South Africa’s MTN Mobile Money (MoMo) or e-wallet service, has
reached 8 million users following its official launch in 2012, highlighting the
increasing demand for alternatives, especially among those in rural areas
lacking traditional infrastructure.
According to the Chief Financial Service Officer at MTN,
Bradwin Roper driven by a need to reduce expenditure and service costs, South
Africans are seeking connectivity, simplicity, reliability, added value, and an
increasing range of services from a single source.
“As more South Africans
look to join the mainstream financial services sector, they encounter
discouraging fees, complexity, and bureaucratic hurdles. Compounding this is
the present economic situation, which is seeing banking fees increase, and even
double in some cases”, says Roper.
MTN
views the search for alternative services as a crucial step toward creating a
more equitable society, allowing previously unbanked individuals and those with
lower incomes or wages to benefit from the formal financial sector.
“Our commitment to this market is
expressed in our MoMo platform, which has attracted eight million subscribers
in a few years. The key to this success has not been due only to free services
but access to everyday services and the promise of future advancements,” continues Roper.
Bradwin
Roper, Chief Financial Services Officer at MTN Currently, MoMo, which is
powered by African Bank, subscribers enjoy a range of services, including
unique features like free Lotto participation, fee-free payments for DSTV
accounts, electricity, and effortless transfers to “betting wallets.” Users can
also purchase airtime and data without additional charges. The recent addition
of personal loans further bolsters MoMo’s value proposition.
“The fee-free benefits of many of our MoMo
services are significant, particularly as many individuals struggle to make
ends meet amidst mounting financial pressures. “
Another
key MoMo feature includes the availability of long-distance bus tickets now
available in the App and also over the counter with over 19 000 MoMo Agents
countrywide.
“The advantage that MTN and other
significant players in this sector have, is that we do not have the legacy
investments in technology and systems common to many mainstream financial
institutions. Our ability to offer cost-effective and convenient
smartphone-based services and quickly adapt to changing customer needs to
launch add-on services means we have a significant business advantage,” says Roper.
“Consumer trends indicate that the search
for alternative services will only accelerate into the future. Our ability to
pivot, meet demands, and control costs together with our commitment to offering
customers innovation at every step, will drive benefit for a growing customer
base well into the future.”
