Capitec's MVNO division, together with value-added services, contributed 26% to group earnings in the six months that ended in August. (Photo: Capitec) 
Capitec Connect, the bank’s mobile virtual network operator (MVNO), experienced a 76% jump in clients for the six months to the end of August.
The MVNO division, together with value-added services (VAS) — think electricity purchases and licence disc renewals — contributed 26% to group earnings and experienced rapid growth across all product lines, with 1.1 million active Capitec Connect SIMs and 12 million clients purchasing VAS via the Capitec app last month.
Non-interest income, including VAS, Capitec Connect and insurance, grew by 19% to R13.4 billion.
Transaction value and volumes for value-added services
(Source: Capitec interim results 2025)
The big contribution from Capitec Connect makes total sense when you consider that the bank’s clients aged between 16 and 35 grew to 12 million, giving Capitec a commanding 58% market share among the youth segment.
(Source: Capitec interim results 2025)
Capitec Connect also introduced new devices, allowing clients to order any of 22 smartphones from their app to be delivered within three days, and receive 30GB of free data over the first six months. The range is limited to the two biggest mobile brands in South Africa, including 18 Samsung models and four Apple phones. This is a key part of Capitec’s strategy to entrench itself as an enabler that is relevant in people’s daily lives.
The move into the MVNO space in a big way is in line with global trends. According to a report by Grand View Research, the global MVNO market size was estimated at $88.06-billion in 2024 and is projected to grow at a compound annual growth rate of 7.7% from 2025 to 2030. This growth is driven by factors such as the increasing demand for personalised mobile services, the proliferation of Internet of Things devices, and the expansion of 5G networks.
Read more: Melon brings healthy competition to the mobile virtual network operator market
Besides the obvious point of bringing in more money, the MVNO market offers revenue diversification and carries lower customer acquisition costs.
Commenting on overall bank performance in PwC’s 2025 Major Banks Analysis report, Rivaan Roopnarain, PwC South Africa banking and capital markets partner, said: “We continue to observe banking applications increasingly being designed around making customers’ lives easier by expanding the range of value-added services available on banking apps, payments optimisation, and broader and faster product delivery.”
At the end of August, Nedbank launched an MVNO offering, with data plans starting from R169 a month for 3GB, moving progressively up to R479 a month for 20GB.
FNB Connect brought in a whopping R22-billion in turnover for the 2025 financial year, according to MyBroadband.
Standard Bank announced an MVNO partnership with MTN last June. The bank launched its MVNO offering in 2018 and had more than 300,000 mobile customers by the time of the MTN collaboration announcement. DM
(Source: The Outlier)