MTN announced today that its FinTech business saw revenue rose by 12.9%, with Mobile Money (MoMo) active monthly users up by 23.3% in the third quarter of 2022.
In Q3 2022, MTN recorded a 32.7% increase in transaction volumes to 9.5 billion transactions, with transaction value up by 12.1% to $166.7 billion.
The number of active merchants accepting MoMo payments increased by 64.4% to over 1.0 million, and the total value of MoMo merchant payments rose by 64.9% to $10.8 billion.
In BankTech, MTN facilitated a total loan value of $1 billion, a 57.9% year-on-year increase, as it capitalised on its scaled mobile wallet business and customer footprint.
MTN’s InsurTech platform with JV aYo, closed the nine months with 18 million registered aYo policies, reflecting an increase of 21.6% year-on-year.
The number of active policies declined by 35.3% year-on-year due to a shift in our approach to focus on a higher average revenue per policy and new revenue streams, particularly in Uganda and Zambia, resulting in the termination of free policies.
“We are excited by the momentum and prospects of our fintech business, reflected in the strong trajectory in transaction volumes, users, agents and merchants,” Ralph Mupita, MTN CEO, informed investors.
“This lays the foundation to grow the advanced services across our BankTech, InsurTech, remittances and payment and e-commerce verticals.
“The second phase of our engagements with select potential strategic investors for binding offers for minority investment into MTN Group FinTech is progressing, and we anticipate concluding the process and getting to an outcome in early Q1 2023.”
SA Performance
The performance of the FinTech business was encouraging, with approximately 5.4 million registered MoMo users and 1.1 million monthly active users by 30 September 2022, representing a growth of 136%.
“We continue to grow the business by providing a mix of innovative and relevant digital and financial solutions, including payments at 27 000 retail points, utilities’ payments, gaming as well as digital services. Furthermore, there has been an increase in app adoption resulting in 2.5 million downloads in the nine months to September 2022.”
Nigeria Performance
FinTech revenue increased by 21.6%, and growth was broad-based across Xtratime (airtime lending product, up 20.6%) and core fintech services (wallet and agency business, up 232.0%).
MTN Nigeria’s FinTech active users rose by 68.7% year-on-year to 11.2 million, of which 1.8 million represent active MoMo wallets.
However, registered MoMo wallets increased by more than two times to 9.9 million in Q3 2022, demonstrating the underlying momentum in the ecosystem.
In addition, MTN Nigeria expanded its Mobile Money (MoMo) agent network by adding over 21k active agents in Q3 2022, bringing the total number to approximately 188k.
“The agent network continued to play a pivotal role in our MoMo ecosystem and helped to drive growth in the total volume of transactions by 112.2% year-on-year”.
MoMo PSB operations in Nigeria continued to gain traction, with strong growth in the registered wallet base, demonstrating good underlying momentum.
“In Q3 2022, we focused on further strengthening IT systems and interfacing with the Nigeria Inter-Bank Settlement System (NIBSS). The primary focus for MoMo PSB remains to grow the user base and scale basic services, targeting the sizeable unbanked segment in Nigeria. We will then evolve into more advanced services over time, aligning with Ambition 2025,” said Mupita.
