Vodacom isn’t just a mobile service provider anymore. The rise of the super-app has spawned services like VodaLend, a financial service that offers South Africans unsecured loans (among other functions). Now there’s something more: VodaLend Cash Advance.
It’s a little like Vodacom’s Airtime Advance feature, which lets you take a little extra airtime with the promise to pay it back later. Only, the stakes are a little higher here. But just a little. Cash advances are for between R50 and R500 a pop, so it won’t fund a wild weekend that unfortunately doesn’t kill you before you have to pay the money back.
VodaLend me fifty bucks till Friday?
Instead, Cash Advance is “geared towards underbanked consumers who need quick and barrier-free access to funds”. It’s supposed to provide emergency cash for people in a tight spot and it’s relatively open. Relatively. It’s only available “exclusively to Vodacom customers through the VodaPay super app”. So there is at least one barrier to snagging a little extra money to get enough bread until payday. Vodacom, obviously, doesn’t see it as a minor one.
As mentioned, users can borrow between R50 and R500 at a time. Repayment terms of the VodaLend Cash Advance may be selected, with 7-day, 14-day, 21-day, and 28-day terms available. One to four weeks should get you to your next payday, but there are still some financial hurdles to clear. An affordability assessment is done, via the VodaPay app. As part of this, Vodacom will check out an applicant’s recharge and payment behaviour. Since they have that data anyway, it makes sense.
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On approval, the sum requested is deposited into a user’s VodaPay Wallet. This can be used on the app (for digital purchases like airtime, electricity, and so on) or sent to family members who need it.
What this will cost users in terms of interest isn’t explained, but Mariam Cassim, CEO of Vodacom Financial Services, says that it’s “… it’s up to 400 percent cheaper than using a mashonisa.”
“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,” said Cassim.
It’s relatively easy to access VodaLend Cash Advance via the VodaPay app. Users can select the Services option, and then Finance. Cash Advance lives under that option.
