A warning to international businesses, bank fees are unnecessary and killing your business. FX Paymaster educates South African businesses that there is a better way of doing business overseas, and one that does not have to involve hidden fees.

If you send money overseas for offshore investment or if you make regular payments to foreign suppliers, it’s in your best interest to shop around to make sure you aren’t paying too much. Most South Africans use major banks to transfer money overseas despite the poor rates and high transfer fees. The bulk of that cost is hidden in a poor exchange rate. This makes it difficult for people to see what they are being charged to transfer money. Most banks add around 1.5 – 2 % to the exchange rate AND charge anywhere between R 600 – R 1,200 in transfer fees. By international standards, the costs are almost 13X higher than in countries like the UK where you can transfer money abroad for R88. (£4 HSBC).

Based on our extensive market knowledge and research, we believe that consumers continue to use banks simply because they are not aware of any better alternatives.

In fact, the general perception in the market is that pricing among bank’s is similar so there’s little to be gained by switching providers, and they’re not entirely wrong. Transferring money through a traditional is the only option, but there is a better way. Digital money transfer businesses like FX Paymaster are challenging traditional banks when it comes to international transfers, and not just on fees but speed and convenience too. Using their innovative online money transfer platform, South African businesses can now transfer money to over 38 countries at the click of a button. They are in control of their transactions and can manage the costs to their benefit.

FINTECH IS DISRUPTING SA BANKS

According to FX Paymaster Co-Founder Mike Steenkamp, one of their major selling points is the introduction of fixed fees for businesses. “We add a small margin of 0.5% to the exchange rate and only charge R 250 to transfer funds abroad. Our rates are highly competitive and 100% transparent.” Mike believes, banks can’t compete at this level. Using the latest payment technology to process payments, FX Paymaster makes money transfer faster, cheaper and easier to deal with than any bank in South Africa.”

It’s time to educate South African businesses that there is a new way of doing business overseas, and it does not have to involve hidden fees.