MTN, through MoMo, is pursuing banking license in South Africa

MTN, through MoMo, is pursuing banking license in South Africa

MTN MoMo is a mobile money service that allows users to store, send, and receive money, and make purchases using their mobile phone. Now, the mobile money service is aiming big with a move to obtain banking license in South Africa. Currently, MTN MoMo South Africa relies on African Bank as its primary core. However,  securing a banking license from the South African Reserve Bank (SARB) to operate independently will allow MoMo to operate without relying on African Bank, granting MTN full control over its financial services. If MoMo receives the banking license, financial services offerings will be stepped up. In other words, introduction of a broader range of services like loans and savings accounts, and support seamless cross-border transactions will be enabled. Additionally, MoMo would retain more revenue by eliminating shared fees with its sponsor bank. The fintech will also attract more customers with enhanced offerings, and gain regulatory credibility by dealing directly with the coun…