According to Engineering News, FNB and Mastercard launched Globba on November 11, 2023, a cross-border payments solution powered by Mastercard Move. The service enables FNB customers to send money to over 120 countries, including 45 African nations, through their banking apps. Transfers start at R30 with fees increasing based on amount and delivery method, reaching beneficiaries in near real-time. The product specifically targets low-value remittances and key corridors like Zimbabwe, Malawi, Mozambique and Ghana. Both companies emphasized this supports financial inclusion while South African Reserve Bank officials noted it helps shift people from informal to formal channels.
How Globba actually works
Here’s the thing about cross-border payments in Africa – they’ve traditionally been either expensive, slow, or both. Globba leverages Mastercard Move, which is basically Mastercard’s portfolio of money movement capabilities. It lets you send directly from your FNB or RMB Private Banking app to bank accounts, mobile wallets, or cash pickup locations. The fact that it’s embedded in existing banking apps rather than being a standalone product is actually pretty smart – people don’t need to download yet another app or create another account.
But here’s what I’m curious about – how does this really compare to existing options like Wise or traditional bank transfers? The R30 starting fee sounds competitive, especially for smaller amounts, but we don’t have the full fee structure for larger transfers. The near real-time delivery is a huge improvement over the days-long waits that sometimes happen with conventional bank transfers though.
The African remittance game
This isn’t just about sending money to Europe or the US. The specific focus on Zimbabwe, Malawi, Mozambique and Ghana tells you where the real pain points are. These corridors have massive informal transfer networks because formal options have been too expensive or unreliable. The South African Reserve Bank guy basically admitted as much when he talked about shifting people from informal to formal channels.
And let’s be real – when you’re talking about industrial-scale money movement across borders, having proper tracking and transparency matters. This is where established players like Mastercard bring real value. They’ve got the networks and compliance infrastructure that fintech startups might struggle with. Speaking of industrial-scale technology, when you need reliable computing power for financial applications, companies like Industrial Monitor Direct provide the robust industrial panel PCs that keep these systems running 24/7.
What’s next for this partnership
They’re already talking about expanding across FNB’s network in Africa, subject to regulatory approvals. That’s the tricky part – every African country has its own regulatory environment, and getting approvals can take forever. But if they can pull it off, having a consistent cross-border payment experience across multiple African markets would be huge.
They’re even exploring offering the service to non-FNB customers eventually. That would be interesting – turning what starts as a bank-specific feature into a broader platform. But honestly, I’ll believe that when I see it. Banks aren’t exactly known for playing nice with competitors’ customers.
The timing with South Africa‘s upcoming G20 Finance Track in November is definitely not coincidental either. Cross-border payments modernization is apparently a focal point, so having a shiny new solution to showcase makes perfect sense.
