Latest news with #CapitecConnect
News24
26-05-2025
- Business
- News24
Capitec cuts data prices as poll shows 87% feel limited by high costs
A recent Capitec poll involving thousands of South Africans revealed that 87% of respondents feel the high cost of data limits their access to crucial work, education, and other opportunities. This poll reinforces Capitec Connect's decision to reduce prices across its prepaid data bundles significantly. Capitec Connect is South Africa's fastest-growing mobile virtual network operator (MVNO), onboarding roughly 180,000 new active clients monthly. The latest price updates make it even more accessible for South Africans to stay connected, particularly as we face increased living expenses. Capitec Connect's updated prices on popular bundles are as follows: · 500MB (1-day): R10 · 1GB (7-day): R25 · 2GB (7-day): R35 · 5GB (7-day): R85 · 5GB (30-day): R100 · 10GB (30-day): R150 Dr Dalene Steyn, Head of Capitec Connect, notes that Statista projects South Africa's mobile internet users will grow from 13.82 million in 2024 to 25.83 million by 2029, underscoring the critical role data access plays in citizens' daily lives. 'Understanding the economic climate is crucial, and we know many South Africans are carefully managing their expenses. That's why we're proactively lowering costs to provide tangible savings for our clients. Affordable data is vital for work, education, and staying connected to loved ones. This price reduction is part of our ongoing commitment to providing simple and affordable solutions that empower our clients.' Why affordable data matters now more than ever The decision to lower data prices comes at a crucial time. Capitec's poll underscores the financial pressures associated with data costs. Confirming data as a lifeline beyond entertainment, most respondents reported using the most data during the afternoon (43%), often for work, study, or online shopping. Evening usage (binge-watching and scrolling) followed at 32%. When asked what consumes most of their data, 62% pointed to social media, with 27% citing streaming music and videos. 'These insights reveal that data has become an essential enabler of careers, education, and staying informed. By making data significantly more affordable, we're not just cutting prices, we're investing in our clients' ability to participate fully in the digital world. We understand that these savings can make a meaningful difference in our clients' lives,' adds Steyn. Lower data prices to keep clients connected 'We listen to our clients and are constantly looking for ways to offer them more value. By lowering our data prices, especially on the larger, longer-validity bundles, we hope to alleviate some financial pressure and ensure more South Africans can stay connected using some of South Africa's best-priced prepaid bundles,' concludes Steyn.
The Star
13-05-2025
- Business
- The Star
SA data, airtime too expensive
Concerns over the high costs of data and telephone calls have been raised by various political voices over time. The persistent issue of expensive data and telephone call costs in South Africa requires urgent and meaningful intervention. It has been six years since Minister Stella Ndabeni-Abrahams, Minister of Communications and Digital Technologies, committed to tackling the "exorbitant" pricing within the communications sector. Regrettably, this commitment has not yet translated into noticeable improvements for consumers. A comparison with other African nations clearly illustrates the price discrepancy. In Ghana, for example, 1 GB of data can be obtained for as little as R1.49, with the highest price point around R23 for the same amount. South African consumers, on the other hand, face considerably steeper charges. To illustrate, Cell C offers 1 GB valid for a single day at R25. Capitec Connect charges R25 for 1 GB valid for a week, and R45 for data without expiry. Even these rates appear more competitive when compared to Vodacom and MTN, both of which charge R89 for 1.2 GB. Further highlighting the disparity, data costs in Nigeria and Brazil are significantly lower, with 1 GB priced at about US$0.39 (R7.12) and US$0.40 (R7.31), respectively. Concerns over these high costs have been raised by various political voices over time. The Inkatha Freedom Party initially called for action, and more recently, the Economic Freedom Fighters (EFF) have advocated for the immediate removal of expiry dates for prepaid mobile data and airtime. This underscores the double challenge faced by consumers: high prices coupled with the risk of losing unused data and airtime due to expiration. Promotional offers, such as limited-time WhatsApp data, often force users into intensive, short-term usage to avoid losing their allocation. Until significant reductions in data and call costs are achieved, many South Africans, particularly the youth in both rural and urban areas who are disproportionately affected by these high expenses, will likely continue to feel that the financial burden they face is not being adequately addressed by the relevant authorities.
