MTN Group’s fintech division has achieved remarkable growth and profitability in the financial year ending December 2023, according to the telco’s latest report.
MTN Group’s Fintech Unit Reports Record Growth and Profitability
The company announced significant milestones, including a substantial increase in transaction volumes and value, indicating a robust performance in its fintech ecosystem.
In 2023, MTN witnessed a notable surge in transaction volumes, soaring by 32.2% to reach 17.6 billion transactions, accompanied by a 47.4% surge in transaction value, totaling $272.1 billion.
This growth trajectory underscores the strong momentum and increasing adoption of MTN’s fintech services.
Ralph Mupita, CEO of MTN Group, expressed satisfaction with the performance, highlighting the impressive growth in advanced services revenue, which surged by 54.8%.
“The momentum in advanced services revenue (up 54.8 %) was particularly pleasing and increased its mix relative to basic services (up 21.2 %),” MTN Group CEO, Ralph Mupita, commented.
Expansion of MTN’s Fintech Footprint
The contribution of advanced services to total fintech revenue also saw a notable increase, rising to 20.4%, indicating a strategic shift towards higher-value offerings.
The expansion of MTN’s fintech footprint was evident in the growth of active MoMo users, which increased by five percent to reach 72.5 million.
Additionally, the network of agents and merchants experienced significant growth, with a 5.4% and 42.5% increase, respectively, demonstrating the increasing reach and accessibility of MTN’s fintech services.
Key markets for MTN Group, including Nigeria, Ghana, Uganda, Benin, Cameroon, and Rwanda, all recorded robust growth, reaffirming the company’s commitment to establishing the continent’s leading fintech platform.
Partnership Scope with Ericsson for Core Wallet
Mupita outlined the strategic measures undertaken to support the fintech unit’s growth, including the renewal of the partnership scope with Ericsson for core wallet platform enhancement.
This collaboration aims to facilitate advanced services product development and strengthen the foundation for future innovations.
Moreover, MTN Group’s definitive agreements with MasterCard for a minority investment in its fintech division mark a significant milestone, enabling the acceleration of payment and remittance services across the African continent.
Mupita emphasized the importance of this partnership in driving the fintech business’s growth and expanding its service offerings. He said that this relationship with MasterCard, “is a key enabler for the acceleration of our fintech business’ payments and remittance services.”
Exploring Value-Enhancing Partnerships
MTN remains committed to exploring value-enhancing partnerships and investments to further strengthen its fintech capabilities and drive financial inclusion initiatives across Africa.
With a focus on strategic collaborations and market-driven innovations, MTN is poised to sustain its leadership in the evolving fintech landscape.
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