The global payments company 80eight is transforming the forex market by significantly cutting costs in two major ways: waiving SWIFT fees for the next three months and reducing banks’ typical ‘spread’ fees by up to 50%.
“It’s frustrating for those transferring funds abroad to encounter such high fees accumulating. Initially, there are SWIFT fees that can range from R500 to R1,000, followed by the bank’s buy-sell spreads, which may reach as high as 2.5% of the transaction value or more. This doesn’t even include extra charges like commissions or service fees,” explains Faadil Moti, CEO of 80eight.
“Forex fees in South Africa are considerably higher than in other parts of the world, and this issue has gone unchecked for decades. We aim to change that.”
The R500-R1,000 SWIFT fee is significant, particularly for those making regular international transactions. This unavoidable cost is shared among the banks involved – unless you opt for 80eight, which is covering SWIFT fees for three months.
Many customers are unaware of how banks determine their forex pricing. Research by 80eight shows that most people do not recognize the extent of the forex costs they bear, as the primary expenses are often concealed within the buy-sell spreads charged by banks.
A Moneyweb study indicates that leading banks charged between R0.40 and R1 for each US dollar exchanged, resulting in costs from 2.2% to 5.5%, excluding SWIFT and any additional fees levied by the banks.
Corporate clients often negotiate better rates, while individuals and SMEs typically accept whatever fees are set.
“These costs are simply too steep and, in our opinion, unjustifiable,” Moti emphasizes. “There’s not enough competition in this space, and we’ve shown that these costs can be reduced by 50%. So why can’t the banks do the same?”
80eight charges no commissions or administrative fees, and with the suspension of SWIFT fees for three months, customers can save even more. SWIFT, the Society for Worldwide Interbank Financial Telecommunication, links over 11,000 financial entities across 200 nations and enables international transactions via a network of intermediary banks, each taking a cut of the fees.
“Banks impose high fees with the assumption that customers won’t mind,” Moti states. “Our strategy is reinventing the industry. There’s no need to switch banks to take advantage of our services, and we don’t apply double charges. By pooling transactions, we secure better rates for both businesses and individuals.”
80eight leverages cutting-edge fintech solutions, including cryptocurrency pathways, to facilitate quick, low-cost transfers. “Clients are focused on results, not technology,” Moti notes. “We enable cross-border payments at a fraction of the usual costs and do so efficiently.” Every customer is assigned a dedicated consultant to track payments, eliminating the hassle of extended conversations with chatbots or long waits on the phone for assistance.
Each client is matched with a specialist consultant dedicated to overseeing payments, making it easier to avoid automated chat systems or prolonged customer service wait times.
The good news is that 80eight offers these reduced rates without requiring clients to change banks. “This is a common inquiry,” Moti explains. “Clients do not need to leave their existing banks, and they won’t incur double charges – they only pay once. We can achieve this efficiency due to the advanced technology we’ve integrated into our systems.”
80eight also provides financing solutions for SMEs looking to expand or trade, granting access to a network of suppliers and potential customers across the Middle East, Asia, and Europe.
“We identified the need to offer more than just cross-border payment facilitation, as some of our business clients need short-term funding for expansion. Consequently, we developed solutions that aid in scaling their operations while also connecting them to our vast network of over 30,000 international business contacts,” Moti explains.
All these features are now easily accessible through the 80eight app.
Brought to you by 80eight.
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