This month, the fintech collective 80eight has disrupted the financial services landscape by announcing the suspension of SWIFT fees on forex transactions for a three-month duration.

Additionally, they have reduced bank forex fees by up to 50%. This significant reduction marks a considerable drop in the fees typically charged by banks for forex transactions.

“Many South Africans are not fully aware of the extent and nature of the banking fees they encounter,” states Faadil Moti, CEO of the global payments company 80eight.

“They notice monthly service charges that can accumulate to hundreds or even thousands of rands, yet they rarely question these costs. Furthermore, they often overlook the extra fees for inter-bank transfers, ATM withdrawals, and forex transactions,” he elaborates.

“Every time money is sent, banks apply a fee unless the funds are transferred between accounts within the same bank,” Moti clarifies.

Customers are increasingly realizing the advantages of conducting transactions outside traditional banking channels, he notes. This shift not only leads to significantly lower fees but also facilitates quicker transaction times and enhanced customer service.

A subtle way banks rationalize high fees is by promoting a “mid-market rate” for forex. Customers should instead concentrate on the buy-sell spread, which represents the difference between buying and selling prices for foreign currency.

This spread can vary between 1.6% and 3% or more, revealing the actual cost of forex transactions. Moreover, mandatory SWIFT fees of R500 and any administrative charges or commissions can add to the overall expense. Collectively, these can raise the total cost to over 3% of the transaction’s value, as noted by 80eight.

“Numerous bank customers are unaware that they can conduct forex transactions without relying on a bank. We assure you that our services are both more affordable and efficient,” Moti asserts.

“Our pricing is straightforward and transparent—clients experience spreads up to 50% lower than those provided by conventional banks, with no hidden fees. You’ll know precisely what you’re paying for, and the savings are immediately evident.”

Moti explains that banks have exploited customers’ hesitance to switch banking institutions due to the accompanying documentation and administrative burden, leading to minimal competition impacting their fee structures.

“You don’t have to change banks to work with us. We can offer forex rates that are significantly better than what your bank provides, ensure faster transactions, and pair you with a personal consultant to help you manage your transactions and navigate regulatory compliance,” he adds.

80eight represents a new wave of fintech leveraging various channels for cross-border transactions.

“While we employ advanced technology for our services, our clients primarily seek reassurance: can we facilitate quicker and cheaper cross-border payments than anyone else? The answer is yes, we can consistently deliver,” Moti confirms.

80eight is also transforming traditional banking practices by offering trade and various financing solutions specially designed for small and medium-sized enterprises (SMEs) looking to grow their operations.

“Some clients need short-term financing to expand or fund import shipments. However, bank approval processes are well-known for being slow and often unaccommodating to SMEs. There’s an extensive market that could thrive by understanding these smaller businesses,” Moti remarks.

“We not only help them access appropriate financing but also connect them with our broad network of suppliers and potential clients across the Middle East, Asia, and Europe,” he adds.

A fruit exporter partnering with 80eight has successfully streamlined its cross-border payment processes and managed its forex requirements. With faster settlement times and significantly reduced fees, the exporter has redirected its focus toward scaling operations.

Today, they have evolved into a recognized brand with increasing volumes in the Middle East and Europe.

“Whether you’re an importer, exporter, or a digital-first entrepreneur, 80eight is tailored to optimize your time, costs, and compliance complexities. The future of business payments is at your fingertips,” Moti concludes.

All these features are now accessible through the 80eight app.

Provided by 80eight.

80eight operates as a licensed Treasury Outsourced Company (TOC) and an authorized financial services provider (FSP 49010) in South Africa, maintaining regulated operations worldwide. This guarantees compliance and transparency for all clients. Beyond payments, 80eight offers an ecosystem that includes crypto trading, investment tools, wallet infrastructure, and lending for SMEs, all accessible through the 80eight app.