Vodacom’s diversification into financial services is slowly paying off for the Vodafone-owned mobile phone operator.
The company announced on Monday that revenue from its Financial Services business jumped by 37.1% to almost R1 billion, as Airtime Advance, insurance and its recently launched VodaPay service all gained in popularity.
“Our strategic focus on financial services supported strong performance, growing revenue by 37.1% to R972 million,” said Shameel Joosub, Vodacom’s CEO.
The mobile phone operator said it has advanced R4.9 billion in airtime via its Airtime Advance platform to 9.9 million customers.
Furthermore, Vodacom added that its insurance revenue rose 21.8%, and attributed this growth to the launch of ‘innovative products’.
“We continue to expand on our financial services offerings; in June 2019, we launched VodaPay, enabling direct airtime purchases and bill payments for electricity and other payments,” said Joosub.
“We will also expand M-Pesa internationally and our Financial Services and Digital Lifestyle businesses in South Africa with the expectation that these will increasingly contribute to revenue growth.”