The mobile operator MTN South Africa announces the reintroduction of its Mobile Money solution on the local market in January 2020. The service called MoMo will run on the Ericsson Converged Wallet system.
In its initial phase, it will be available to MTN customers and will allow them to send and receive money, purchase prepaid services such as electricity, and pay for goods at selected outlets. Godfrey Motsa, Chairman and CEO of MTN South Africa, explained that “the introduction of this mobile money service is a crucial step in MTN’s strategy, and represents MTN’s participation in the next phase of convergence growing we see between financial services and mobile technology. “
Felix Kamenga, Managing Director of Mobile Financial Services at MTN South Africa, says the relaunch of the Mobile Money service will meet the needs of consumers in a market where around 11 million South Africans are unbanked, while nearly 50 % of the adult population remains underserved. MTN South Africa relaunches its Mobile Money after its interruption three years ago for lack of commercial viability. After three years of activity, the South African subsidiary had failed to cross the 500,000-subscriber mark and register the same success as the other subsidiaries of the group.
In March 2018, as the telecommunications company matured the recovery of Mobile Money, Rob Shuter, the president and CEO of MTN Group, had stressed that this return to the market would not be done by a simple service of sending and receipt of money but with financial means. products such as micro-credits, savings or insurance.