MTN’s Mobile Money Service Is Gaining Traction In South Africa

MoMo
Fintech (financial technology) on smart phone concept. Jirsak / Shutterstock.com

The MoMo, a mobile money service, for MTN is gaining traction with its South African subscribers.

Since its relaunch in South Africa in January 2020, MoMo has performed well, with approximately 3.1 million registered users on 31 March 2021, said MTN.

“The focus remains on scaling the MoMo business and deepening financial inclusion through driving adoption as well as innovative and relevant service offerings,” the company informed investors today.

Also read: Why the Relaunch of MTN’s MoMo is More Than a Mobile Money Service in SA?

MoMo allows users to purchase airtime, prepaid electricity, and pay for their municipal bills and DSTV subscriptions.

In September 2016, MTN revealed it was withdrawing the MoMo offering in the country due to a lack of commercial viability.

The service was first launched in 2012 when MTN partnered with the South African Bank of Athens, Pick n Pay and Boxer stores to offer a mobile money service.

It involved enabling the opening of simple bank accounts via phones.

But it’s important to grasp the goal of the relaunch of MoMo in South Africa.

The move reflects a consistent escalation in ambition by MTN, which already delivers financial services to 30 million people through MoMo across the continent.

If MTN succeeds even modestly with its plans for MoMo in South Africa, it could unleash new innovative service for its customers.

Momo’s likely success in South Africa would mean MTN has succeeded in diversifying its revenue streams.

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