'Targeting unbanked' MTN reveals 4.2 million MoMo wallets opened in two months

Telecommunications company MTN Nigeria’s mobile money wallet, MoMo, recorded 4.2 million wallets in less than two months of its launch, the firm said in its financial result for the half year 2022.

With 2.4 million wallets actively in use, the company said active fintech subscribers rose by 87.3 per cent to 11.5 million since launch of PSB on 19 May.

MTN reported Monday that in the first six weeks of operation, the 2.4 million active wallets had significantly generated volumes of MoMo transactions.

“As of the end of June 2022, we recorded 4.2 million registered MoMo wallets of which 2.4 million are active, generating MoMo transaction volume of approximately 7 million within six weeks of operations,” it said.

“Our fintech active users rose by 87.3% YoY to 11.5 million, of which 2.4 million represent active MoMo wallets. This has helped drive growth in the total volume of transactions to over 124.3 million.”

According to the statement, the company’s main objective has been to grow basic services targeted at the massive unbanked group and thereafter develop more sophisticated services across fintech verticals by utilizing its extensive distribution network.

Along with other mobile network providers, MTN received a Payment Service Bank (PSB) license to further the nation’s financial inclusion.

MoMo can accept deposits from customers, provide savings accounts as a PSB, and make cross-border transactions easier using whatever technique Nigeria has available.

MTN Nigeria, the largest corporation in Nigeria by market capitalization, received final approval from the Central Bank of Nigeria in April to launch MoMo PSB.
With the noteworthy limitations of being prohibited from granting credit and processing foreign exchange transactions, the permit enables the payment unit to offer a number of services that are offered by commercial banks.

The parent company of MTN Nigeria, MTN Group Limited, in Johannesburg, has a fintech division valued at $5 billion, or about twice as much as Airtel Africa, which was valued at $2.65 billion a year ago.