Virgin Money South Africa (Virgin Money SA) is planning to introduce a bank account with zero monthly fees and cheap cross-border payments on its fintech app called Spot, reported Reuters.
Speaking to Reuters, Virgin Money SA CEO Andre Hugo said that the app upgrade will be done in the fourth quarter of 2019.
At present, one can use Spot to pay other individuals or merchants.
With the new initiative, Virgin Money SA aims to make money from cross-border payments fees.
However, Hugo assures that these fees would be lower than those charged by banks.
Furthermore, Hugo unveiled the firm’s intention to foray into new markets.
Hugo did not name the markets identified for the expansion drive but stressed that the firm would prioritise developing markets.
According to Hugo, Spot had over 285,000 users in six days after its inception.
Together, Spot and the personal loans and credit card operations of the firm have a user base of over 500,000, he said.
“Our magic number is 2 million customers in the next 18 months. We’re the fastest growing Virgin company ever…so as a result the group is looking at us and saying: ‘Well, how can we replicate this in other areas?’,” Hugo noted.
Virgin Money South Africa started operations in 2006 with the launch of a credit card.
Recently, it has shifted its focus on digital.
The firm does not have a banking licence but can collaborate with banks to provide banking services.