Vodacom launches VodaLend Cash Advance for underbanked customers, digital platforms and services
Vodacom Financial Services has launched VodaLend Cash Advance, a product that provides customers with fast and secure access to cash when they need it most. 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 aimed at underbanked consumers who need quick, barrier-free access to funds, whether it’s an emergency medical visit or a prepaid electricity top-up just before the payday.
Available exclusively to Vodacom customers through the VodaPay super app, the financial services offering is part of the telecom operator’s ambition, which includes accelerating financial inclusion for all South Africans, to that no one is left behind.
“With only 26 million South African consumers having a formal credit history, there is still a significant portion of the population that does not have access to formal financial services. 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. It is also accessible within the app on a trusted digital platform, enabling a seamless, convenient and secure process for customers,” says Mariam Cassim, Managing Director of Vodacom Financial Services.
Vodacom customers can access a cash advance from R50 up to R500, with the option to pay for seven, 14, 21 or 28 days. In addition to regulatory requirements for affordability verification, the credit decision process is enhanced by also looking at a Vodacom customer’s charging and payment behavior. This ensures that the service is accessible to more people, including new borrowers who can now enjoy the benefits of a secure and regulated lending solution. Once approved, the money is advanced directly to the user’s VodaPay wallet. It can be used instantly for in-app purchases, including buying prepaid electricity and water, paying bills, scanning to pay in stores, and sending money to friends and family .
“This innovative product is a potential game changer, as it has lower fees than traditional short-term cash advance providers. On average, it’s up to 400% cheaper than using a mashonisa – it allows us to go beyond financial inclusion towards real financial impact,” adds Cassim.
Consumers change their behavior due to increased financial burdens, such as a higher cost of living. This forces companies to provide personalized, innovative and accessible services. Vodacom Group’s recent financial results for the year ended March 31, 2022 show growth in the telecom operator’s new financial and digital services – up 8.5% – and indicate that meeting this need is on track. a positive trajectory.
“Since its launch in October last year, our awesome app has attracted 2.8 million downloads, demonstrating a huge appetite for participation in the digital economy. VodaLend’s product suite also works well; with the new Cash Advance offer, I am delighted to see even more people enjoying financial freedom, at all levels”, concludes Cassim.
The awesome VodaPay app is available for download from Apple and Android app stores. To access VodaLend Cash Advance on VodaPay, click on Services in the home menu and find VodaLend Cash Advance under Finance.
For more information visit https://vodapay.vodacom.co.za/vodapay/personal/home