Vodacom launches new cash advance service
VodaLend Cash Advance is the latest product to be added to the VodaLend financial services suite, which includes VodaLend Compare, Voucher Advance, and Airtime Advance.
"The new addition is geared towards underbanked consumers who need quick and barrier-free access to funds, whether it’s an emergency doctor’s visit or topping up pre-paid electricity just before payday," Vodacom explained in a statement.
"Available exclusively to Vodacom customers through the VodaPay super app, the financial services offering forms part of the telco’s purpose-led ambition which includes accelerating financial inclusion for all South Africans," Vodacom said.
“With only 26 million South African consumers having a formal credit record, there is still a significant part of the population that doesn’t have access to formal financial services. VodaLend Cash Advance provides access to lending products for those who need these services most, but who have historically been prevented from doing so due to high fees and difficult-to-navigate paperwork,” says Mariam Cassim, CEO of Vodacom Financial Services.
Vodacom customers can access a cash advance from R50 and up to R500, with the option to settle it over seven, 14, 21 or 28 days.
In addition to the regulated requirements for affordability checks, the credit decision process is enhanced by also looking at a Vodacom customer’s recharge and payment behaviour. This ensures that the service can be accessed by more people, including first-time borrowers who can now enjoy the benefits of a secure, regulated lending solution.
Once approved, the money is advanced directly into the user’s VodaPay Wallet. It can be used for in-app purchases, including buying prepaid electricity and water, paying bills, scan-to-pay in shops, and sending money to friends and family.
Consumers are shifting their behaviour due to increased financial burdens, like a higher cost of living. This places a greater need for companies to deliver personalised, innovative, and accessible services. Vodacom Group’s recent financial results for the year ended 31 March 2022 reveal growth for the telco’s new financial- and digital services – up by 8.5%– and indicate that meeting this need is on a positive trajectory.
The VodaPay super app is available for download from the Apple and Android app stores. To access VodaLend Cash Advance on VodaPay, click on Services on the Home Menu, and find VodaLend Cash Advance under Finance.
