No SWIFT Fees on Your Forex Transactions!

The global payments company 80eight has delivered a significant announcement to South Africa’s forex market: for the upcoming three months, all SWIFT fees will be waived, along with a reduction of up to 50% on another major expense – the ‘spread’ fees.

“SWIFT fees are a necessary burden that South Africans dread,” states Faadil Moti, CEO of 80eight. “Currently, payments that traverse borders cost between R500 and R1,000, a standard that has remained unchanged for years. We’ve chosen to remove these fees for our customers for the next three months, particularly benefiting those who make frequent offshore payments.”

SWIFT, or the Society for Worldwide Interbank Financial Telecommunication, is a vast messaging network connecting over 11,000 financial institutions in 200 countries, facilitating international transfers through a series of correspondent banks, each taking a share.

In addition to eliminating SWIFT fees, 80eight has also slashed the so-called ‘spread’ fees by as much as 50%.

These expenses have been a burden on South African individuals and businesses for decades. By addressing these hidden fees, 80eight is reshaping the landscape of cross-border payments, offering a more affordable and transparent solution.

“Anyone who has lived or worked abroad understands that South Africa’s forex fees are excessively high,” Moti adds. “It’s been regarded as the norm, revealing a lack of competition in South Africa’s forex sector. Our mission is to change that.”

Sky-high fees have long plagued the forex market in South Africa, often compounding one another, making international transactions unduly costly.

The major expense in any forex transaction is the spread fee, which represents the difference between buying and selling prices, typically accounting for 2% to 3% of the total transaction value or more.

A Moneyweb analysis shows that leading South African banks charge R0.40 to R1 per US dollar purchased, resulting in a markup ranging from 2.2% to 5.5%. These spreads, often obscure to consumers, are the largest hidden cost in forex dealings.

Some banks also impose additional costs, like admin fees or commissions. Conversely, 80eight levies no admin fees or commissions – only one low spread fee.

“Most individuals are unaware of the hefty charges they incur for forex transactions,” Moti highlights. “When we break it down for them, many are often taken aback.”

For regular cross-border transactions, these fees can accumulate significantly, constraining budgets and limiting financial flexibility.

With the cancellation of SWIFT fees for the next three months and a 50% reduction in spread fees, 80eight is tackling two of the most significant challenges in cross-border payments.

“This provides substantial advantages for individuals and SMEs, who usually have no bargaining power with banks. They receive forex rates on a take-it-or-leave-it basis. These bank fees are simply excessive and unjustifiable in our view. We’ve shown that we can reduce spreads by 50%. So why can’t the banks?” Moti questions.

By eliminating commissions and admin fees, 80eight reduces the layers of charges clients confront.

What sets 80eight apart is its employment of advanced fintech to optimize transactions and secure better rates. By consolidating transactions, the company achieves economies of scale, passing the savings directly to clients.

“Clients prioritize outcomes, not the technology driving it,” Moti asserts. “They want secure and prompt payments to reach their destination, along with a reliable contact to address inquiries or follow up on transactions. That’s what we provide. Each customer is assigned a dedicated consultant, a knowledgeable human in the forex market, rather than a chatbot, to support them.”

This personalized approach increases transparency and trust, ensuring clients feel supported throughout their journey.

Thorough record keeping

Additionally, 80eight maintains comprehensive transaction records, supplying clients with the documentation often required by financial institutions or regulators.

No need to switch banks

There’s no necessity to change banks, Moti emphasizes. “Many customers initially fear they need to pay forex fees twice – once to their bank and once to us. They only pay one low fee to 80eight.”

Financing for SMEs

80eight extends its services by offering financing solutions for SMEs looking to trade or expand, including access to a network of suppliers and potential buyers in the Middle East, Asia, and Europe.

Access to 30,000 international businesses

In addition to facilitating cross-border payments and financing for SMEs, 80eight has developed an international network of over 30,000 businesses to assist local clients in expanding their markets. “We can connect them with reliable suppliers abroad or help them find new markets for their products in Asia, the Middle East, and Europe. For many of our clients, this has elevated them to a completely new level,” says Moti.

All these services are now available through the 80eight app.

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

Presented by 80eight.

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