In a strategic move aimed at reshaping the fintech landscape in South Africa, MTN South Africa introduced its comprehensive mobile money (MoMo) platform, MoMo 2.0, just two weeks ago. The super app format hosts a suite of services, including the MoMo Business Wallet, MoMo Eazi, International Remittances, point-of-sale devices, and life insurance packages.
The MoMo Business Wallet is set to revolutionize how businesses receive payments in real-time, free of transaction fees. On the consumer side, MoMo Eazi empowers users to make seamless payments. Moreover, the International Remittances feature allows foreign nationals in South Africa and local residents to send money across 12 African countries without incurring data charges. The introduction of a point-of-sale device further enhances convenience for customers, and a life insurance package provides an all-encompassing financial experience.
MTN’s MoMo service made a triumphant return to the South African market in 2020 after a three-year hiatus and now boasts 9 million subscribers. The ultimate objective, according to Bradwin Roper, Chief Financial Services Officer at MTN South Africa, is to become “one of South Africa’s premier financial services platforms.”
In a recent interview, Roper elaborated on the rationale behind offering this wide range of services within a super-app format, stating that the goal is to provide unparalleled convenience and access to financial products. The app covers everything from payments and wallets to insurance services, streamlining the user experience and promoting digital and financial literacy.
Roper emphasized that their approach is driven by a desire to create shared value for customers. With the MoMo Business Wallet, they have set a new standard by offering zero transaction fees, ensuring that when a customer transacts R100, they receive R100. MTN is committed to leveraging technology to unlock shared value and shared prosperity for its customers.
Being part of MTN, South Africa’s second-largest mobile network operator, provides a substantial advantage in terms of trust and sophistication. MTN’s reputation for digitization across the continent adds to the credibility of MoMo, helping attract and retain customers within the product.
To stay ahead and meet the evolving needs of the market, Roper noted that they would consider building, buying, or partnering with external entities as necessary. The recent partnership with South African companies for the remittance product and point-of-sale device illustrates their commitment to collaborating to provide innovative solutions for their customers.
When asked about the inspiration behind MoMo’s return and the extensive services offered through MoMo 2.0, Roper highlighted the significant market opportunity in South Africa, where 15% of citizens remain unbanked. Additionally, the R100 billion spaza industry, serving 80% of the population, presents another vast opportunity. MTN’s unique approach centers around solving citizens’ financial needs and innovating solutions where traditional financial services fall short.
With 22,000 agents already operational across South Africa, MTN’s MoMo is poised to make a profound impact on the financial landscape, offering digital and financial solutions at a scale never seen before.
MTN’s MoMo 2.0 represents a significant step towards transforming the fintech industry in South Africa, providing a one-stop solution for consumers, businesses, and communities across the nation.