Vodacom processed $548 billion in mobile money as fintech surges

Vodacom, a pan-African technology group, processed nearly $548 billion in mobile money transactions over the past year, signalling that the telecom giant’s future lies beyond phone calls and data bundles.

In a trading update for the quarter ended June 30, 2026, released on Monday, the company said its mobile money platforms, including Safaricom’s M-PESA, processed nearly $548 billion in transactions over the 12 months to June 30, 2026.

The milestone comes weeks after Vodacom completed its acquisition of an effective 20% stake in Safaricom, increasing its shareholding to 55% and giving it controlling ownership of East Africa’s largest telecom operator. While the South African-headquartered operator built its business on voice and data, its future growth strategy is now firmly centred on digital financial services across the continent.

Vodacom’s latest quarterly trading update reveals a company undergoing a profound transformation. The Safaricom transaction not only expands its geographic footprint but also accelerates its ambition to become a leading pan-African fintech player. 

According to the trading update, financial services now contribute more than 22% of Group service revenue, up from 13% before the transaction, while mobile money platforms processed nearly $548 billion over the past year. Those figures signal that fintech, not traditional telecoms, is becoming the company’s primary growth engine.

“This quarter marked a defining moment for Vodacom with the completion of our acquisition of a controlling stake in Safaricom,” said Shameel Joosub, Vodacom Group chief executive officer (CEO). “This strategically important transaction represents a major milestone in our Vision 2030 journey, significantly enhancing the Group’s scale, diversification and long-term growth prospects.”

The acquisition strengthens Vodacom’s position in Kenya through Safaricom while broadening its exposure to fast-growing digital finance markets across Ethiopia, Tanzania, the Democratic Republic of Congo, Mozambique and Lesotho, alongside its established operations in South Africa and Egypt.

The deal also gives Vodacom greater access to M-PESA, Africa’s largest mobile money platform, at a time when digital payments, remittances and financial inclusion are reshaping the continent’s financial services landscape.

Joosub said the stronger financial services business had prompted the company to raise its long-term ambitions. “Reflecting this stronger growth profile, we have upgraded our medium-term Earnings before interest, taxes, depreciation and amortisation (EBITDA) and operating free cash flow growth targets from double-digit to early-teens growth,” he said.

The company also increased its Vision 2030 revenue ambition from more than R200 billion ($12 billion) to more than R300 billion ($18 billion), reflecting confidence that fintech, digital services and higher-growth African markets will become increasingly important contributors to future earnings.

While South Africa remains Vodacom’s largest and most cash-generative market, the latest results illustrate why the operator is looking across Africa for growth.

Joosub said South African service revenue grew 2% during the quarter, supported by an improvement in prepaid performance. Egypt delivered one of the strongest performances across the group, with service revenue increasing 32.8% in local currency, while financial services revenue surged 73%. Vodacom’s International business, which includes Tanzania, the Democratic Republic of Congo, Lesotho and Mozambique, recorded 14% normalised service revenue growth.

Beyond mobile connectivity, digital services generated R7.8 billion ($467 million), representing almost 23% of Group service revenue. Financial services remain the largest component of that business. 

Vodacom is also expanding the role of financial technology across its markets. During the quarter, its Tanzanian operation launched what it described as Africa’s first mobile money tap-to-pay solution, allowing more than 22 million M-PESA customers to make contactless payments directly from their mobile wallets. In the Democratic Republic of Congo, the company used anonymised mobile data analytics to support Ebola preparedness and public health planning, demonstrating how its digital platforms are extending beyond financial services.

The Vodacom trading update noted that the acquisition of Safaricom represents more than a larger telecom footprint. It cements the company’s transition from a connectivity provider into a diversified technology business spanning mobile networks, digital platforms and financial services.

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