From airtime to gaming vouchers: SA’s expanding prepaid market

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SMEs have long been the lifeblood of South Africa’s economy, driving job creation and economic growth.

Fortunately, a strong and steady increase in mobile penetration in South Africa has led to another high-demand, easy-access option for small business owners: prepaid products. The appeal of selling prepaid lies in its accessibility and the opportunity for SMEs to diversify revenue streams.The market growth is clear: 42% of all digital goods and services sales are prepaid airtime and data. The prepaid market in South Africa has healthily expanded, with an anticipated annual growth rate of 8.

When it comes to customer acceptance and product demand, a study by iKhokha found that small businesses in South Africa that sell prepaid products see an average increase in foot traffic of 20%.85% of cell phone packages in South Africa are prepaid, but airtime and data only scratch the surface of prepaid vendors’ offering.

From electricity bills to traffic fines to gaming vouchers, prepaid platforms put various products and services in play for businesses to increase their basket size.. The fintech has been a trusted supplier of prepaid products for several years, but their service has recently undergone a radical update.

“We’re excited to contribute to the growing prepaid market in South Africa by introducing our new gaming offering. Our goal is to empower SMEs, drive growth, and enhance financial inclusivity, making iK Prepaid a catalyst for positive change” – Matt Putman, CEO of iKhokha.

 

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