MTN returns to South African mobile money sector

MTN returns to South African mobile money sector

MTN has re-entered the South African mobile money market after shelving its previous offering over three years ago.

The operator’s CEO Godfrey Motsa trumpeted the social benefits offered by the MoMo service, which will allow users to transfer cash and make online payments with retailers via an app for smart devices or SMS for other devices. The launch has adhered to the timeframe that the operator laid out in December 2019.

MTN partnered with financial services provider uBank to develop Momo, with Motsa noting that at a group level, MTN’s mobile money offerings have delivered value to its other markets. The group has long aimed to resume mobile financial services in South Africa, having shuttered its previous service after proved commercially unviable.

“We want to compliment the current banking system. In so doing, we help job creation and we also diversify the MTN portfolio”, said Motsa.