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Vodacom Group announced on Monday that it processes an average of US$1.2 billion in mobile money transactions daily, highlighting the increasing significance of financial services in its revenue stream.
In its trading update for the quarter ending 31 December 2024, Vodacom reported that its financial services division contributed approximately US$189 million to the group’s total quarterly revenue of US$2.08 billion.
“Our financial services business, a clear strategic priority for the group and the largest contributor beyond mobile, has seen the value of mobile money transactions facilitated by our platforms increase by 19.1% in US dollars,” said Vodacom Group CEO Shameel Joosub.
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The group’s financial services revenue grew by 5.7% year over year, or 17.2% on a normalised basis (excluding currency fluctuations and other factors for a “like-for-like comparison”). This outpaced the 11.6% growth rate of Vodacom’s core communications service revenue, which stood at approximately US$1.61 billion for the quarter.
Among the company’s best-performing fintech markets were South Africa and Egypt, with South Africa contributing about US$47 million—up 9.9% year over year—and Egypt generating US$30.8 million, reflecting a 6.2% increase. Meanwhile, Vodacom’s international fintech business, primarily driven by M-Pesa growth in Tanzania and Lesotho, grew by 10.2% on a normalised basis to US$116 million.
A key strategic focus for Vodacom’s financial services division is expanding the adoption of “advanced financial services” such as loans, savings, international remittances, and insurance. These services accounted for 44% of M-Pesa’s revenue during the quarter.
Vodacom’s financial services growth is also being driven by its “super apps,” including VodaPay, Vodafone Cash, and M-Pesa, which integrate Vodacom’s offerings with those of external partners across its operating markets. A vital component supporting core financial services such as cash-in and cash-out is Vodacom’s agent network, which expanded by 35% to 454,000 agents during the reporting period.
Vodacom’s expansion into fintech aligns with its broader diversification strategy aimed at countering the impact of declining margins in its core connectivity business. To sustain revenue growth, mobile operators are increasingly investing in fintech, media, gaming, and the Internet of Things.
Rival MTN Group has adopted a similar approach, with its fintech division also experiencing strong growth. In its half-year financial results for the period ending June 2024, MTN reported a 27.7% year-over-year increase in fintech revenue, with advanced services revenue growing by 58.2%. Mobile Money (MoMo) active users rose by 9.1% to 66 million, driven by expansion in Ghana, Uganda, and Rwanda.
For the quarter, Vodacom Group reported total revenue of approximately US$2.08 billion, marking a 1.6% increase year over year (or 12.6% when adjusted for normalisation). Revenue in South Africa alone grew by 4.7%.
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