ADDING PRODUCTS
Vodacom Financial Services now incorporates VodaLend Cash Advance
Photo by: Bloomberg
Information and communication technology group Vodacom’s financial services arm has launched a new product that enables underbanked customers access to quick and secure cash.
Vodacom Financial Services now incorporates VodaLend Cash Advance, adding to the suite of financial products, which includes VodaLend Compare, Voucher Advance and Airtime Advance.
The new financial services offering, available exclusively to Vodacom customers through a seamless, convenient and secure process within the VodaPay super app, forms part of Vodacom’s ambitions to accelerate financial inclusion for all South Africans.
Customers can access a cash advance between R50 and R500, with the option to settle it over 7, 14, 21 or 28 days.
“The new addition is geared towards underbanked consumers who need quick and barrier-free access to funds, whether it is an emergency doctor’s visit or topping up prepaid electricity just before payday,” explains Vodacom Financial Services CEO Mariam Cassim.
“VodaLend Cash Advance provides affordable access to lending products for those who need these services most, but who have historically been prevented from doing so, owing to high fees and difficult-to-navigate paperwork.”
Vodacom’s credit decision process, in addition to the regulated requirements for affordability checks, is enhanced by reviewing a Vodacom customer’s recharge and payment behaviour.
Upon approval, the money is advanced directly into the user’s VodaPay Wallet, where it can be used instantly for in-app purchases, including buying prepaid electricity and water, paying bills, scan-to-pay in shops and sending money to friends and family.
“This innovative product is a potential game changer, as its fees are less than traditional short-term cash advance providers. On average, it is up to 400% cheaper than using a mashonisa – it moves us beyond financial inclusion to real financial impact,” Cassim continues.
This offering comes as consumers shift their behaviour amid increased financial burdens, such as higher cost of living, placing a greater need for companies to deliver personalised, innovative and accessible services.
Cassim points out that Vodacom Group’s recent financial results for the year ended March 31 reported 8.5% growth for the group’s new financial and digital services and, since its launch in October last year, the Vodacom super app has reported 2.8-million downloads, showing an appetite for participation in the digital economy.