October 13, 2021Africa
Vodacom Leads All FinTech Players in Africa
Vodacom Group, a subsidiary of U.K.-based Vodafone Group, is Africa’s largest financial technology (Fintech) operator. Vodacom’s markets cover over 400 million people with South Africa as its largest contributor, representing 74 percent of its FY21 operating profit.
Vodacom launched its popular M-pesa mobile financial service in 2007, and now is Africa’s leading fintech player, by revenues and transaction values. In the past year, M-pesa facilitated 15 million first time borrowers and lowered barriers to inclusion through nano products that average $4 per ticket. Vodacom says it facilitates millions of transactions a day with loan denominations of “less than a few dollars at a time.
The company’s Q1FY22 results showed M-pesa transaction volumes reached $25 billion per month, up 64 percent year-over-year and annualized at $300 billion. By comparison, U.S.-based payments company Square handles $170 billion in annual transaction volume. Still, from 57.7 million customers in March 2021, Vodacom is targeting 72.6 million financial service customers by 2024.