IOL News
12-05-2025
- Business
- IOL News
SA data, airtime too expensive
Concerns over the high costs of data and telephone calls have been raised by various political voices over time. The persistent issue of expensive data and telephone call costs in South Africa requires urgent and meaningful intervention. It has been six years since Minister Stella Ndabeni-Abrahams, Minister of Communications and Digital Technologies, committed to tackling the "exorbitant" pricing within the communications sector. Regrettably, this commitment has not yet translated into noticeable improvements for consumers. A comparison with other African nations clearly illustrates the price discrepancy. In Ghana, for example, 1 GB of data can be obtained for as little as R1.49, with the highest price point around R23 for the same amount. South African consumers, on the other hand, face considerably steeper charges. To illustrate, Cell C offers 1 GB valid for a single day at R25. Capitec Connect charges R25 for 1 GB valid for a week, and R45 for data without expiry. Even these rates appear more competitive when compared to Vodacom and MTN, both of which charge R89 for 1.2 GB. Further highlighting the disparity, data costs in Nigeria and Brazil are significantly lower, with 1 GB priced at about US$0.39 (R7.12) and US$0.40 (R7.31), respectively. Concerns over these high costs have been raised by various political voices over time. The Inkatha Freedom Party initially called for action, and more recently, the Economic Freedom Fighters (EFF) have advocated for the immediate removal of expiry dates for prepaid mobile data and airtime. This underscores the double challenge faced by consumers: high prices coupled with the risk of losing unused data and airtime due to expiration. Promotional offers, such as limited-time WhatsApp data, often force users into intensive, short-term usage to avoid losing their allocation. Until significant reductions in data and call costs are achieved, many South Africans, particularly the youth in both rural and urban areas who are disproportionately affected by these high expenses, will likely continue to feel that the financial burden they face is not being adequately addressed by the relevant authorities.
IOL News
25-04-2025
- Business
- IOL News
Simple and affordable: Capitec disrupts bank fees
Capitec is making banking even simpler and more affordable in 2025 with a groundbreaking new fee structure. Capitec, South Africa's leading digital bank, has launched a new, simplified fee structure for 2025. The revised fees make banking more affordable and accessible for clients. By reducing costs for key services, Capitec continues its commitment to financial inclusion. "By consolidating our fees into clear, simple tiers and reducing costs for essential services like debit orders and immediate payments, we're making it easier for South Africans to understand and manage their banking fees," says Francois Viviers, Group Executive: Marketing and Communications at Capitec. Back to basics: Keeping it simple More than 30 pricing points have been streamlined into five key fees: R1, R2, R3, R6 and R10. R1: Payments between Capitec accounts, including Capitec Pay Payments between Capitec accounts, including Capitec Pay R2: Payments to other banks using EFT or PayShap Payments to other banks using EFT or PayShap R3: Debit orders Debit orders R6: Immediate payments to any bank in SA Immediate payments to any bank in SA R10: Cash withdrawals per R1 000 at Capitec or other banks' ATMs Another industry first: Same fees for personal and business banking Business banking clients will benefit from the same affordable transaction rates as personal banking clients, reinforcing the bank's commitment to fostering growth for entrepreneurs and small businesses. A notable difference is the monthly fee: personal banking remains R7.50, while business banking has a monthly fee of R50 and requires a minimum balance of R150. Business account holders also receive personalised support and access to a dedicated relationship suite with 24/7 availability. Viviers adds, "Traditional banking is complex and expensive, often at the expense of most South Africans. We believe pricing should be affordable, simple, and transparent so that our clients know exactly what they pay and what they get. This philosophy extends across our entire product range – from everyday banking to insurance and Capitec Connect. By maintaining competitive premiums on our insurance products and offering affordable mobile data rates, we ensure that comprehensive financial services remain within reach for all South Africans." Reducing costs with smart tech Capitec's groundbreaking pricing structure is also the result of continued investment in innovation. By leveraging cloud computing solutions, particularly through Amazon Web Services (AWS), the bank has improved efficiency, strengthened system resilience and accelerated service delivery. These advancements have enabled Capitec to cut costs and pass the savings onto its clients. Supporting economic growth through financial inclusion Capitec's initiative aligns with SARB's Vision 2025, which aims to enhance financial inclusion by making digital payments more accessible, secure and efficient. By reducing costs and simplifying banking, Capitec is actively contributing to broader economic empowerment. "When more South Africans and businesses have access to affordable banking services, it creates a ripple effect throughout the economy. Our simplified fee structure is more than just pricing – it's about removing barriers to financial services and fostering economic growth for all South Africans," concludes Viviers. For more details on Capitec's 2025 banking fees and services, visit
Zawya
24-04-2025
- Business
- Zawya
