In a striking challenge to the traditional forex landscape, payments company 80eight has cut two major cost barriers for cross-border payments.
Starting immediately, SWIFT fees – typically ranging from R500 to R1 000 per transaction – have been waived for three months. Next, 80eight has slashed the cross-border payment fees charged by the banks by half.
Most – but not all – of the banks’ fees are hidden in buy-sell spreads, something that is seldom questioned by customers. This can cost 2-3% of the transaction value, not counting SWIFT fees and ‘admin’ fees.
“We’ve taken away two of the biggest costs of sending money cross-border,” says Faadil Moti, CEO of 80eight.
“Forex fees in South Africa are exorbitantly high compared to global standards, and it’s been unchallenged for too long – we’re here to change that by eliminating SWIFT fees for the next three months and slashing forex fees by up to 50%.”
A Moneyweb analysis shows major banks charge between R0.40 and R1 per USD, translating to 2.2% to 5.5% of the transaction value – and that excludes SWIFT fees and other add-ons. Larger corporates may negotiate better rates, but individuals and small businesses are left with the full burden.
“These fees are unjustifiably high,” adds Moti. “We’ve proven we can cut spreads by 50%, so why can’t the banks? More competition is overdue.”
How forex fees are eating your profits
These savings are substantial enough to grab the attention of businesses locked into the traditional banking model.
“Many new customers who sign up with us have the mistaken belief that if they transact their forex through us, they end up paying twice – once to 80eight and again to the banks. That is not true – you only pay one, low rate for forex,” says Moti.
“Another question we get asked is whether clients will have to switch to a new bank account. The answer to that is no.”
SWIFT, a network linking over 11 000 financial institutions across 200 countries, enables international transfers but allows banks and intermediaries to tack on costs. That R500 SWIFT fee, repeated multiple times a month, quickly adds up to a significant expense.
“We’ve run models for clients to show how much these SWIFT fees are eating into their cross-border transactions, and it can get quite staggering the more transactions you do,” says Moti.
“For small businesses, this cuts your profit margins if you are involved in international trading. For individuals looking to invest abroad, these fees reduce the capital at your disposal once converted into foreign currency – and that reduces the compounding effect once you start investing.”
Moti says no one ever questions these costs as they are considered unavoidable.
“Well, we’ve just cancelled SWIFT fees for clients for the next three months, so that demonstrates that these costs are avoidable,” he adds.
Unlike banks, 80eight imposes no commissions or admin fees, amplifying savings with the SWIFT fee waiver.
“Banks rely on inertia,” Moti says. “Our approach disrupts that. Clients don’t need to switch banks or face double charges. By aggregating transactions, we secure superior rates for everyone.”
Leveraging advanced fintech, 80eight ensures fast, cost-effective transfers, prioritising results over technical jargon.
Personalised service and flexibility
Each client is assigned a dedicated consultant to monitor payments, eliminating the frustration of chatbots or endless call waits.
As Moti points out: “Clients value outcomes.”
This human touch – paired with a user-friendly platform – sets 80eight apart.
For many, the fact that they don’t need to abandon their existing bank is reassuring, and Moti stresses that there is no need to switch. “Our efficiencies and cutting-edge tech allow a single payment, delivering savings without disruption.”
Beyond payments: Supporting SMEs
80eight extends its impact by offering financing for small and medium-sized enterprises (SMEs) seeking to trade or expand. This includes connecting them to a network of over 30 000 international businesses across the Middle East, Asia, and Europe.
“We saw that clients needed more than payments – they require capital and contacts to grow,” Moti explains.
“Our solutions and global network empower their success.”
This triple opportunity – eliminating SWIFT fees, halving spreads, and supporting business growth – positions 80eight as a game-changer in South Africa’s forex market, challenging banks to rethink their pricing in a more competitive era.
All of this is now available on the 80eight app.
80eight operates as a licensed Treasury Outsourced Company (TOC) and 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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