Are South African banks ready to go global?

Whether booking a flight, ordering from an international online store, or paying for a streaming subscription, cross-border spending has quietly become part of everyday life for many South Africans.

However, while consumer behaviour has gone global, local banking systems have been slower to adapt. For many people, spending money beyond South Africa’s borders still comes with friction: unexpected international transaction fees, unfavourable exchange rates, extra card charges, or even declined payments. Individually these costs may seem small, but over time they add up - making global living more expensive than it needs to be.

“Many traditional banking models were designed for a world where financial activity was largely domestic, which means most banks still treat international spending as an exception,” says Nolwazi Nzama, Group Executive of Special Projects and Operations at GoTyme Bank. “In today’s connected economy, that gap between how people live and how banks operate is becoming more noticeable.”

Why cross-border fees still hit you

At the heart of the issue is legacy infrastructure. Traditional banking systems were built for a time when most transactions happened locally. As a result, international transactions are often treated as specialised services rather than everyday use cases.

When you pay for goods or services in another currency – whether on holiday or online –banks typically apply a combination of charges, including:

• An international transaction fee (as a percentage of the purchase)
• Foreign exchange margins (added to the conversion rate)
• ATM or overseas withdrawal fees
• Exchange control or processing fees

These layered costs are not always transparent, making it difficult for consumers to predict the true price of cross-border spending.

How South African banks price global spending

Here’s a snapshot of how major South African banks typically charge for international transactions – showing why many consumers feel “penalised” for spending beyond borders:

• Most major banks charge a processing or authorisation fee on international card transactions, whether these occur abroad or online.
• Currency conversion is usually accompanied by an exchange rate mark-up, meaning consumers pay more than the prevailing market rate.
• Some banks have built platforms or specialised apps for foreign exchange and transfers, but these still include SWIFT or intermediary fees and commission charges for international payments.
• Cash withdrawals abroad present another cost layer. In addition to local ATM fees charged by the foreign bank, South African banks may apply separate cross-border card and conversion fees – which means another cost of travel spending.

“For many South African consumers, this means paying extra for every foreign purchase or swipe — even for your Netflix subscriptions or online shopping from your coach at home. These accumulating fees can be hard to predict upfront, leaving most of us feeling penalised just for living or spending globally,” Nzama comments.

That’s why choosing a bank that eliminates international transaction fees and complicated pricing structures makes a real difference.

Rethink banking for a borderless lifestyle

As global commerce becomes increasingly digital and borderless, expectations of banking are shifting. Banks now face a choice: continue to treat international spending as a premium service, or redesign everyday banking to support global use as the norm.

“Consumers deserve payment systems that reflect how they live - flexible, transparent and friction-free across borders,” Nzama says. “That is why we designed the GoTyme Bank account for life in a global world, where you should be able to travel without worrying about international transaction fees, shop online from overseas retailers without hidden costs, and pay for global streaming and digital subscriptions at no extra cost,” says Nzama.

“The question is no longer whether South Africans will spend across borders – they already do. The real question is whether banks will evolve to support that reality without penalising consumers for participating in a global economy,” Nzama concludes.