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BLUE LABEL INTEGRATED ANNUAL REPORT 2014
AIRTIME
NATURE
OF BUSINESS
CONTINUED
a replacement, but as an alternative to postpaid.
Prepaid empowers new groups of consumers and our
distribution to them is the cornerstone of our business.
The word “prepaid” is often perceived as a poor
man’s mechanism for the purchase of goods and
services. However, the convenience and budgetary
control that this method of transacting now extends
to all classes of the economic pyramid, is ameliorating
this perception.
Consumers prefer transacting in
prepaid because:
➔
Prepaid products are the ultimate
budgeting tool, as consumers have
absolute choice and control over their
spend.
➔
The majority of prepaid transactions are
cash-based and using prepaid as a payment
mechanism eliminates the requirement for
credit checks.
➔
Prepaid products can be conveniently
topped up, either virtually or physically, as
and when required by consumers.
➔
Prepaid products are sold across a broad
footprint of traditional and non-traditional
outlets.
➔
Prepaid products enable the world’s
unbanked and badly banked consumers to
transact efficiently.
The Group’s ability to
develop and distribute
innovative prepaid
products and services
through its global footprint of touch points has
allowed it to “take” first-world products
and services to these consumers
and bridge the “access” gap.
In essence, Blue Label is able to
enhance the consumer’s ability to
transact conveniently, affordably and
with greater accessibility and choice.
Prepaid is a convenient
method of payment
for consumers, who are now able to purchase Blue
Label’s products anywhere and anytime. Prepaid
provides for forced discipline in budgeting, ensuring
no surprises at month-end, as is so often the case in
the postpaid world.
The term “prepaid” has evolved into words such as
“pay-as-you-go” or “capped” – the latter particularly
favoured in Australia and the USA. Another
development in this space is “hybrid”, which is
postpaid with a specified monthly limit, and when
exhausted, is immediately sequenced by a prepaid
top-up for the same goods or services.
We believe that a key to distributing products and
services in emerging markets is to ensure that they
are available as a prepaid offering, not necessarily as