Why more Lesotho migrant workers are choosing fintechs to send money home

Every month, Mampe Seema, a Johannesburg-based domestic worker, remits part of her salary to her family in Lesotho.

The money covers school fees, groceries, and other household expenses. For years, sending money across the border was straightforward. Then the process began taking longer and required additional steps.

“When the banking process became more difficult, I worried that my family would not receive the money when they needed it most,” Seema told TechCabal. “I decided to try Mukuru after hearing about it from a friend. The registration was straightforward, and I could send money without the uncertainty I had started experiencing elsewhere.”

The 53-year-old mother of two is among a growing number of the estimated 400,000 Basotho migrants in South Africa turning to fintechs like Mukuru, Sasai, Ria Money and hello Paisa as cross-border payments become more complex. The shift highlights how regulatory changes are reshaping consumer behaviour and expanding the role fintechs play in regional payments.

In 2025, the South Africa Reserve Bank’s (SARB) changes affecting low-value cross-border electronic fund transfers (EFTs) within the Common Monetary Area (CMA) introduced stricter processing and verification requirements for some transactions. The CMA includes South Africa, Lesotho, Namibia, and Eswatini.

The measures were designed to strengthen anti-money laundering controls, reduce illicit financial flows, and improve compliance with international financial standards.

While the changes aim to improve oversight of the financial system, they have also added friction for some consumers accustomed to moving money between South Africa and Lesotho with minimal documentation. In some cases, users have faced additional verification requirements and longer processing times.

For Lesotho, where remittances are a significant source of household income, these changes have direct implications. According to data from the World Bank, personal remittances account for almost 20.9% of Lesotho’s GDP. Statistics South Africa estimates that the 400,000 Basotho living and working in South Africa make up about 11% of the country’s immigrant population.

Cape Town-based Mukuru, a global fintech which says it serves over 17 million across Africa, Europe, Asia and North America, says the SARB’s ban on EFTs to CMA countries has attracted new customers who previously relied on traditional banking channels. Mama Money, Shoprite and Nedbank’s Zaca are the other major money transfers that have entered the Lesotho market.

“Historically, Mukuru focused on serving unbanked customers, but we are now seeing that even banked customers are facing difficulties when trying to send money home,” said Maleseli Mohapinyane, Mukuru’s country manager for Lesotho.

The company launched its South Africa–Lesotho corridor in 2016 and now operates across 22 remittance corridors globally. According to Mohapinyane, the company is seeing increased interest from customers looking for alternatives to conventional cross-border payment channels.

For Thabiso Nthunya, a mineworker in the Free State Province, what matters most is that the money reaches his family quickly.

“When your family is waiting for money to buy food or pay bills, you need to know it will arrive without delay. Travelling home just to take money to my family is expensive, and carrying cash is not ideal,” he said.

Moroesi Koali, Sasai Econet Financial Services Marketing Manager, agreed with Nthunya that convenience is one of the main reasons migrant workers are increasingly opting for their fintech-based remittance services.

“For many migrant workers, convenience is key,” she said. “They can send money home knowing recipients can access the funds immediately through a wallet or an agent network, without needing to travel long distances or navigate multiple banking processes,” she said.

However, Access Bank says its remittance business to Lesotho has remained largely upbeat despite the regulatory changes and competition from digital payments platforms. Naco Bolote, the bank’s Head of International Remittances, described Lesotho as an important corridor and said the lender had continued to serve the market effectively.

“As a bank, there has not been any noticeable impact for us because our market dynamics are a little different from those of remittance companies. That is because our cross-border payments are at a more formalised level,” he said.