South African mobile operator Vodacom has launched VodaLend Cash Advance, which it says will offer its customers “quick and secure access to money when they need it most.”
This is the latest financial service added to VodaLend, which already has VodaLend Compare, Voucher Advance, and Airtime Advance.
Vodacom’s VodaLend Cash Advance
Vodacom said its VodaLend Cash Advance is aimed at “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 pay day.”
“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,” Vodacom Financial Services CEO Mariam Cassim said in a statement on Tuesday (30 August).
“VodaLend Cash Advance provides affordable 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. It is also accessed in-app on a trusted digital platform, enabling a seamless, convenient, and secure process for customers.”
How it works
The service is available exclusively to Vodacom’s customers. They can access cash advances starting from R50 to R500, which are payable over seven, 14, 21 or 28 days.
The mobile operator will apply the normal credit affordability checks. It will also look at a customer’s recharge and payment behaviour. Once an application is approved, the money will be paid into the customer’s VodaPay Wallet.
Customers can then use the funds for in-app purchases, including buying prepaid electricity and water, paying bills, scan-to-pay in shops, and sending money to friends and family.
“This innovative product is a potential gamechanger, as its fees are less than traditional short-term cash advance providers. On average, it’s up to 400 percent cheaper than using a mashonisa – it moves us beyond financial inclusion to real financial impact,” Cassim explained.
The new service adds to VodaLend Compare, which Vodacom launched in May this year to help its customers access unsecured personal loans from various financial institutions in South Africa.
In June 2021, the company also launched VodaLend Business Cash Advance, which offers short-term loans of between R3,000 and R350,000 to small, medium and micro enterprises (SMMEs).
The VodaPay super app has proved popular among customers, attracting over 2.8 million downloads so far. To access the new service on the app, users need to click on “Services” on the Home Menu. They will find VodaLend Cash Advance under “Finance.”