MTN South Africa is expanding its presence in the financial services sector by offering “budget-friendly” funeral cover to South African consumers.
- The prepaid funeral insurance, branded as Khava, is the first in a series of insurance products tailored for the local market, according to MTN.
- The insurance scheme is supported by Sanlam and facilitated by aYo Intermediaries South Africa. The onboarding process is conducted through WhatsApp, while collections and claims payments utilize MTN’s Mobile Money (MoMo) platform.
- Customers using MoMo can choose coverage for six or 12 months by making a one-time premium payment. The MyLife Khava plan offers benefits of up to R20,000 for individuals, while the MyFamily Khava plan extends coverage to family members with a collective sum of R33,750.
- MTN South Africa’s collaboration with aYo South Africa aims to make essential financial services more inclusive and responsive to the needs of ordinary citizens, according to Bradwin Roper, Chief of Financial Services at MTN South Africa.
Telecoms operators in South Africa, including MTN, Vodacom, and Telkom, are increasingly venturing into financial services as they seek to diversify their revenue sources beyond voice and data products, which face margin pressure.