Banking28.09.2023

MTN gunning for the big banks

MTN’s mobile money platform MoMo has launched several new features — including a business wallet, streamlined payments, and international remittances — in a major challenge to South Africa’s traditional banks.

The mobile network operator said the features aligned with its mission to provide a low-cost alternative service that enables individuals, including those without bank accounts, to share in the benefits of formal financial services.

MTN described the MoMo Business Wallet as a “game-changer” for its ability to help businesses streamline operations and maximise efficiency.

“Not only does it allow businesses to receive payments directly from customers in real-time and without incurring any transaction fees, providing a substantial boost to profitability, it also opens doors to the vast potential base of customers who are already embracing MoMo wallets,” MTN said.

MTN South Africa chief financial services officer Bradwin Roper explained that the wallet allowed businesses to accept payments directly from customers for various transaction types — including prepaid services and shopping vouchers — with no fee.

“Flexible cash-out options ensure easy access to funds, providing both convenience and security in financial management. It’s the ultimate in simplified financial transactions,” Roper said.

In addition to the Business Wallet, MTN is also launching MoMo Eazi, a facility allowing users to register a profile on the MoMo App that allows for card payments without the complexities of a full registration process.

Roper said that MTN stores will also feature new point-of-sale devices that will enable users to make card payments at a lower service fee, giving customers the choice to pay for purchases with MoMo and receive cashback rewards.

“The storeowner benefits by not having a transaction fee deducted on these MoMo services,” said Roper.

Bradwin Roper, MTN South Africa chief financial services officer.

MoMo is also improving cross-border money transfers with international remittances.

“This innovation empowers both foreign nationals in South Africa and local residents to send money seamlessly to MoMo users across 12 African countries, all without data charges for MTN customers who receive 100MB of data upon registration,” MTN said.

In partnership with SARB-approved dealer — Clicksendnow — MTN MoMo international remittance destinations are now available in the following countries:

  • Benin
  • Cameroon
  • Congo Brazzaville
  • Ghana
  • Guinea Conakry
  • Guinea Bissau
  • Ivory Coast
  • Liberia
  • Rwanda
  • Uganda
  • Zambia
  • Zimbabwe

MTN said it has signed up nine million users to MoMo since launching the platform in 2019.

MoMo’s suite of services includes payments, e-commerce, personal insurance, lending, and more.

Roper said MTN was committed to offering an alternative to expensive banking services.

“We are achieving this by introducing value-added platforms to our services that offer device users cheaper, more accessible options,” Roper said.

He said that people in rural areas lacking infrastructure sought connectivity, simplicity, reliability, and an increasing range of services from a single source.

“We will continue to work hard to ensure that we deliver these kinds of services to as many market sectors as possible,” Roper stated.


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