This month, the fintech company 80eight has made headlines in the financial services sector by announcing a three-month waiver on SWIFT fees for forex transactions.

Additionally, they have slashed bank forex fees by as much as 50%, marking a notable reduction in the usual charges banks apply to forex transactions.

“A significant number of South Africans are unaware of the scale and nature of the banking fees they incur,” comments Faadil Moti, CEO of global payments company 80eight.

“They see monthly service fees that can amount to hundreds or even thousands of rands but seldom question these costs. They tend to overlook additional fees for inter-bank transfers, ATM withdrawals, and forex transactions,” he elaborates.

“Banks apply charges every time money is moved, unless the transfer is between accounts within the same institution,” Moti notes.

Bank customers are starting to recognize the benefits of conducting transactions outside conventional banks, he observes. This transition not only results in considerably lower fees but also offers quicker transaction times and better customer service.

One subtle way that banks validate high fees is by providing a “mid-market rate” for forex trades. Customers should focus instead on the buy-sell spread, which indicates the discrepancy between the buying and selling rates of foreign currency.

This spread can fluctuate between 1.6% and 3% or more, which reflects the real cost of forex transactions. Furthermore, obligatory SWIFT fees of R500, along with administrative fees or commissions, contribute to the total expense. Together, these could increase the overall cost to more than 3% of the transaction value, according to 80eight.

“Many bank customers are not aware that they can perform forex transactions without involving a bank. We guarantee that our services are both cheaper and more efficient,” asserts Moti.

“Our pricing is clear and transparent—clients benefit from spreads that are up to 50% lower than those of conventional banks, and there are no hidden charges. You’ll know what you’re paying for, and the savings will be apparent right away.”

Moti explains that banks have exploited customers’ reluctance to switch institutions due to the associated paperwork and administrative hassles, leading to minimal competition affecting their fee structures.

“You don’t have to change banks to collaborate with us. We can provide significantly better forex rates than your bank, ensure faster transaction times, and assign you a personal consultant to assist with your transactions and navigate regulatory compliance,” he adds.

80eight signifies a new wave of fintech utilizing various channels for cross-border transactions.

“Though we employ advanced technology for our services, our clients primarily ask: can we facilitate faster and more cost-effective cross-border payments than anyone else? The answer is yes, we consistently do,” Moti asserts.

Another domain where 80eight is taking on traditional banks is by providing trade and diverse financing solutions for small and medium-sized enterprises (SMEs) aiming to expand their operations.

“Some clients need short-term financing to grow or to fund import shipments. Bank approval processes are notoriously sluggish and often unaccommodating to SMEs. There’s a sizeable market that can be served by understanding these smaller businesses,” Moti remarks.

“We assist them not just in securing the necessary financing but also offer access to our broad network of suppliers and potential clients across the Middle East, Asia, and Europe,” he adds.

A fruit exporter partnered with 80eight has effectively streamlined its cross-border payments and addressed its forex needs. With quicker settlement times and significantly lower fees, the exporter could focus more on scaling operations.

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

“Whether you’re an importer, exporter, or a tech-savvy entrepreneur, 80eight is designed to save you time, money, and compliance headaches. The future of business payments is here, just a tap away,” concludes Moti.

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, with regulated global operations. This ensures compliance and transparency for all clients. In addition to payments, 80eight offers an ecosystem that includes crypto trading, investment tools, wallet infrastructure, and lending for SMEs, all available through the 80eight app.