Capitec Connect doubled its biggest rival’s customers in half the time

In four years, Capitec Connect has become the biggest player in South Africa’s MVNO market, surpassing established rivals such as FNB.

According to Africa Analysis’s 2026 South Africa MVNO Market Outlook Report, the country’s MVNO market reached a customer base of 4.4 million active SIMs in 2025.

Of this, Capitec Connect accounted for between 1.5 and 1.9 million customers, making it the largest player in the domestic MVNO space, with 43% market share.

The second largest player in South Africa’s MVNO market is often considered to be FNB Connect, which launched in June 2015 and had around 1 million customers a decade later.

Capitec Connect launched in September 2022 and built a subscriber base that is between 50% and 90% larger than FNB’s in less than half the time.

Capitec’s last set of full-year results showed that its mobile network had managed to generate a net income of R442 million over the course of the 2026 financial year.

According to VAS-X Chief Executive Officer Warren Alberts, there are three key drivers behind Capitec Connect’s rapid growth and success aside from its competitive pricing.

The first of these is the way Capitec used customer behaviour data to its advantage, which Capitec Connect executive head Dr Dalene Steyn explained in an ITWeb interview last September.

“We have about 12 million Capitec clients who buy airtime from Capitec every month,” Steyn said. “Capitec is actually the biggest seller of airtime in South Africa.”

“I think about 41% of all the airtime bought in South Africa is bought through Capitec. So, we know exactly who those clients are, and we know exactly what they’re buying.”

Using this data, Steyn said Capitec Connect would target these customers and their specific needs and preferences, which Capitec has insight into.

In May 2025, it was estimated that Capitec’s airtime sales volumes sat at an annual run rate of one billion recharges, conducted largely through the bank’s mobile app.

Capitec Connect’s strategy for growth

The second key driver of Capitec Connect’s growth, according to Alberts, was embedding its mobile business within its broader business ecosystem.

Capitec began offering its first full home loan products in November 2020, two years prior to the launch of Capitec Connect.

Alberts explained that while these two product offerings appear completely different from each other, they are complementary for banks like Capitec.

“In this case, it’s not so much about the SIM,” Alberts said. “It’s about better communication and the customer engagement it enables.”

“If a customer is experiencing financial difficulty and signs of financial strain are clear, it’s essential for the bank to be able to contact them.”

For Capitec customers using a Capitec Connect SIM card, their contact number is already verified on the bank’s system, making it easier to reach them before they fall in arrears.

Thirdly, Alberts pointed out that Capitec was able to leverage its existing customer base across its banking and other divisions to drive engagement for Capitec Connect.

“I’ve said it before, and I’ll say it again,” Alberts said. “If you have plans to launch a greenfields MVNO in the current market, you’re wasting your time and money.”

“Capitec didn’t have to convince millions of South Africans to trust a new brand. The business already had a large, engaged banking customer base, making customer acquisition significantly cheaper and faster.”

This proposition was made even more appealing by the bank’s rewards and incentives for customers who linked a Capitec Connect SIM to their main transactional account.

While these three factors in Capitec Connect’s growth may provide valuable lessons for others in the MVNO market, Alberts cautioned they should not be seen as a blueprint for success.

“What works for a bank with millions of digitally engaged customers won’t necessarily work for a retailer, insurer or challenger brand,” Alberts said.