A value-added service (VAS) is a feature that can be added to a core product to enhance the user experience or service that could function as a standalone product or feature
The rise and rise of value-added services in South Africa
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 R27-billion-a-month industry.
Our recently released VAS Report shows clearly that digital goods and services are on the rise in South Africa. While the report focuses primarily on current and future trends, it’s helpful to track the history of VAS for context and clues to its upward trajectory.
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.
More recently, the definition of VAS has 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 VAS 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 payments history that initiated exciting changes in the VAS 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 2024 VAS report here for more insights and recommendations.
What are examples of value added services In South Africa?
Major value-added services
Live streaming.
Location-based services.
Missed call alerts and voicemail box.
Mobile advertising.
Mobile money and M-commerce-based services.
Mobile TV and OTT services.
Ring tones.
Online gaming.
What customers see as value-added In South Africa?
We then develop a relationship between our score and the competition. Customer Value added is our Customer’s perceived rating or score of the value we deliver divided by the perceived rating or score competition gets on the value they deliver to their customers.
How do you calculate value added services In South Africa?
The basic formula to calculate financial value-added for a product or service is:
Value-added = Selling price of a product or service − the cost to produce the product or service.
GVA = GDP + SP – TP.
EVA = NOPAT − (CE ∗ WACC)
MVA = V − K.
CVA = Gross cash flow − economic depreciation − capital charge.
What is an example of a value-added product In South Africa?
Value-added products are raw agricultural products that have been modified or enhanced to have a higher market value and/or a longer shelf life. Some examples include fruits made into pies or jams, meats made into jerky, and tomatoes and peppers made into salsa