MTN is pushing hard into mobile money services. Few can dispute the commercial logic behind CEO Rob Shuter’s determination to transform the mobile phone company founded with the help of the government in 1994 into an interconnected, mutually dependent, multipurpose digital platform offering everything from money transfer to insurance, music streaming, mobile gaming and chat messaging.
The biggest immediate opportunity lies in mobile money, a service that allows users to transfer and receive money using their phones. In its latest financial results, issued on Thursday, MTN said revenue from fintech services jumped 31% thanks to a nearly 9% growth in mobile money users. The service now counts 30-million users and processes transactions worth $44bn (about R670bn) annually.