Mobile operator MTN on Wednesday confirmed that its mobile money service will be launched in South Africa in January 2020, reported Reuters. The mobile money service will let customers send, receive, save money and pay for goods using their mobile phones.
MTN had launched its mobile money service in South Africa three years ago but withdrew from the market after failing to gain the traction it sought. But the mobile operator believes it will succeed this time around with a tweaked approach.
“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 South Africa CEO Godfrey Motsa said in a statement.
Dubbed MoMo, the mobile money service will run on the Ericsson Converged Wallet. In the initial phase, 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. Further features will be rolled out in early 2020.
MoMo users won’t need to have a bank account but they must be a resident of South Africa, 18 years or older, and have a valid South African ID.
MTN South Africa Chief Officer of Mobile Financial Services, Felix Kamenga, said MTN will start the service in a country where about 11 million South Africans remain unbanked, while 50% of the adult population remains thinly served.
“MoMo aims to bridge this gap with this innovative mobile money offering, providing a payment solution that encourages financial inclusion,” he added.
Earlier this year a subsidiary of MTN Nigeria was granted a “full super-agent” license by the Central Bank of Nigeria that would allow it to provide financial services.
