Vodacom customers can now buy fast food on credit, here’s how

Vodacom, a leading telecommunications company in South Africa, has introduced a groundbreaking lending proposition called Vodacom Voucher Advance, aimed at revolutionizing the financial services industry in the country. The new product, Vodaland, is a first-of-its-kind initiative that allows customers to enjoy fast food on credit, with zero percent interest. This innovative approach is part of Vodacom's commitment to enhancing financial inclusion and digital empowerment within South African communities. Merriam Kasim, the Chief Officer at Vodacom Financial and Digital Services, shed light on the unique features of Vodaland during a recent interview. She explained that Vodaland is an extension of Vodacom's existing financial services arm, which focuses on providing tailored products to consumers and small to medium enterprises (SMEs) with the aim of fostering financial and digital inclusivity in the country. Vodaland is available to both Vodacom prepaid and top-up customers who meet the qualifying criteria. Customers must have been active on the Vodacom network for at least six months and have a history of purchasing airtime and data bundles from Vodacom. Postpaid customers can also benefit from Vodaland, with additional value offers on purchases. The product utilizes a sophisticated credit scoring AI tool, which correlates a customer's telco consumption behavior with their credit score for the first time. Kasim highlighted the significance of Vodaland in providing access to buy-now-pay-later solutions for customers, particularly those in the mass and bottom of the pyramid segments. Many individuals in these segments face challenges in accessing traditional financial services, especially for small amounts ranging from 5 to 200 rand. Vodacom's innovative algorithm has demonstrated the creditworthiness and loyalty of customers in these segments, reflected in the low default rate of just under 0.5% on their existing product, A-Tarm Advance. Vodaland offers advances starting from as little as 25 rand, providing convenience and flexibility to a wide range of consumers. The product has already partnered with popular brands like Nando's and Hershers, offering customers the option to enjoy meals on credit. Despite the success of Vodacom's A-Tarm Advance product, which currently advances over a billion rand monthly, Vodaland ensures responsible lending practices by limiting the initial qualifying amounts to prevent customers from overburdening themselves. The introduction of Vodaland signifies Vodacom's strategic move towards diversifying revenue streams beyond traditional voice and data services, in response to evolving market dynamics. Through partnerships like the one with Alipay and the upcoming launch of the VodaPay Super app, Vodacom is entering the realm of consumer lending and insurance, while also providing a platform for small businesses to reach its vast customer base of 44 million users in South Africa. In a statement, Kasim expressed the company's dedication to driving financial inclusion across all markets where Vodacom operates. She emphasized the upcoming launch of the VodaPay Super app on the Alipay platform, which will offer a comprehensive digital marketplace for various products and services, further solidifying Vodacom's position as a pioneer in the intersection of telecommunications and financial services. With Vodaland set to transform the way customers access credit for everyday expenses, Vodacom continues to pave the way for innovative solutions in the financial services sector.