MTN Launches New Instant Payment Service, Firm's BankTech Processes over $500m in Loans
- MTN has launched an instant payment service, MoMo Pay, a digital payment platform for small business owners
- The company stated that MoMo Pay was designed to be flexible, scalable and adaptable, allowing merchants to accept instant payments
- Users and merchants on the platform can accept payments via QR code, merchant ID, or payment request
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
MTN South Africa has announced the launch of MoMo Pay, a digital payment platform for small businesses.
The company designed the product for flexibility, affordability, and scale, allowing merchants to accept instant payments through QR code, merchant ID, or payment request.
Source: Getty Images
Types of services on MoMo Pay
The telco disclosed that it charges a small fee of 0.5% for transactions processed via MoMo Pay.
It allows merchants to sell services like airtime, data, prepaid electricity, and bus tickets, enabling them to earn commission on every transaction.
Merchants on MoMo Pay can also accept payments for DStv and other subscription services.
The company disclosed that the new service will benefit over 80% of businesses in the informal sector with seamless transactions, financial inclusion, and low-cost financial tools.
MoMo Pay to digitise small businesses
The telecom giant’s MoMo is stepping up to meet the need with the launch of MoMo Pay, a digital payment solution designed for informal merchants.
Kagiso Mothibi, MTN South Africa's fintech CEO, said the informal economy is filled with unfulfilled entrepreneurial potential.
He disclosed that with MoMo Pay, the company is doing more than digitising payments, but opening up a pathway to financial dignity and scalable opportunity.
MTN said that its dedicated merchant acquisition team provides on-the-spot training and seamless onboarding for merchants on MoMo Pay.
It disclosed that thousands of merchants have already signed up and are adopting MoMo Pay rapidly.
Regarding fee, setup, and mobile-first user experience, MTN said MoMo Pay is already getting the desired attention in towns, rural areas, and urban markets.
MTN unveils MoMo Pay’s target market
Mothibi disclosed that the new platform was designed to be accessible, with no need for paperwork and complicated onboarding processes.
The MTN official said users can get a first-class and reliable service with just a smartphone.
According to a report by Broadband, a tech reporting platform, MoMo Pay aims to offer services, allowing merchants to access loans, build savings, insure their operations, and participate in the formal economy.
“They’re trusted touchpoints, and we want to give them the tools to do more, serve more, earn more, grow more,” MTN said.
The report said that the telecom firm wants to digitise thousands of small businesses in the next five years.
MoMo Pay is not in Nigeria
“We want every informal trader in this country to have a shot at digital prosperity. “MoMo Pay is our first major move to make that happen — because real inclusion starts at the street level,” says Mothibi.
MoMo Pay has yet to launch in countries like Nigeria, where the telco operates the MoMo Payment Service Bank (PSB).
However, experts say if launched in Nigeria, MoMo Pay will boost Nigeria’s informal sector and improve real-time transactions.
Source: Getty Images
MTN’s BankTech processes $592m in three months
The development comes as MTN Mobile Money Unit, BankTech, said it disbursed about $592 million in loans in the first quarter of 2025.
The development is contained in the group’s financial statement, which is the highest since BankTech launched in August 2023.
MTN’s BankTech offers APIs to fintech firms
The rise shows the growing demand for microloans and the rising role telcos play in Africa’s credit ecosystem.
The MTN Group’s digital lending arm is the company’s strategic push into the BaaS sector, offering APIs to enable fintech startups, businesses, and digital platforms to integrate financial services, such as lending, savings, and digital insurance into their ecosystem.
TechCabal reports that loans are issued to individuals and businesses via the BankTech platform.
MTN Nigeria spends N202 billion on network upgrade
Legit.ng earlier reported that MTN Nigeria said it has invested about N202.4 billion, representing 159% yearly, in infrastructure upgrades and network expansion to boost service delivery and capacity.
The company disclosed this in its unaudited financials for Q1 2025, saying its subscribers grew by 8.2% to 84.1 million, an addition of 3.2 million subscribers during the review period.
The telco disclosed that its active data users increased by 13.0% to 50.3 million, an additional 2.6 million users.
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Source: Legit.ng
