Standard Bank Connect, the mobile business of Standard Bank, is entering South Africa's highly contested prepaid market. This move comes after years of offering packages to only contract customers. The bank's head of Standard Bank Connect, Kartik Mistry, stated that prepaid accounts for around 85% of the mobile market in South Africa, making it a strategic space for the bank to capture a larger share.
Standard Bank Connect introduced its mobile virtual network operator (MVNO) offering in 2018 in partnership with Cell C. The unit has grown to more than 300,000 mobile customers but has shifted its network services to MTN. MVNOs lease network infrastructure from mobile operators to sell data and voice services to customers. Other players in this space include FNB, Capitec, Mr Price, and Pick n Pay.
The prepaid market in South Africa is highly saturated and competitive, dating back to the 1990s. This has made it a challenging market for the country's major telecommunications companies. Instead of competing on data prices, Standard Bank aims to create customer stickiness by offering a "value-centric proposition" built on flexibility and reliable network quality, integrated with the bank's UCount rewards system.
Mistry explained that the bank's strategy is not to engage in a "race to the bottom" on data prices but to provide consistently good value to customers. In June, Standard Bank Connect started offering support for inbuilt SIM cards for smartphones and other devices, known as eSIMs. This allows users to activate a cellular plan without a physical SIM card, enabling them to switch networks or add a second line easily.
In 2025, the bank rebooted its mobile device offering with a broader range of tech brands and financing terms to boost customers for its telecom business. The strategic case for investing in mobile is clear: the share of consumer wallets dedicated to data and airtime has fundamentally changed, with connectivity now budgeted as an essential utility.
Mistry noted that connectivity enables various services for consumers, including banking, work, education, entertainment, commerce, and government services. By embedding connectivity features within the bank's existing infrastructure, the goal is to maximise customer retention and the stickiness of its overall offering. Running an MVNO provides Standard Bank with valuable data and engagement touch-points.
The bank's new prepaid offering must continue to find ways to keep customers using its SIM cards. Consumers are avoiding rigid contracts in favour of flexibility, and using multiple SIMs for different purposes is becoming the norm. Mistry stated that Standard Bank Connect is okay with this multi-SIM approach and understands that it's the nature of the market.
Key points
- Standard Bank Connect is targeting 85% of the mobile market in South Africa with its prepaid offering.
- The bank's strategy is to provide consistently good value to customers through a "value-centric proposition".
- Standard Bank Connect's move into the prepaid market is driven by the changing share of consumer wallets dedicated to data and airtime.
