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How MTN MoMo dominates mobile banking outside Nigeria

How MTN MoMo dominates mobile banking outside Nigeria

With over 51 million MoMo users, MTN MoMo is in operation in about 16 markets, including Nigeria, Ghana, Sudan, Ivory Coast, Uganda, Zambia, Benin, Cameroon, South Africa, and Madagascar.

According to a review by MTN in 2020, it dominates Ghana with a market share of 56 percent. In Nigeria, its market share was about 50 percent. In Ivory Coast, Sudan, and Uganda, it has a market share of 34, 35 and 55 percent, respectively.

MTN MoMo is a fintech platform that provides consumers and businesses with a range of innovative digital financial services. It enables users to access payments, e-commerce, insurance, lending and remittance services, among others.

Africa’s largest telco says it is playing a key role in the evolution of the mobile financial services (MFS) industry, where it provides MFS solutions like in-store payments, remittances, prepaid services, mobile wallets, micro-loans and micro-insurance.

These will support greater digital and financial inclusion, as well as cashless and digital economies. One of the ways the telecom group is accomplishing this is the most recent agreement signed with the Cameroonian telecommunication ministry.

Experts say mobile money adoption is growing at a strong pace across the world. However, there are countries with an underdeveloped financial infrastructure, with a large number of people having no formal bank account.

MTN Mobile Money leverages the presence of mobile phones and the convenience offered by the service to the consumers. With mobile money, there is faster money transfer, safe and secure transactions, affordability and cross-border money transfers.

MTN Cameroon and Cameroon Telecommunications signed a strategic national network roaming agreement, which would see Camtel expand 2G/3G and 4G coverage in parts of Cameroon not already covered by its network, according to a statement by MTN dated April 14, 2022.

Read also: MTN’s mobile money approval puts fintechs, banks on alert

This is in line with the Cameroonian telecommunication ministry’s transformation objective, which includes initiatives to accelerate citizens’ participation in the digital economy in a cost-effective way. It is also aligned with MTN Group’s Ambition 2025 strategic intent of leading digital solutions for Africa’s progress.

Similarly, outside Nigeria, with MoMo Pay in Ghana, MTN is targeting women in female-dominated segments, including general goods market, petty traders, wholesale and retail corridors, females within the farming value chain and largely any activity that involves buying and selling.

How does MTN Mobile Money work?

MTN Mobile Money stores funds in a secure electronic account linked to an MTN mobile phone number. Before sending funds, one must confirm that the recipient has a registered MTN mobile money account.

With MoMo, users can use their mobile money account in a number of ways, including receiving and storing money, sending money to any MTN mobile phone user, sending money to mobile phone users on other local networks, withdrawing cash at any authorised MTN mobile money agent, top-up MTN airtime, pay bills, buy and pay for insurance, and pay employee salaries, airline tickets, school fees, as well as other goods and services.