Vodacom launches digital wallet with Bidvest Bank

Vodacom has partnered with Bidvest Bank to offer a new digital wallet for its VodaPay platform, the latest move by SA’s biggest mobile operator to revive its mobile payment efforts locally after the failure of M-Pesa between 2010 and 2016. 

Vodacom and rival MTN have been working to gain a strong presence in SA’s mobile payments market.

While dominating in Africa, both operators have had to change tack in SA to make inroads. MTN first launched its mobile money platform locally in 2012 before pulling the plug in 2016, saying it wasn’t commercially viable because three-quarters of the population has bank accounts. Vodacom shut its M-Pesa mobile money service in SA in the same year for similar reasons.

One reason often cited for this dynamic is the higher rate of banking penetration in SA compared with the rest of the continent where the rate is about one-third.

Vodacom has underpinned its latest venture in SA with insurance products, lending and a super-app, VodaPay, which has clocked up more than 5.7-million downloads, and has over 3.3-million registered users.

Thursday’s announcement sees the mobile operator using Bidvest’s banking platform to back its digital wallet — an online payment method enabling users to store payment information and virtual cash monetary value to make purchases without the need for physical cash or cards. The wallets can be used on mobile devices, computers and other connected devices.

“VodaPay is a huge step forward for us and our bid to provide financial inclusion through the many payment options that the mobile platform provides our customers,” said Mariam Cassim, CEO of Vodacom’s financial and digital lifestyle services. “The mobile wallet, powered by Bidvest Bank, is key to our digital and financial inclusion strategy.” 

VodaPay users will able to deposit money into the wallet through a network of stores across the country. Outlets include Vodacom stores as well as retailers such as Pick n Pay, Pick n Pay Express, Boxer, PEP, Ackermans, Makro, Rhino Cash & Carry, Game, Builders Warehouse and Cambridge Food.

Customers can also make deposits at spaza shops through Lesaka’s Kazang platform.

Vodacom says users can send money to anyone in the country via the app, and stipulate where the cash can be withdrawn, and the amount to send. The receiver can get the money at the selected cash-out point. 

The mobile operator has long offered such capability in its other markets through M-Pesa, but Thursday’s announcement takes Vodacom a step closer to building VodaPay into a super-app. 

The success of WeChat — Tencent’s super-app in China — has convinced companies across the banking and telecom sectors in SA that new growth areas, such as mobile payments and integration with multiple service providers, are the future for their business.

Vodacom’s super-app aims to be a one-stop shop for users, with services including connectivity, entertainment, shopping and finance. 

“It is like carrying a digital wallet around in a digital mall, allowing customers to deposit money for free, send money, shop at their favourite retailers, order food, and even pay bills and traffic fines at no extra charge, all from one simple super-app,” Vodacom said. 

Vodacom already has an online shop, loans for airtime, small business loans and insurance as part of VodaPay. 

Banks such as FNB have taken a stab at the e-commerce space with a marketplace that allows businesses to list products and services, with the benefit of the bank’s payment integration.

Nedbank launched its Avo platform in 2020, offering a variety of products and services. Most recently it introduced a vehicle marketplace akin to WeBuyCars, Cardura and Wheels24. 

gavazam@businesslive.co.za