SA operator Telkom enters financial services space

04 September 2020

South African operator Telkom is launching a new mobile funeral insurance offer in collaboration with the insurer Guardrisk. 

This investment is in line with the strategic reorientation adopted by Telkom to diversify its revenues to cope with the rapid fall in the fixed-line segment, which now represents only 20% of its revenues against 56% in 2013.

“In recent years, Telkom has made a strategic shift to digital distribution, which puts it in an ideal position to distribute insurance products using its considerable digital structure and intellectual property,” said Sibusiso Ngwenya, managing director of Telkom Financial Services.

In addition to funeral insurance, Telkom also plans to launch a digital wallet service soon, allowing customers to purchase products and pay for services via its Yep! app and other online transaction platforms.

Telkom’s strategy comes amid the coronavirus context that has increased demand tenfold. In July 2019, Vodacom Group announced its ambition to create, in partnership with the digital payment provider Alipay, an app for online shopping, bill payment, and remittance.