MTN launches affordable instant payments service

MTN South Africa has announced the launch of MoMo Pay, a digital payments system for small informal businesses in the country.

MTN designed the product for ease, affordability, and scale. It enables merchants to accept instant payments via QR code, merchant ID, or payment request.

MTN says it charges a minimal fee of 0.5% for transactions processed through MoMo Pay.

The platform enables merchants to sell services like airtime, data, prepaid electricity, and bus tickets, and earn commission on every transaction.

They can also accept payments for DStv and other supported subscriptions.

“In a country where over 80% of transactions in the informal sector remain cash-based, the need for inclusive, low-cost financial tools is more urgent than ever,” said MTN.

“MTN’s mobile money platform, MoMo, is stepping up to fill this gap with the launch of MoMo Pay, a digital payment solution tailored for informal merchants.”

According to Kagiso Mothibi, fintech CEO at MTN South Africa, the informal economy is rich with unfulfilled entrepreneurial potential.

“With MoMo Pay, we’re not just digitising payments — we’re unblocking a pathway to financial dignity and scalable opportunity,” he said.

The network operator said its dedicated merchant acquisition team provides on-the-ground training and seamless onboarding.

In this regard, thousands of merchants have already been onboarded, and adoption is ramping up rapidly.

“With no registration fee, fast setup, and a mobile-first user experience, MoMo Pay is already gaining traction in townships, rural areas, and high-footfall urban markets,” said MTN.

Mothibi said the platform was designed to be radically accessible, with no paperwork required and no complicated tech.

“Just a smartphone and a vision to grow,” he said.

MTN has big plans for MoMo Pay, with the platform laying the foundation for a full-spectrum digital financial ecosystem.

It aims to offer a service where merchants can access microloans, build savings, insure their operations, and participate more in the formal economy.

“We see MoMo merchants not just as sellers, but as community hubs,” says Mothibi.

“They’re trusted touchpoints, and we want to give them the tools to do more, serve more, earn more, grow more.”

MTN wants to digitise hundreds of thousands of small informal businesses over the next three to five years.

“We want every informal trader in this country to have a shot at digital prosperity,” says Mothibi.

“MoMo Pay is our first major move to make that happen — because real inclusion starts at the street level.”