Capitec today announced that its prepaid mobile service Capitec Connect has issued 500 000 SIM cards to subscribers by the end of February 2023.
The banking group launched its mobile virtual network operator (MVNO) in September 2022.
Capitec Connect piggybacks on Cell C’s mobile network infrastructure.
Capitec GlobalOne transaction accounts can become Capitec Connect subscribers by connecting to the mobile virtual network by purchasing a SIM card from Capitec, which has been provisioned and activated on the mobile network.
The bank claims that its prepaid mobile service offers flat, low prepaid data rates and no top-up charges.
“Capitec Connect data is arguably the lowest-priced data offering in the market and does not expire,” Capitec said.
“With Capitec Connect, we introduced digital inclusivity and created the opportunity for everyone to connect using a prepaid solution that is easy to understand. To date, we have issued 500 000 SIM cards to subscribers.”
Meanwhile, Capitec also reported that headline earnings per share, South Africa’s key profit measure, for the year to the end of February 2023 increased by 15% to 8 420 cents per share. Retail bank and insurance profits rose 12% to R9,3 billion, while commercial bank profits grew 124% to R389 million.
“Our performance reflected resilience during tough times as the group delivered growth of 15% in headline earnings to R9,7 billion,” Capitec said.
“In the face of the current challenging environment, we continued to support our clients by giving back to them while building the future of financial services.
“We made significant investments in strategic projects to support our objective of unlocking value for our 20 million clients by improving their financial lives through various new initiatives.”
Also read: GUGU LOURIE: Shoprite cuts mobile data prices to boost online shopping
Shoprite, SA’s largest retailer, is looking to leverage affordable mobile data pricing.
Through its mobile virtual network operator (MVNO), known as K’nect, Shoprite is aiming to bring down mobile data prices in SA, allowing more people to access various platforms, including its own retail and banking offerings.
K’nect, which has nearly 200,000 voice and data customers, is offering cheaper data plans to customers.
Also read: GUGU LOURIE: Banks, retailers and the great piggyback race
The idea of every South African having access to the internet and digital services anywhere, anytime remains a lofty goal; for now the cost of data means only a relative few can afford the ease and convenience of transacting online.
While not without risks, companies, led by banks and retailers, are now increasingly realising the inherent potential of a captive online consumer base. And to tap into that revenue stream they are catching a ride into the world of telecom from mobile network operators (think Vodacom, MTN and Cell C).
