Global payments company 80eight is shaking up South Africa’s forex market by eliminating SWIFT fees for the next three months and slashing spread fees by up to 50%.
“SWIFT fees are a grudge payment that South Africans resent,” says Faadil Moti, CEO of 80eight. “We’ve decided to eliminate these for the next three months, on top of cutting typical cross-border spread fees by 50%.”
The spread fees – often as high as 3% of the transaction value – are where the banks make most of their forex profits.
This is a disguised cost, adds Moti. When bank customers send money abroad in US dollars, they are quoted a mid-market rate that sits between a buy and a sell rate.
“What customers should be focusing on are these hidden costs. On a R1 million cross-border transaction, the spread can easily swallow R20 000 to R30 000. That eats into your capital if you’re investing overseas and reduces your spending power abroad if you’re travelling or purchasing goods internationally.”
A Moneyweb analysis shows that major South African banks charge between R0.40 and R1 per US dollar purchased, translating to a markup of 2.2% to 5.5%.
The hidden spread cost is separate from the SWIFT fees, which typically amount to between R500 and R1 000 per transaction – a figure that can quickly add up for those making regular payments.
Swift but costly
SWIFT, the global messaging network connecting over 11 000 financial institutions across 200 countries, facilitates international transfers through correspondent banks, each of which charges a fee.
There’s growing criticism of excessive SWIFT fees for what is essentially a secure electronic messaging system.
Critics argue that the infrastructure costs for SWIFT, which has been operational for decades, do not justify such high per-transaction fees – especially when compared to domestic electronic transfers, which are often free or low-cost. The pain of these fees is particularly acute for smaller payments.
Some banks then add further costs on top of that, such as admin fees or commissions. 80eight charges no admin fees or commissions – just a single, low spread fee.
While 80eight has cancelled SWIFT fees for the next three months, the 50% reduction in typical spread fees has no time limit.
Moti explains: “Just as we think SWIFT fees are not justifiable, we also think the banks’ usual 2-3% charge on the buy-sell spread cannot be sustained. Competition has to enter this market, and that is what we are bringing.
“If we can cut these fees by half, why can’t the banks do the same?”
Put 80eight to the test
80eight has issued a challenge to any South African looking to send or receive foreign currency.
“Put us to the test. If you are sending money abroad, you should be shopping around, so give us a try and see how we can offer more competitive rates than traditional providers,” says Moti.
“I think most South Africans will be shocked by how much they can save with us.”
The benefits of advanced tech
Using advanced fintech, 80eight streamlines transactions and pools them to secure better rates, passing the savings directly on to clients.
Each customer is assigned a dedicated consultant rather than a chatbot for personalised support and full transparency. Detailed transaction records are also provided to meet regulatory requirements.
Clients don’t need to change banks and can pay only one, low fee to 80eight.
Financing for SMEs
80eight goes a step further, providing financing for small and medium-sized enterprises (SMEs) looking to trade or expand their businesses. That includes access to a network of suppliers and potential buyers across the Middle East, Asia and Europe.
Access to 30 000 international businesses
Beyond facilitating cross-border payments and financing for SMEs, 80eight has built an international network of more than 30 000 businesses to help expand markets for its local clients.
“We can connect them with trusted suppliers abroad or help them find new markets for their products in Asia, the Middle East and Europe,” says Moti.
“For many of our clients, this has catapulted them into an entirely different league.”
By removing SWIFT fees, slashing spreads, and offering both financing and global connections, 80eight is making cross-border payments and trade more affordable and accessible for South Africans.
All of this is now available on the 80eight app.
80eight operates as a licensed Treasury Outsourced Company (TOC) and an authorised financial services provider (FSP 49010) in South Africa, with regulated operations globally. This ensures compliance and transparency for all clients. Beyond payments, 80eight’s ecosystem includes crypto trading, investment tools, wallet infrastructure, and lending for SMEs – all accessible through the 80eight app.
Brought to you by 80eight.
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