MTN revealed plans to expand its fintech arm to include remittance services in a move to tap into the 15% of South Africans who are unbanked.
Reuters reported, that MTN will launch services on its app enabling users to send cash abroad and make payments to businesses. MTN mobile money users will be able to send money to recipients in 10 African countries on the same platform in real-time.
A virtual wallet has been launched for business owners to enable them to accept payments via the MTN app or QR codes, a way to limit the use of cash in informal shops known as spazzas, across townships.
MTN South Africa chief financial services officer Bradwin Roper said 80% of South Africans visit spaza shops daily and the industry is worth around ZAR178 billion (US$9 billion).
Business owners can also take advantage of MTN’s newly launched point-of-sale devices which it claims are more affordable than rivals and they can top up airtime as well.
Additionally, MTN has launched financial insurance which allows customers to take out cover for six or 12 months in one payment instead of direct debits until one passes.
MTN has around nine million registered mobile money users in South Africa, chief financial services officer Bradwin Roper said the operator is mainly targeting the unbanked of South Africa.