MTN Nigeria claims that the number of active subscribers on its fintech platform has increased from 6.2 million to 10.7 million people year on year, ahead of the launch of its payment service bank (PSB).
More than 160,000 active mobile money (MoMo) agents were added to the telco’s subscriber base in the first three months of 2022.
In Nigeria, “our existing MoMo business provides a solid foundation for the launch of MoMo PSB.” CEO Karl Toriola of MTN Nigeria stated this.
Before the launch of the PSB, MTN’s 10.7 million user base is expected to give it an advantage and ensure that it has a chance of overtaking the incumbent mobile banking platforms.
There are currently 19 million unique users of Paga, one of the first fintech companies granted a mobile money license, through its consumer channel and agent network of more than 120,000 agents in Nigeria.
More than $10 billion in transactions have been processed by Paga since it started commercial operations in 2012. (N4 trillion).
eBay expects to have over 10 million active users and 300,000 agent networks by the year 2021, according to the company’s claims. In the agent banking market, Kuda Bank is a small player with over 2 million registered users.
It was only after it received its Super-Agent license in August of this year that MTN’s fintech customers began to pour in. In less than four years, the telco would have amassed 10.7 million customers. It took Paga about ten years to reach 19 million users, whereas Opay only needed five years to reach 10 million.
On MTN’s dominance in Ghana and Kenya, CEO of Paga Group Tayo Oviosu stated that month. Mobile banking is dominated by telcos in these countries, Oviosu said, because of a lack of banking infrastructure. Nigeria, on the other hand, has a well-developed banking system with several financial institutions that have embraced banking innovation.
Oviosu warned, “Get ready for a marketing blitz.”
There were 11.7 million active users of MoMo’s banking service in Ghana in the first quarter of 2022. This means that at least one Ghanaian out of every hundred uses MoMo. A 1.75 percent e-levy charge, on the other hand, has forced MoMo to raise transaction fees in Ghana.
Experts believe that MTN can replicate its success in Nigeria, too. It has 74.9 million phone subscribers and 59.9 million data subscribers at the moment.
On April 25, 2022, 60 million MTN customers had submitted their NINs, making up about 85 percent of the company’s total subscriber count. At least half of the NIN base can be converted by the telco, putting it in pole position as the industry leader
Existing players are overwhelmed by the sheer volume, and there are centralized dependencies that exacerbate the problem.”. MTN PSB will be a huge success, not only because MTN is better than the competition, but also because MTN itself requires it. I agree. Victor Asemota, a tech investor, said that MTN is the most popular merchant.
With the first phase of a series of transactions to increase Nigerian ownership in MTN Nigeria completed, MTN may also have an advantage. 126,720 retail businesses became shareholders in the company as a result of the exercise. There were approximately 139,000 retail shareholders in MTN as of March 31, 2022, so the company has a significant advantage in bringing MoMo services to market.
To meet our medium-term revenue targets, we plan to keep executing our strategy. In the medium term, we will continue to focus on driving operational leverage and extracting efficiencies to support growth in earnings, cash flow, and returns,” Toriola said.
- Tags: Fintech, Karl Toriola, MTN Nigeria, Nigeria
