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Vodacom is working with China's Alipay to build 'super app' in South Africa
(Reuters) The Vodacom Group aims to set up a 'mega app' in collaboration with the digital payment company Alipay, part of China's Alibaba Group, to allow customers in South Africa to buy digitally, pay bills and transfer money to their families from next year onwards.
The platform would also allow small and medium-sized enterprises ( SMEs) to access financial resources such as loans and insurance, the two firms said in a joint statement on Monday.
Vodacom and other telecom operators in South Africa are aiming to extend their mobile payment services to electronic marketplaces to optimize their network and user base.
Banks are now aiming to reach more than 11 million South Africans who do not have bank accounts to offer loans and other financial services.
South Africa's biggest consumer network provider, MTN, aims to sell a related service, while Telkom has re-engineered the almost 70-year-old Yellow Pages telephone directory company to an internet auction app called Paddy.
"This collaboration is a important achievement in fostering greater financial inclusion across the markets in which we work, expanding our financial services ambitions across Africa," said Chief Executive Officer of Vodacom, Mrs. Schoel Joosub.
The mega app, just like WeChat, a network built by Tencent Holdings Ltd 0700.hk in China, will be operated by Vodacom Financial Services, Alipay becoming the service supplier, said the companies in their announcement.
Alipay is operated by Ant Financial, the banking company of Alibaba Group Holdings.
The collaboration would be a development boost for Vodacom Financial Services, which has evolved from a loss-making company to a corporation of more than 12 million subscribers in just four years , adding a total of 1 billion ($59.98 million) in earnings to the Vodacom Group, the telecom operator said.
The software will also allow customers to download music and track news.
