MTN’s Fintech subsidiary in South Africa has ventured into the space of remittance and payments, to enable users to send cash abroad and businesses to accept payments via its app.
With about 9 million registered mobile money subscribers in South Africa, Chief Financial Services offer MTN South Africa, Bradwin Roper announced that the company has set its focus on the estimated 15% of South Africans that are still unbanked.
He added that this development will enable registered users to send money across over 10 African countries in real-time.
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MTN fintech subsidiary has also launched a virtual wallet for business owners that will allow them to accept payments via the app or QR code, a way to limit the use of cash by some of South Africa’s “spaza” shops, the informal stores that are found in township corners of the country.
To make payments easier for such business owners, MTN also launched what it calls cheaper-to-rent point-of-sale devices that merge payments and other added services like airtime purchases into one device.
About 80% of South Africa’s population visit spaza shops daily, and the spaza industry is valued at about 178 billion rand ($9 billion), Roper said.
The company also launched funeral insurance that allows customers to take out cover for either six months or 12 months with just one payment, instead of monthly debit orders until they die.
As the Fintech landscape in South Africa continues to evolve, MTN’s Fintech arm foray into remittance and payment represents a notable effort in the company’s efforts to diversify its services and contribute to the financial well-being of its customers.
This strategic approach will see it leverage its existing infrastructure and customer base to offer digital solutions that are user-friendly, secure, and accessible to a wide range of customers, especially the unbanked.
The company recognizes the importance of remittance and payments, as many Africans are scattered across Europe, and send money regularly back home to support their families.
In this light, MTN South Africa’s fintech arm’s strategic move aims to provide efficient and affordable remittance services to facilitate cross-border money transfers. This not only offers users convenience but also contributes significantly to financial inclusion in the country.
Notably, MTN’s established presence in the telecommunications sector provides it with a competitive advantage. It has a vast network of agents, mobile money services, and distribution channels that can be leveraged to facilitate remittances and corporate payments efficiently. This positions MTN South Africa as a formidable player in the fintech space.