified by 80eight is the lack of transparency in how banks structure their forex service charges. Research conducted by 80eight, and corroborated by a Moneyweb investigation, reveals that many consumers are unaware of the full extent of forex costs because key expenses are often concealed within the buy-sell spreads. Major banks have been found to charge between R0.40 and R1 per US dollar exchanged, resulting in effective costs of 2.2% to 5.5%, exclusive of SWIFT and other fees. While corporate clients might negotiate lower rates, individuals and small and medium-sized enterprises (SMEs) typically accept the offered rates without question. Moti argues that these fees are unjustifiably high, asserting that 80eight has demonstrated that a 50% cost reduction is achievable, raising questions about why traditional banks cannot match this.

80eight's business model is designed to eliminate common charges; it imposes no commissions or administrative fees, further maximizing client savings, especially with the temporary removal of SWIFT fees. Moti explains that banks impose high fees based on the assumption that customers will not push back, and 80eight aims to disrupt this dynamic. The company's strategy involves pooling transactions to secure better rates for both businesses and individuals, thereby revolutionizing the industry without requiring clients to switch their existing bank accounts. Clients simply pay once through 80eight, benefiting from the efficiencies and advanced technology integrated into its systems.

Leveraging advanced fintech solutions, including cryptocurrency avenues, 80eight facilitates fast and low-cost transfers. While clients are primarily focused on results, 80eight ensures that cross-border payments are executed promptly and at a fraction of traditional costs. Furthermore, 80eight distinguishes itself by assigning each client a dedicated specialist consultant to oversee and manage their payments. This personalized approach eliminates the frustrations of dealing with automated chatbots or enduring extended wait times for customer support, providing a more human-centric and efficient service experience.

Beyond payment facilitation, 80eight also extends its services to provide financing solutions for SMEs looking to expand or engage in international trade. This includes offering access to a vast network of over 30,000 international business contacts across the Middle East, Asia, and Europe. Moti emphasizes that the company recognized the need to go beyond mere payment processing, crafting solutions to aid business clients in scaling their operations and connecting them with potential suppliers and customers. All these capabilities, from cost-effective payments to SME financing and networking, are conveniently accessible through the 80eight mobile app, underscoring its commitment to comprehensive financial solutions for a modern global economy.