---
title: The Rise and Rise of Value-Added Services in South Africa
description: A look at the history and upward trajectory of SA’s VAS industry.
image: https://blog.electrum.co.za/hubfs/Imported_Blog_Media/6257bc542af0a54fe944e2bd_vas-timeline-thumbnail-Nov-21-2023-06-47-56-0447-AM.jpeg
---

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- Schemes 
    - Clearing House Payments 
          - [Payshap](https://www.electrum.co.za/schemes/payshap)
          - [Real-Time Clearing](https://www.electrum.co.za/schemes/real-time-clearing)
          - [EFT Debit & Credit](https://www.electrum.co.za/schemes/electronic-funds-transfer)
          - [Account Verification Services](https://www.electrum.co.za/schemes/account-verification-services)
    - Alternative Payment Methods 
          - [Cash Vouchers](https://www.electrum.co.za/payments/cash-vouchers)
    - Value-Added Services 
          - [Prepaid Airtime and Data](https://www.electrum.co.za/digital-goods-and-services/prepaid-airtime-and-data)
          - [Prepaid Electricity](https://www.electrum.co.za/digital-goods-and-services/prepaid-electricity)
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          - [Digital Vouchers](https://www.electrum.co.za/digital-goods-and-services/digital-vouchers)
- Solutions 
    - [Clearing House Payments Modernisation](https://www.electrum.co.za/solutions/clearing-house-payments-modernisation-for-existing-banks)
    - [Turnkey Clearing House Payments](https://www.electrum.co.za/solutions/turnkey-clearing-house-payments-for-new-banks)
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# The Rise and Rise of Value-Added Services in South Africa

 October 10, 2022

<https://blog.electrum.co.za/author/electrum-software> ![Electrum Software](https://blog.electrum.co.za/hubfs/favicon.png)

 Electrum Software

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![The Rise and Rise of Value-Added Services in South Africa](https://blog.electrum.co.za/hubfs/Imported_Blog_Media/6257bc542af0a54fe944e2bd_vas-timeline-thumbnail-Nov-21-2023-06-47-56-0447-AM.jpeg)

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](https://electrum.co.za/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](https://www.electrum.co.za/reports/2022-digital-goods-and-services-report) shows the current state of the market with an in-depth view of the [top six products](https://www.electrum.co.za/post/6-products-you-need-to-win-at-vas).

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.

![A timeline of notable events in the rise of value-added services in South Africa, starting in 1980 and ending in 2022](https://blog.electrum.co.za/hubfs/Imported_Blog_Media/633ac0b80a9495925d51fbef_Electrum-VAS-timeline-5-2.png)

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](https://electrum.co.za/contact/) today. You can also [download the full 2022 Digital Goods and Services Report](https://www.electrum.co.za/reports/2022-digital-goods-and-services-report) here for more insights and recommendations.

![Electrum Software](https://blog.electrum.co.za/hubfs/favicon.png)

Electrum Software

Electrum is the next-generation payments software company, powering payments for banks and retailers. Since 2012, we have established ourselves as a respected software partner through our deep expertise and track record in delivering trusted cloud-native payments solutions.

[More posts by  Electrum Software](https://blog.electrum.co.za/author/electrum-software)

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### The Rise of Sports Betting in South Africa

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# Electrum Newsletter

 Quarterly insights and news to help you keep up with the latest changes in the payments landscape

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###### Clearing House Payments

- [PayShap](https://www.electrum.co.za/schemes/payshap)
- [Real-Time Clearing](https://www.electrum.co.za/schemes/real-time-clearing)
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###### Value-Added Services

- [Prepaid Airtime and Data](https://www.electrum.co.za/digital-goods-and-services/prepaid-airtime-and-data)
- [Prepaid Electricity](https://www.electrum.co.za/digital-goods-and-services/prepaid-electricity)
- [Bill Payments](https://www.electrum.co.za/digital-goods-and-services/bill-payments)
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- [Travel and Event Ticketing](https://www.electrum.co.za/digital-goods-and-services/travel-and-event-ticketing)
- [Digital Vouchers](https://www.electrum.co.za/digital-goods-and-services/digital-vouchers)
- [Cash Vouchers](https://www.electrum.co.za/payments/cash-vouchers)

###### Solutions

- [Clearing House Payments Modernisation](https://www.electrum.co.za/solutions/clearing-house-payments-modernisation-for-existing-banks)
- [Turnkey Clearing House Payments](https://www.electrum.co.za/solutions/turnkey-clearing-house-payments-for-new-banks)
- [Enterprise Payments Channel](https://www.electrum.co.za/solutions/enterprise-payments-channel)
- [PayShap-Ready QR Code Issuing](https://www.electrum.co.za/solutions/payshap-ready-qr-code-issuing)
- [PayShap for Retailers](https://www.electrum.co.za/solutions/payshap-for-retailers)
- [Cash Voucher Issuing and Distribution for Banks](https://www.electrum.co.za/solutions/cash-voucher-issuing-and-distribution-for-banks)
- [Cash Voucher Retail Expansion for Banks](https://www.electrum.co.za/solutions/cash-voucher-retail-expansion-for-banks)
- [Retail Cash-In and Cash-Out Expansion](https://www.electrum.co.za/solutions/retail-cash-in-and-cash-out-expansion)
- [High Volume POS-Integrated VAS Services](https://www.electrum.co.za/solutions/high-volume-pos-integrated-vas-services)
- [Expanded VAS For High-Growth Digital Channels](https://www.electrum.co.za/solutions/expanded-vas-for-high-growth-digital-channels)

###### Resources

- [Implementation Guides](https://www.electrum.co.za/documentation/product-guides)
- [Solution Updates](https://www.electrum.co.za/solution-updates)
- [Reports, whitepapers & flyers](https://www.electrum.co.za/insights)
- [Blog](https://www.electrum.co.za/blog)
- [Developer Portal](https://api.electrum.io/)

###### Contact us

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