How did sales of Digital Goods and Services undergo such phenomenal growth, and where are they headed? We take a look at the history and upward trajectory of SA’s approximately R35 - 40 billion-a-month industry.
Our 2020 VAS Report clearly shows that digital goods and services were on the rise in South Africa. While the report primarily gives an overview of the ecosystem along with consumer purchasing trends, our latest research in the 2022 Digital Goods and Services Report shows the current state of the market with an in-depth view of the top six products.
We feel that it remains helpful to track the history of VAS for context and clues to its upward trajectory - with the market having grown by an estimated R7 billion a month in the past 2 years.
Over the last three decades, the VAS ecosystem and its various role players have changed significantly. Historically, VAS transactions in the retail, banking, and MNO sectors had a broad definition, and were facilitated on software built for payments.
The definition of VAS evolved to refer to the sale of digital products such as airtime and electricity - essential services in current times, and now easily purchased without leaving one’s front door. With the advancement of technology and networking, and as network capabilities expand, more digital goods and services platforms are becoming available, and customers are no longer restricted to only buying VAS products at a retailer’s POS device.
Let’s have a look at some of the moments in history that initiated exciting changes in the digital goods and services ecosystem.
It’s clear that the VAS landscape is quickly and constantly evolving, with major players keeping up with technological trends in order to offer their customers more. Any business that doesn’t keep their offering current and relevant risks getting left behind in this race to digital.
If you need help growing your VAS business, contact Electrum today. You can also download the full 2022 Digital Goods and Services Report here for more insights and recommendations.
