Predatory innovations are harmful to SA consumers

LAST month, one of the country's largest prepaid metering company launched an in-app electricity advance feature.

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Mobile phone network operators are offering similar services too, allowing subscribers who are short of prepaid electricity tokens to purchase them on credit and repay the amount the next time they top up.

What began as a simple mechanism to advance airtime and data has now morphed into a credit-based platform for essential services such as electricity. At first glance, this may appear to be a convenience and an innovative way to help cash-strapped consumers stretch their finances until payday. However, in reality, it is not the lifeline it appears to be.