Digital and financial services solutions firm Vodacom launches a new cash advance product to give the underbanked quick access to funds.
VodaLend Cash Advance complements other offers in the VodaLend Financial Services suite of products, including VodaLend Compare, Voucher Advance and Airtime Advance, according to a Tuesday (August 30) Press release. It is available exclusively to Vodacom customers through the awesome VodaPay app.
“With only 26 million South African consumers having a formal credit record, there is still a significant portion of the population that does not have access to formal financial services,” said the CEO of Vodacom Financial Services. Mariam Cassim. “VodaLend Cash Advance provides affordable access to loan products for those who need these services the most, but have historically been prevented from doing so due to high fees and difficult-to-navigate documents..”
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Cassim went on to say that the in-app platform offers customers a “seamless, convenient and secure process”, calling it a “potential game changer” with lower fees.
“On average, it’s up to 400% cheaper than using a mashonisa [money lender] – it takes us beyond financial inclusion to real financial impact,” Cassim added. Cash advances can range from 50 rand ($2.96) to 500 rand ($29.56), with the option to settle over seven, 14, 21 or 28 days.
The credit decision process includes reviewing a Vodacom customer’s top-up and payment history as well as regulated accessibility verification requirements, according to the statement.
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The decision process aims to ensure that the service can be available to as many people as possible, including new borrowers. Funds are deposited into the user’s VodaPay wallet after approval and can be used immediately.
Since the super app launched in October 2021, it has been downloaded 2.8 million, Cassim said. Based in Midrand, South Africa, the company has operations in Tanzania, the Democratic Republic of Congo (DRC), Mozambique, Lesotho and Kenya, according to its website.
Its mobile networks cover a population of over 303 million people and, through Vodacom Business Africa (VBA), the company provides managed services to businesses in 48 countries.
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