Capitec value-added services boom in South Africa – with Capitec Connect a massive hit

Capitec’s value-added services business has achieved strong growth in 2024, contributing to an impressive headline earnings growth of 36% for the bank.

These were two of the key highlights of Capitec’s financial results report for the six months ending 31 August 2024.

• Click here to learn more about Capitec’s value-added services.

Net income for the value-added services division grew by 73% to R2 billion, while the number of Capitec clients using these services grew by 16% to 10.7 million people.

“Our focus on expanding our value-added services offerings and transforming cash transactions to frictionless digital banking is paying off,” said Capitec CEO Gerrie Fourie.

Value-added services

Capitec’s value-added services business comprises a wide range of solutions which offer Capitec clients increased value from their relationship with the bank.

The list of services includes, but is not limited to:

• Sending cash.
• Paying bills.
• Buying prepaid electricity.
• Buying prepaid airtime.
• Renewing vehicle licences.
• Buying retail or Showmax vouchers.

These features are all available in the Capitec App – making them accessible to all 12.4 million clients who use the bank’s smartphone app.

Thanks to the ease of accessibility, as well as the great value these solutions offer, Capitec has seen massive uptake of its services.

A standout example in Capitec’s results was that during the six-month period ending 31 August 2024, the bank sold an incredible 132 million vouchers to its clients.

At the same time, Capitec saw an increased average transaction value – meaning clients get more value from each voucher they buy.

Capitec Connect

Another critical part of the Capitec value-added services business is the hugely popular Capitec Connect MVNO.

Capitec Connect gives clients easy access to affordable prepaid data, airtime, call minutes, and SMSs.

At the end of August 2024, Capitec Connect had grown its number of active SIM cards to 1.2 million.

Furthermore, data usage had increased to over 5 petabytes (over 5 million gigabytes).

This resulted in Capitec Connect delivering a net income contribution of R69 million to the bank—up exponentially from R4 million a year ago – with a 40% market share on prepaid data and airtime.

“Our Capitec Connect bundles connect families and empower entrepreneurs with affordable data and voice packages,” said Fourie.

“We’re seeing strong adoption of our new payment channels, Capitec Connect, and value-added services, which are improving the client experience and providing us with valuable data to enhance our offerings even further.”

Click here to learn more about Capitec’s value-added services.