MTN South Africa launches remittance and payment services

MTN South Africa, a leading mobile phone operator in the region is launching remittance and payments services as it strives to expand its fintech arm of business. To begin with, it will allow its users to send funds abroad. Additionally, businesses can accept payments through its MoMo mobile app.

MTN’s remittance and payments services

Amid its growth strategy, MTN South Africa is focusing on the 15% of the South Africans who remain unbanked. The firm has about 9 million registered mobile money subscribers in the country. Besides, it has grown into a major telecommunications provider in Africa with a subscriber base of about 223 million.

Its chief financial services officer, Bradwin Roper stated, “At MTN, we are committed to offering an alternative to expensive banking services. We are achieving this by introducing value-added platforms to our services that offer device users cheaper, more accessible options”.

With the launched services, mobile money users based in South Africa will be able to send funds to recipients in over 10 countries within the continent in real time. Granted, the recipients also have to be registered users of the MTN network.

MTN South Africa has also introduced a virtual wallet that will enable business owners accept payments through a QR code or app. This will especially be beneficial to “spaza” shops by lowering cash transactions. Spazas are informal stores popular in the region, with the industry valued at about $9 billion (178 billion rands.

Notably, the payments service will attract a 4% service fee. MTN asserts that the amount is half of what its competitors currently charge.