Capitec is further encroaching into the telecommunications space by launching an airtime advance proposition to its 25-million strong client base as it boosts its value-added services play.
The lender looks to strengthen its already dominant position, through which it captures more than 40% of SA’s airtime and data transactions.
The company has capped its advance at R10 at the launch phase, attracting a R1 transaction fee and is likely to hike the maximum when the service gains traction with its vast customer base.
“Airtime advance went live on August 15 2025 to a small group of clients, with access expanded in phases through September. It’s designed to support South Africans when they need it most, offering essential airtime when money might be unavailable,” the bank told Business Day.
“The R10 limit is in place for now, but as we learn more from how clients use it, we’ll consider making changes to better meet their needs.”
Like its rivals, Capitec has been using its digital channels to push sales for products such as airtime, data and electricity, commonly referred to as value-added services (VAS). Mobile operators and power utility Eskom pay a commission to Capitec and others for driving such sales.
Capitec Connect is the bank’s mobile virtual network operator (MVNO) business. MVNOs are usually non-telecom businesses — including FNB, Standard Bank Mobile, Mr Price Mobile and Pick n Pay — that lease network infrastructure from mobile operators to sell data and voice services to their own customers. Capitec uses Cell C’s network for its service.
Capitec’s mobile unit started contributing positively to the bank’s earnings in the 2024 financial year
For a number of years, the largest MVNO player in SA has been FNB. However, information & communication technology research and consulting company Africa Analysis reports that Capitec Connect has emerged as SA’s largest MVNO, relegating FNB’s unit to second place.
Capitec Connect has expanded its unique value proposition beyond the original no-expiry bundle to include highly competitive 1-, 7- and 30-day validity options, which now account for more than 60% of sales.
Its foray into the lucrative airtime advance market is yet another new revenue stream for the lender.
Airtime advance has become a big contributor to revenue from SA financial services for mobile providers.
For Vodacom, in the 12 months to March 2025, airtime advance was one of the top three lines of business driving the company’s fintech growth in SA. Across its operations, the group said it facilitated 1.7-billion airtime advances. For the company the microloans translate to about half of the total prepaid recharges in SA.
SA’s largest mobile provider tends to advance small amounts of airtime to customers with little to no credit balance, repayable when customers recharge accounts. This tends to be R10 or R20 per advance for prepaid customers. The company does offer a product called Auto Advanced Airtime, the limit of which depends on how much a specific customer qualifies for based on their affordability profile and spending patterns.
Over the same period, Telkom reported that its airtime lending segment “remained a significant revenue driver” accounting for 31.1% of total prepaid recharges. About 11.8-million unique customers used this service. At the time, Telkom had 21-million customers, meaning 56% of the base used the service.
MTN is less forthcoming with details of its airtime lending business but it does note it as a growth driver in its largest market, Nigeria
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