Connecting Africa is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

FinTech

MTN Relaunching Mobile Money in SA in 2020

Article Image
MTN will bring its Mobile Money service (MoMo) back to South Africa in January 2020.

The service allows customers to send, receive, save and spend money as well as pay for goods and services using their mobile phones.

It has been successful in other parts of the continent but failed to gain traction in South Africa previously and was pulled from the market in September 2016 due to a lack of commercial viability.

MTN group CEO Rob Shuter announced plans to relaunch MoMo in South Africa at AfricaCom 2018 and originally said it would come back to the country in the first half of 2019. (See AfricaCom 2018 Day 1: The Roads, the Chase & a Monoblock Phone.)

MTN said in a statement that it had finalized its engagements with all the relevant regulatory bodies and authorities including the South African Reserve Bank.

"The introduction of this mobile money service is a pivotal step in MTN's strategy and represents MTN's participation in the next phase of increasing convergence we are seeing between financial services and mobile technology," said MTN SA CEO Godfrey Motsa.

He said MoMo will run on the Ericsson Converged Wallet.

MoMo will be available to all consumers via USSD functionality as well as via app download in the Google Play store and the Apple App store by January 30, 2020.

MTN SA CEO Godfrey Motsa
MTN SA CEO Godfrey Motsa

"We are delighted to make this payments service available to South Africans as many of our people remain unbanked. Our research shows that approximately 11 million South Africans remain unbanked, while 50% of the adult population remain thinly served. MoMo aims to bridge this gap with this innovative mobile money offering, providing a payments solution that encourages financial inclusion," added Felix Kamenga, MTN SA chief officer of mobile financial services.

MTN has almost 244 million customers in 21 countries in Africa and the Middle East. At the end of September 2019 MTN's active Mobile Money subscribers had grown to around 31.7 million across the group. (See MTN Group Grows, SA Struggles.)

"We have learnt what to do as well as what not to do and we believe that MTN has significant footprint in South Africa to reach underbanked and underserved communities still heavily reliant on cash to transact," Kamenga said.

During the initial phase, MoMo will only be available to MTN customers and offers basic services, but the telco promises further innovation in early 2020 that aim to bring even more South Africans into the digital economy.

"We see MoMo playing a significant role to both the man on the street, by empowering our customers to make positive financial decisions, as well as the South African economy by enabling enterprise development at the formal and informal level," concluded Kamenga.

— The Staff, Connecting Africa

Innovation hub

Story

Hot startup of the month: Pan-African fintech KamaPay

This month's hot startup is pan-African fintech KamaPay, which helps individuals and businesses make cross-border payments on the continent.

Story

Afretec awards $3.3M in grants to African research teams

The African Engineering and Technology Network (Afretec) has awarded grants worth $300,000 each to 11 university research teams across Africa to advance digital technologies.

More Innovation hub

Latest video

More videos

Sponsored video

More videos

Industry announcements

More Industry announcements

Flash poll

All polls

Africa Tech Perspectives

Story

Deep dive into East Africa's tech startup ecosystem

New survey reveals a lack of access to investors, reliance on international VCs and global recession trends as the biggest barriers for East African tech startups to access funds.

Story

Challenges and opportunities for women's tech careers

A new survey reveals that COVID-19, the cost-of-living crisis, skills shortages and a lack of mentorship have negatively affected women's career development over the past two years.

Story

Survey: Opportunities for Women in Tech

Take our new survey for women across Asia, Europe and Africa looking at the biggest challenges and opportunities for women-led enterprises and trends in tech careers for women.

More AfricaCom perspectives

Upcoming events

London Tech Week
June 13-16, 2023
Queen Elizabeth II Centre, Broad Sanctuary, London SW1P 3EE
Cybertech Africa 2023
August 1-2, 2023
Kigali Convention Center, Kigali, Rwanda
Africa Tech Festival, Home of AfricaCom and AfricaTech
November 13-16, 2023
CTICC, Cape Town
More Upcoming events

Guest Perspectives

Story

Omdia View: February 2023

By Omdia Analysts

In February 2023 key events in the Middle East and Africa included a major Internet project for Africa's underserved by Liquid Intelligent Technologies and Microsoft as well as a 5G launch in Tanzania – that and more in this month's Omdia View.

Story

Omdia View: July 2022

By Omdia Analysts

Kenya and Zambia move towards 5G with new spectrum allocations while Tunisie Telecom plans to shut down its 3G network - that and more in this month's Omdia View.

More Guest Perspectives

Partner perspectives

All Partner Perspectives

Like us on Facebook

Newsletter Sign Up


Sign Up