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0 News Ghana, Latest Updates and Breaking News of Ghana, News Ghana, https://newsghana.com.gh/mtn-eyes-full-financial-services-expansion-as-south-africas-central-bank-opens-door-to-fintechs/
South Africa’s second-largest mobile network operator, MTN, is setting its sights on becoming a comprehensive financial services provider, further expanding its MoMo mobile money platform.
This strategic shift comes as the South African Reserve Bank (SARB) explores potential changes to the national payments system, which could allow non-banking fintechs like MTN to access it directly.
MoMo, a mobile payments and money transfer platform that currently boasts 11 million registered users, has already gained significant traction in the fintech space, with 3 million active users. It primarily serves small businesses, informal traders, and low-income consumers, offering a range of services that have made it a popular alternative to traditional banking options.
At present, MTN collaborates with African Bank to offer financial services through MoMo. However, SARB is considering new frameworks that would permit fintechs to bypass traditional banking institutions and interact directly with the national payments system. Tim Masela, the head of the SARB National Payments System, stated that these moves are designed to build a modern, inclusive financial system that embraces non-bank innovation.
Kagiso Mothibi, MTN South Africa’s Chief Fintech Officer, confirmed that the company is actively pursuing a banking license. This would enable MTN to cut ties with its current banking partner, thereby gaining full control over its financial services and positioning MoMo as a genuine low-cost alternative to conventional banking.
MTN has already made substantial progress with MoMo by introducing features such as business wallets, international remittances, and a partnership with Mastercard to issue both virtual and physical payment cards. These innovations have driven a significant increase in MTN’s fintech revenue, which saw a 61.8% year-on-year growth in Q3 2024 alone.
MTN’s move into financial services follows a similar push by its main competitor, Vodacom, which has expanded its financial offerings through platforms such as VodaPay and M-Pesa. As revenue from traditional mobile services slows, due to market saturation and decreasing data prices, both telecom giants are increasingly looking to diversify their business models.
With the SARB paving the way for fintechs to play a larger role in South Africa’s financial ecosystem, MTN’s push to secure a banking license signals a new chapter for financial inclusion and innovation in the country. This could reshape how millions of South Africans access banking and financial services, positioning MTN at the forefront of the fintech revolution.
News Ghana, Latest Updates and Breaking News of Ghana, News Ghana, https://newsghana.com.gh/mtn-eyes-full-financial-services-expansion-as-south-africas-central-bank-opens-door-to-fintechs/
