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Capitec's Push Into The Business Market

Capitec is shaking things up in the business banking world, and it’s making the big bank and fintech startups sit up and take notice.

A Totally New Approach

If you run a small business you no doubt have wanted a “tap to pay” or card machine to process client payments.

The pricing on these items can be complicated and expensive but Capitec Bank is looking to change that.

Instead of charging businesses heavy monthly rental fees for these card machines, Capitec now lets you buy the devices outright (with prices starting at just R1,499). That’s a game-changer, especially when you consider that traditional banks charge around R400 per month just for renting a terminal!

On top of that significant difference, Capitec has also slashed transaction fees, offering some of the lowest rates in South Africa—up to 60% less than the competition. That’s pretty significant for businesses of all sizes.

Bringing Bunches of Clients On Board

The bold strategy is working and clients are streaming in.

In just 10 days, Capitec sold 5,000 card machines, and in a single month, it signed up nearly 11,000 merchants.

Business banking sign-ups are also skyrocketing, with 69,000 new accounts opened in just six months last year. To sweeten the deal, the bank’s transaction fees are now standard across both personal and business accounts, with a simple R50 monthly admin fee for businesses. 

That’s easy to budget for unlike some of the complicated pricing other banks offer.

Disrupting the Status Quo

With South Africa’s payment space getting more competitive, Capitec’s bold approach is making it a serious contender in the business space.

And it seems to be working as businesses are opening accounts left and right and the bank is selling lots of card machines to small businesses each week.

By offering a high level of price transparency, lower fees overall, and a far simpler model, it’s giving the traditional banks—and fintech companies—a real run for their money.