Retailer Pepkor, previously Steinhoff Africa Retail, said its FinTech segment reported revenue growth of 5.8% for the three months to end-December.
The company announced that its FLASH business reported 15.7% growth in revenue boosted by an increased basket of virtual products offered to consumers.
The company operates its FinTech division through FLASH and Capfin.
The group added that its FLASH business continues to invest in new products, channels and geographies to widen its ecosystem as the growing trader base continues to be an attractive avenue for partners.
However, Pepkor said Capfin’s performance was impacted as a result of curtailed credit granting and lower interest rates.
The Capfin unsecured credit book was maintained at R1.9 billion (gross) since September 2020 and collections have been in line with pre-COVID-19 levels, the company said.
Capfin was founded in 2010 with a vision to provide customers with affordable loan products and services. It has partnered with PEP and Ackermans to provide convenient and reliable services to customers.
Furthermore, Pepkor said JD Group increased retail sales by 9.3% while like-for-like sales increased by 10.8%.
“This was achieved notwithstanding trading space reducing by 11.0% year-on-year and prudent credit-granting which resulted in the overall JD Group credit sales mix reducing to 10.3% compared to the comparable quarter last year of 17.5%.”
Pepkor added that the Connect credit book, which facilitates credit sales in the JD Group, was maintained at R1.6 billion (gross) since 30 September 2020. Although collections met targeted levels, reduced credit extension and lower interest rates weighed on revenue growth.