FNB has partnered with BankservAfrica to launch real-time cross-border payments across the Common Monetary Area (CMA) of South Africa, Namibia, Lesotho, and Eswatini for amounts up to N$25,000.
The development comes as FNB’s cross-border payments within the CMA are now processed via EFT, a shift driven by new regulatory requirements.
According to FNB Namibia, BankservAfrica’s Transactions Cleared on an Immediate Basis (TCIB) system was chosen as an ideal replacement, ensuring compliance while enhancing transaction speed, convenience, and security.
“The agreement, signed on 24 September and fully implemented by 18 October 2024, marks a significant milestone for us,” said Ian Erlank, RMB Namibia’s Head of Global Markets.
“The speed and ease with which our customers can make cross-border transactions is of utmost importance. Customers can now enjoy this service without any additional fees or requirements.”
The TCIB system is BankservAfrica’s innovative cross-border payments platform, enabling near real-time transaction clearing. It maintains the simplicity of EFT payments while introducing advantages such as real-time processing, enhanced security, and 24/7 payment capabilities.
“The transition to TCIB was an important step for us,” said Richard Porter, CEO of Forex at FNB South Africa.
“Our clients will experience a seamless, automated process for cross-border payments that feels nearly identical to the EFT process they’re familiar with, but offers significant improvements, including immediate payment clearance, low costs, and high security features.”
One of the standout benefits of the TCIB system, according to FNB, is its transaction speed and flexibility in terms of usage time. Payments can now be processed in near real-time, even outside traditional banking hours, including evenings, weekends, and public holidays.
This convenience marks a substantial improvement over the previous EFT system, which was restricted to standard banking hours.
In the coming months, the bank plans to introduce a system enhancement incorporating an automatic beneficiary account verification process that occurs as soon as beneficiary details are entered, at no extra cost to the client. This added security layer will ensure that all payments are directed to valid accounts, reducing the risk of fraud and errors.
“Over the years, we have made significant investments in integrating advanced technology into our platform-based business, allowing us to transform the FX landscape and, more importantly, the cross-border payments experience for our individual and business clients. With solutions like TCIB added to our cross-border payment offerings, we ensure that clients have a variety of valuable solutions for their individual and commercial needs,” Porter said.
As Africa’s leading automated clearing house, BankservAfrica has been instrumental in developing the TCIB Cross-Border Payment Scheme for the Southern African Development Community (SADC) region.
Launched in 2021, TCIB was designed to simplify cross-border digital P2P payments, reduce remittance costs, and support economic activities across the region. Its expanding network now includes several countries, including South Africa, Zambia, Namibia, and Zimbabwe, with further growth on the horizon.
Tebogo Diphoko, Africa Strategic Business Development at BankservAfrica, stated, “The adoption of TCIB by FNB aligns with the shared goals of both organizations to promote financial inclusion and increase access to financial services across Southern Africa. By enabling low-cost, immediate payments across borders, TCIB fosters greater economic participation between SADC countries for activities such as remittances and day-to-day transactions.”
“We are pleased to partner with FNB and take the lead in introducing this innovative solution to the market. This represents a significant milestone in TCIB’s journey toward ensuring equal access to cross-border payments and promoting inclusive payments throughout the region and the wider SADC community. We believe in the strength of meaningful collaborations to make this possible, reflected in the well-known African proverb: ‘If you want to go fast, go alone. If you want to go far, go together,'” said Ruhling Herbst, Executive Head of Africa Business Development at BankservAfrica.
The partnership between FNB and BankservAfrica marks a new era of efficient and inclusive financial services in the region. With TCIB’s capability to process peer-to-peer remittances, it is set to become the preferred cross-border payment service within the CMA and, potentially, across the broader African continent.
