MTN to expand Momo network despite decline in active wallet users

MTN Nigeria says it is expanding its mobile money subsidiary, MTN Momo network despite recording a 29.4 per cent decline in active wallet users as of the third quarter of 2022, bringing total active wallets to 1.8 million.

In its 9-month financial results for the period that ended September 30, 2022, MTN said it is going to deploy more agents while expanding its coverage to reach many unbanked and underbanked Nigerians.

The report, however, showed that registered MoMo wallets increased by more than two times to 9.9 million in the third quarter, demonstrating the underlying momentum in the ecosystem.

MTN said:  “Since the commercial launch of our MoMo Payment Service Bank (PSB) operations in May 2022, we have focused on building our fintech ecosystem and executing its growth strategy. Our active fintech users at the end of September 2022 were 11.2 million, of which 1.8 million are active MoMo wallets, down 29.4 per cent in the third quarter.

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According to the telecom giant, Fintech revenue increased by 21.9 per cent, and growth was broad-based across Xtratime and core fintech services.

“In addition, we expanded our mobile money (MoMo) agent network by adding over 21k active agents in the third quarter, bringing the total number to approximately 188k.

‘Over time, we will leverage our market-leading distribution to evolve the mix towards more advanced services across our fintech verticals, in line with our Ambition 2025 strategy.

“Digital revenue grew by 68.4 per cent as penetration of our digital products continues to deepen, driven by user journey optimisation and increased usage from our active base. Rich Media, Mobile Advertising and Content VAS drove revenue growth.”

In the third quarter of this year, the company added over 21, 000 active agents, bringing the total number to approximately 188,000.

Meanwhile the chief executive officer and president of MTN Group, Ralph Mupita, chief executive has said technology is vital in ensuring Africa’s economic development and actualizing its full potential.

In August, MTN kicked off the 5G rollout in seven Nigerian cities including Lagos and Abuja.

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“I think we will find in five years, maybe even sooner, that on the African continent, 5G is what would enable economies to accelerate their industrial development across the educational, agriculture, mining, or transportation industries.”

“If we get to 50 per cent population coverage by 2025, Nigeria will lead many nation-states in the developed markets through the extent of national coverage. 5G technology will be a critical infrastructure in the country, enabling Nigeria to meet its promise and capabilities.”