Guiding consumers since 2009

e-Wallets are convenient, but at what cost?

By Athenkosi Sawutana

Capitec Bank is the latest bank to hop on the cash-send bandwagon. E-wallets changed the banking landscape forever, since it allows consumers to send money to people who don’t have bank accounts.

ABSA set the trend in 2008. Before this, people could only send money to someone who had an existing bank account.

Tip: Comparing fees can save you a fortune. Click here to find the best current account for you.

Cash-send services have become popular among consumers because they are convenient, flexible, secure, and less time-consuming. But do you know how much this convenience costs you?

 

eWallet (FNB)

Send-Imali (NedBank)

CashSend(ABSA)

Instant Money  (Standard Bank)

Send Cash (Capitec Bank)

Convenience

The recipient can withdraw money at any FNB ATM or retail partner.

The recipient can receive money at any Nedbank ATM.

The recipient can collect the money at any ABSA ATM.

The recipient can collect the money at Standard Bank ATMs or retail partners.

The recipient can collect the money at Capitec’s retail partners.

Security

The recipient will receive a 4-digit cash collection pin which expires after 24 hours.

The recipient will receive a 6-digit collection pin which expires after 48 hours.

You must share the 10- digit reference and the 6-digit access code number which has been sent to your cell phone.

 

You must share the 4-digit cash collection PIN you selected with the recipient for collection.

You must share the 4-digit pin that you created, and the recipient must present his ID book or smart ID card for collection.

Flexibility

You can send up to R3,000 per day using online banking or the app, and R1,500 using cell phone banking or ATMs.

You can send up to R2,500 per day

 

You can send a minimum of R20 and a  maximum of R3,000.

You can send single or multiple cash vouchers up to R 5,000 a day or R 25,000 a month

You can send up to R5,000 a day or R25,000 a month.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

According to Omar Baig, head of transactional products for everyday banking at ABSA, the bank charges you a base fee of R8.50 and an additional R1.50 for every R100 you send. So, if you send R1,000, you will pay R100 for that transaction. This is the most expensive provider compared to the other banks.

Nedbank is the cheapest provider when it comes to amounts below R1,000.  You’ll pay only R1.85 for such transactions whereas with Standard Bank you’ll pay R10.50. However, if you use Standard Bank’s InstaMoney, you will pay R12.50 for transactions over R1,000. This is R1.50 less than the amount you pay for Nedbank’s Send-Imali which costs R14.00.

Capitec and FNB have a flat rate of R8.50, and R10.00, respectively.

All the banks set a limit on the amount you can send. With Capitec Bank and FNB you can send up to R5,000 a day, depending on the platform you’re using, but not more than R25,000 a month.

Nedbank allows you to only send R2,500, while ABSA allows you to send R3,000 a day.

Depending on the service provider, the transaction is automatically cancelled, and the funds are returned to the initial funding account if it's not collected after a certain period. This period ranges from 7 to 30 days.

While these services were initially intended for low-income consumers, businesses are now using it to pay their low-income employees, and students have become the biggest users of e-wallets.

According to Philippa Weimer, head of transactional products at Nedbank, the number of people using these services grows every year. The number of clients using Send-Imali alone grew by 48% in 2018.

Weimer points out that Nedbank processes an average value of R600 per transaction. FNB also experienced a growth in transactions to the value of R750 million by 2011.

Cash-send services can also help you send money to yourself if you forgot your card at home.

Even though you can collect your money at the ATM with other banks, Capitec Bank is the only bank that does not grant you that privilege. With it, you can only collect your money at Shoprite, U-Save, and Checkers, and you must have your ID with you.

Having your own bank account could help you manage your money better. Learn more about affordable bank accounts by clicking here.

 

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