The global payments company 80eight is transforming the forex sector by drastically lowering costs through two major initiatives: waiving SWIFT fees for the next three months and cutting banks’ usually high ‘spread’ fees by up to 50%.
“It’s frustrating for those transferring money abroad to encounter such hefty fees piling up. Initially, there are SWIFT fees ranging from R500 to R1,000, followed by banks’ buy-sell spreads, which can reach as high as 2.5% of the transaction value or even more. This doesn’t even consider additional costs like commissions or service fees,” says Faadil Moti, CEO of 80eight.
“Forex fees in South Africa are significantly higher than in other countries, and this issue has remained unchecked for decades. We aim to change that.”
The R500-R1,000 SWIFT fee is not insignificant, particularly for individuals making frequent international transactions. This unavoidable cost is shared among the banks involved—unless you choose 80eight, which will cover SWIFT fees for three months.
Many consumers lack awareness of how banks structure their forex fees. A study by 80eight found that most people are unaware of the true forex costs they incur, as the primary expenses are often concealed within the buy-sell spreads issued by banks.
A Moneyweb analysis indicates that leading banks charged between R0.40 and R1 for each US dollar exchanged, resulting in costs ranging from 2.2% to 5.5%, not counting the SWIFT and other fees imposed by banks.
Corporate clients often negotiate lower rates, while individuals and SMEs generally accept whatever charges apply.
“These costs are simply too high and cannot be justified,” Moti continues. “The competition in this field is lacking, and we’ve shown that it’s possible to reduce these fees by 50%. So why can’t banks do the same?”
80eight imposes no commissions or administrative fees, and with the abolition of SWIFT fees for three months, clients can save even more. SWIFT, the Society for Worldwide Interbank Financial Telecommunication, connects over 11,000 financial institutions in 200 countries, facilitating international transactions through a network of intermediary banks, each taking a portion of the fees.
“Banks impose high charges on the assumption that consumers won’t complain,” Moti explains. “Our model is set to revolutionize the industry. There’s no need to switch banks to use our services, and we don’t impose double fees. By aggregating transactions, we can secure better rates for both businesses and individuals.”
80eight leverages cutting-edge fintech solutions, including cryptocurrency options, to facilitate fast, low-cost transactions. “Clients care about outcomes, not the technology,” Moti notes. “We provide cross-border payments at a fraction of the traditional costs and do so quickly.” Every client receives a dedicated consultant to oversee payments, avoiding the frustration of dealing with chatbots or long wait times for assistance over the phone.
Each client is matched with a specialist consultant for payment tracking and management, eliminating the inconvenience of automated chat systems or lengthy customer service waits.
The excellent news is that 80eight offers these discounted rates without requiring clients to change their banks. “This is a common question we encounter,” Moti explains. “Clients do not need to leave their currentbanks, and they won’t face double charges – they pay only once. We can accomplish this due to the efficiencies and advanced technology we’ve integrated into our systems.”
80eight also provides financing solutions for SMEs looking to expand or trade. This includes access to a network of suppliers and potential customers across the Middle East, Asia, and Europe.
“We recognized the necessity to go beyond just facilitating cross-border payments because some of our business clients require short-term funding to grow. Therefore, we developed solutions that help them scale their operations while introducing them to our vast network of over 30,000 international business contacts,” Moti elaborates.
All these features are readily available through the 80eight app.
Brought to you by 80eight.
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