Vodacom Group has announced a major milestone in its expansion into financial services, with the company revealing that it has processed a staggering US$400.2 billion through its mobile money platforms, including Safaricom, over the past year.
Shameel Joosub, the CEO of Vodacom Group, emphasized the strategic importance of financial services, stating that they are a clear priority for the Group and represent the largest component of beyond mobile services.
The company’s M-PESA service, aimed at enhancing financial inclusion through offerings such as loans, savings, international money transfer, and merchant services, has experienced substantial growth. Launched in 2007 in Kenya, M-PESA is now operational across eight countries, with over 60 million monthly users and a vast ecosystem connecting them to merchants, businesses, developers, and agents.
In addition to M-PESA, Vodacom Group’s super-apps VodaPay and Vodafone Cash are integral to pursuing its financial services objectives, as they bring together the company’s products and services with its partners.
The company’s financial services revenue for the quarter reached US$179 million, buoyed by impressive local currency growth in Egypt and strong performance in South Africa, particularly in the insurance and Airtime Advance categories.
Joosub highlighted Egypt’s stellar performance, with a 43.7% growth in local currency service revenue, and South Africa’s resilience, which achieved a 1.8% increase in service revenue. Additionally, Tanzania and the Democratic Republic of Congo significantly contributed to the 5.7% growth in Vodacom Group’s International business.
Vodacom’s commitment to becoming Africa’s leading fintech provider is evident in its recent focus on pursuing its fintech strategy, underscoring the critical role financial services play in the company’s business model.