South Africa: Diversification of services sees Capitec grow headline earnings by 30%
Despite a challenging economic climate, digital bank Capitec, for the financial year ending 28 February 2025, reported a 30% increase in headline earnings to R13.7bn. Capitec has, for the financial year ending 28 February 2025, reported a 30% increase in headline earnings to R13.7bn. Gerrie Fourie, chief executive officer of Capitec attributes this to the bank's solid foundations for long-term growth, powered by its scalable technology and diversified business model Personal banking now constitutes 45% of total earnings, insurance accounts for 25%, strategic initiatives (VAS and Capitec Connect) contribute 23%, business banking makes up 5%, and AvaFin (consolidated from 1 May 2024) adds 2%. It attributes this to its diversification of services over the past five years which include the introduction of business banking, value-added services (VAS), Capitec Connect, and insurance under its own insurance licence as well as its integrated digital ecosystem. As a result, the bank's active client base now exceeds 24 million. Capitec's strategic focus on value-added services (VAS) and the Capitec Connect mobile virtual network operator (MVNO) has delivered exceptional results, providing significant client value and convenience. Their combined net income surged by 61% to R4.4bn. Growth in airtime and data Over 11 million clients now utilise the Capitec app to purchase airtime, data, electricity, vouchers, and to pay bills. The bank captures over 40% of South Africa's airtime and data transactions, and one in five digital vehicle licence renewals now occur on its platform, saving clients both time and money. 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 over 60% of sales. Active SIM subscribers have grown by 74% to 1.6 million, demonstrating the appeal of its simplified, affordable data offering integrated within the banking ecosystem. Data usage has surpassed 13.4 petabytes, contributing R193m in net income. Digital payments continue to accelerate The shift to digital payments continues to accelerate. Card payments at tills and online have risen by 18% to more than 2.4 billion transactions, while cash transaction volumes have increased by only 3%. E-commerce transactions, including those via Capitec Pay, surged by 47% to 488 million. More than 1 million clients are now actively using their Capitec cards through digital wallets such as Apple Pay, Google Pay, and Samsung Pay. Capitec has also launched a new International Payments solution on the app, enabling fast and affordable payments to over 50 countries in 13 currencies, for a fixed fee of R175, with funds reflecting within hours. Meanwhile, new purpose credit solutions are helping clients fund vehicles, education, and home improvements through more than 27,000 partner locations. Credit sales to clients earning over R50,000 a month grew 56%, as the bank introduced personalised in-app offers, secured home loans, youth credit cards, and repay-as-you-earn loans for side hustlers and freelancers. Insurance records rapid growth Operating under its licence, Capitec Life now manages over 3.3 million active funeral and life cover policies, insuring 15 million lives and contributing R1.9bn in net insurance income to the group. Since May 2024, the bank has added in excess of 600,000 active funeral and life cover policies on its own licence. New business Active business clients increased to 218,207 (up 15%), forex transactions grew by 92%, and scored loan balances rose by 111% to R1.3bn. Capitec's merchant commerce strategy involved selling new smart card machines outright rather than renting them, and providing the most competitive commission rates, which has helped grow the number of active trading merchants by 124% to 63,000, with a total annual turnover of R64bn. This simplified approach, along with newly reduced and transparent pricing, has saved businesses R289m in banking fees over the past year alone. A focus on education Capitec's broader impact also includes significant contributions to financial education and social upliftment. Through the Capitec Foundation, more than 21,000 learners, educators, and school leaders benefited from improved maths education programmes. Additionally, 4,000 employee volunteers partnered with nonprofits to deliver 345 initiatives that reached over 27,000 learners. Capitec's MoneyUp Academy and WhatsApp learning bot have delivered 1.6 million lessons, further driving financial literacy across the country. Solid foundations for long-term growth Gerrie Fourie, chief executive officer of Capitec says, 'We have laid solid foundations for long-term growth, powered by our scalable technology and diversified business model. 'We will continue to invest in technology and data to deepen our client knowledge and refine our offerings, ensuring each part of our ecosystem delivers distinct value. 'Key future initiatives involve the continued development of our integrated ecosystem, enhancing our payment capabilities, and growing our business banking and insurance businesses. 'We remain passionate about making a meaningful difference and helping our clients and the South African economy grow.' Fourie asserts that the results represent more than mere numbers - they signify progress in transforming lives. 'We have always believed that banking should be simple, affordable, accessible, and personal. These results demonstrate that we are achieving just that. 'Through our high-volume, low-margin business model, we are enabling everyone to access solutions that allow them to take control of their finances, protect their families, manage businesses, and unlock opportunities. 'Our purpose-driven strategy is helping us scale sustainably and, most importantly, it is assisting 24 million South Africans to grow every day.'
