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JSE-listed Weaver Fintech is preparing to enter South Africa’s mobile market through the launch of a mobile virtual network operator (MVNO), a move it believes will deepen customer loyalty as its fast-growing payments business becomes the group’s main growth engine.
The company, formerly known as HomeChoice International, on Wednesday reported a 10% increase in first-half revenue to R2.8bn, driven by strong expansion in payments through PayJustNow, lending and insurance. Payments revenue surged 88% to R432m, making it one of the standout performers in the group.
CEO Sean Wibberley said Weaver expected to soft launch PJN Mobile during the third quarter, describing it as a low capital initiative that would help the company reward and incentivise customer engagement across its ecosystem.
MVNOs, such as banks and retailers, use existing infrastructure of mobile network operators like MTN and Vodacom to offer data and voice services to their customers.
The planned MVNO launch comes as Weaver accelerates its transformation from a lender to a broader fintech platform serving 5.1-million customers. The group added more than 130,000 new customers a month during the six months to June, while customer uptake of multiple products continued to rise.
While the mobile venture represents a new revenue stream, the company’s biggest momentum remains in digital payments, particularly buy-now-pay-later (BNPL) products through PayJustNow, used across major retailers.
Gross merchandise value processed through Weaver’s payments businesses jumped 76% to R5.1bn, supported by strong demand for its PayJustNow Pay-in-3 instalments and growing adoption of PayStretch, its 12-payments plan offering.
Management said longer-term payment products were gaining traction as consumers looked for more flexibility when purchasing higher-value items. PayStretch transactions increased 286% during the period.
Wibberley said Weaver sees scope to introduce additional repayment options, including shorter two-month and medium-term six-month payment plans.
Payments now contribute 21% of fintech revenue, up from 14% a year ago, while fee income rose 43% and accounts for about 40% of fintech revenue.
Despite the strong operational momentum, profitability came under pressure. Profit after tax fell 9.9% to R272m and headline earnings per share declined 10.2% to 256.5c as Weaver increased provisions for bad debts and tightened lending criteria amid mounting pressure on household finances.
The group cut lending approval rates, reduced exposure by R700m and strengthened collections processes as it sought to improve portfolio quality.
Looking ahead, Weaver expects payments, insurance and new digital services to drive growth, with the rollout of PJN Mobile, expanded payment terms and a new advertising technology platform set to add further fee-based revenue streams.
“Weaver is building a connected ecosystem with shopping, financial services and digital solutions for our customers,” he said.
“Our flywheel is accelerating... Payments provide the entry point, new products unlock growth and cross-sell, data and analytics deepen our moat, and frequent customer engagement drives exponential value creation. Our connected ecosystem is improving our customers’ digital experience while also providing merchants with significant returns,” said Wibberley.
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