Vodacom Group said on Monday that it’s processing US$1.2-billion (R23-billion) on average every day in mobile money transactions.
That figure, revealed in a trading update for the quarter ended 31 December 2024, shows how financial services have become an increasingly important component of the group’s revenue mix.
Indeed, Vodacom reported that its financial services arm contributed R3.6-billion of the R39.5-billion total group revenue for the quarter.
“Our financial services business, a clear strategic priority for the group and the largest contributor beyond mobile, has seen the value of mobile money transactions facilitated by our platforms increase 19.1% in US dollars,” said Vodacom Group CEO Shameel Joosub.
Group financial services revenue grew by 5.7% year on year, or 17.2% on a normalised basis (excluding currency movements and other factors for a “like-for-like comparison”). This surpassed the 11.6% growth rate in group service revenue from its core communications business. Group service revenue was R30.6-billion.
South Africa and Egypt were among the group’s best-performing fintech markets, with South Africa contributing R889-million – up 9.9% year on year – and Egypt contributing R581-million (up 6.2%). The international fintech business grew revenue by 10.2% year on year on a normalised basis to R2.2-billion, largely driven by M-Pesa growth in Tanzania and Lesotho.
Advanced services
One of Vodacom’s key strategic imperatives for its financial services business it to drive further uptake of “advanced financial services” such as loans, savings, international remittances and insurance. These advanced services made up 44% of M-Pesa revenue in the quarter.
Also key to driving the group’s financial services strategy are its “super apps” VodaPay, Vodaphone Cash and M-Pesa, which integrate Vodacom’s own products with offerings from partners across its operating markets. Core financial services products such as cash-in and cash-out are supported by an agent network that grew by 35% to 454 000 in the period.
Read: MTN’s fintech business is flying
The move by Vodacom into fintech is part of a diversification strategy aimed at cushioning the impact of the commoditisation of network services. To keep revenue healthy, operators have diversified into fintech, media, gaming and the internet of things to offset lower margins in their core connectivity business.
Rival MTN Group has followed a similar strategy, and the results from its fintech arm are also showing positive outcomes.
In its half-year results to end-June 2024, MTN reported a 27.7% year on year increase in fintech revenue, with advanced services revenue growing by 58.2%. Mobile Money (MoMo) active users increased by 9.1% to 66 million, largely driven by growth in Ghana, Uganda and Rwanda. It is clear that fintech is becoming a an increasingly important source of revenue for both of Africa’s largest mobile operators.
For the quarter, Vodacom Group reported revenue of R39.5-billion, an improvement of 1.6% year on year (12.6% normalised). South Africa revenue was 4.7% higher. – © 2025 NewsCentral Media
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