Collections business turns to Genesis to size up market opportunity

A collections business focused on South Africa turned to Genesis when it needed to understand the market opportunity.

Collections are important to any business as this is how payments are accepted across a variety of payment rails (card, EFT or debit order, for example). Collections can be done in-house or through a collections business – such as the client’s.

The company was in the process of accessing additional funding from its parent company and undergoing a strategy refresh. As part of this process, an understanding of the full market opportunity was required:

• First, Genesis provided an overview of the payments sector in South Africa as well as forecasts of how this sector would change over the next five years.
• The next step was a market sizing. This entailed sizing the revenue pool per payment rail in South Africa and sizing payment revenues split by rail across key sectors. These were insurance, medical aid, personal and business lending, gambling, pension funds, other investments, automotive, telecommunications, healthcare, education, entertainment and utilities.
• From this we estimated the share of these payments collected by a collections business. This revealed the addressable market for the client.

Genesis was uniquely positioned to conduct this market sizing given our in-depth knowledge of the payments space and payment rails in South Africa.

Our analysis highlighted the sectors and payment rails that are key in terms of revenue opportunity. This in turn helped the client define their revenue targets. Ultimately, our analysis provided strategic focus for the client and direction to enhance their value proposition.