What remittance companies need to know about money transfer in South Africa

By December 4, 2017Blog Posts

Money transfer can seem confusing, especially with base rates, spreads, margins, service fees etc that are all common terminologies but mean little to clients. Bottom line is the user wants to know what costs are involved and whether they are getting the best transfer rates.

Important to note as well is South Africa is a big dealer in remittance transfer to and from the country. This implies that many remittance businesses often target the market therefore breeding stiff competition between themselves to serve the people in South Africa.

What Remittance Businesses seeking the upper hand in South Africa need to know

Companies dealing in movement of remittance to and from the country should understand that with the aggressive competition, cost cutting is a key aspect therefore every part of their operations that can be simplified should be done so to ensure that the business reaps greatly from the venture.

Instead of setting up a host of physical branches across the country, a business is advised to instead tap into South Africa’s online payment system. Online banking is the key payment style in the region – marshalled by the big banks in the country i.e ABSA, Nedbank, Standard bank, FNB and Capitec bank.

A remittance company that accesses its clients through the online banks mentioned also provides convenience for its clients which is a bonus that can create a competitive advantage for the business because the people receive money through the banks they are familiar and comfortable with.

Remittance businesses and how they can work with South Africa’s banking systems

Most remittance companies serving people in South Africa are of foreign origin and might not necessarily use the above 5 banks that run the show in South Africa but with Dusupay, these remittance businesses can easily send money to the recipients in South Africa, who receive it swiftly on their bank accounts.

This saves the business time and costs in operations when trying to directly deal with people by setting up branches everywhere.

Why do that, when all you can do is incorporate with Dusupay and let it send money direct to the clients’ accounts thus giving the remittance company an edge over the rest.