This archive report was first published on 20 December 2019.
After abandoning mobile money services in South Africa in 2016, citing a lack of commercial viability, MTN is set to relaunch the service in January 2020.
The service, dubbed MoMo, will be available through an app or using USSD functionality on non-smartphones, allowing customers to send, receive, save, and pay for goods using their mobile phones.
Initially, the service will be available to MTN customers and offer basic services such as sending money to any mobile phone number in the country, buying prepaid services like electricity, and paying for purchases at selected till points.
According to MTN, the introduction of this mobile money service is a pivotal step in its strategy, representing the company's participation in the next phase of increasing convergence between financial services and mobile technology.
MTN South Africa CEO, Godfrey Motsa, said, "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."
MTN's move comes on the heels of the Central Bank of Nigeria licensing MTN Nigeria to provide financial services in August this year.
