Vodacom does not think there is anything wrong with offering a new credit card service for customers at this stage, even though Reserve Bank governor Tito Mboweni has expressed concern that South Africans are overburdened by debt.
The Vodacom credit card, which will be launched in November, will be issued under FirstRand Bank`s licence and backed by Visa, and will be offered to the mobile operator`s postpaid and contract customers.
Shameel Joosub, Vodacom SA MD, says safeguards have been put in place to ensure only those customers who qualify for credit will be allowed to access it.
First National Bank will do additional credit checks when postpaid customers, who were initially checked for creditworthiness at the time the mobile phone contract was signed, apply for the Vodacom credit card, he says.
"People generally carry multiple credit cards and they use each one of them where they get the best deal," he says.
Leveraging customer base
Joosub says Vodacom is diversifying into other markets in order to retain customers. Clients have indicated they want financial services, he says.
He notes that interest rates charged through the Vodacom credit card will be comparable with that charged by banks and retailers.
As part of a loyalty programme, the benefits will lie in the discounts and special offers that customers will be able to access through accounts held with retailers, he says.
Moving into ICT
Joosub says Vodacom is moving more into the ICT space, rather than focusing on pure cellular services. This move includes the mobile TV space, where the mobile operator offers 17 TV channels to its customers, providing broadband and content services.
The diversification does not, however, indicate a viewpoint that the South African cellular market is saturated, he adds.
"At 34 million subscribers and 72% penetration, the South African cellular market still has room for growth."
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