Vodacom Financial Services has launched VodaLend Cash Advance as part of the VodaLend financial services suite, which includes VodaLend Compare, Voucher Advance, and Airtime Advance.
The new addition is geared towards underbanked consumers who need quick and barrier-free access to funds, and is available exclusively to Vodacom customers through the VodaPay super app.
“With only 26-million South African consumers having a formal credit record, there is still a significant part of the population that doesn’t have access to formal financial services,” says Mariam Cassim, CEO of Vodacom Financial Services. “VodaLend Cash Advance provides affordable access to lending products for those who need these services most, but who have historically been prevented from doing so due to high fees and difficult-to-navigate paperwork. It is also accessed in-app on a trusted digital platform, enabling a seamless, convenient, and secure process for customers.”
Vodacom customers can access a cash advance from as little as R50 and up to R500, with the option to settle it over seven, 14, 21 or 28 days.
In addition to the regulated requirements for affordability checks, the credit decision process is enhanced by also looking at a Vodacom customer’s recharge and payment behaviour. This ensures that the service can be accessed by more people, including first-time borrowers who can now enjoy the benefits of a secure, regulated lending solution.
Once approved, the money is advanced directly into the user’s VodaPay Wallet. It can be used instantly for in-app purchases, including buying prepaid electricity and water, paying bills, scan-to-pay in shops, and sending money to friends and family.