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MTN Nigeria has announced that its MoMo Payment Service Bank (PSB) achieved a milestone with 5.3 million active wallet users on its platform as of December 2023, representing an impressive growth of 3.3 million users. This revelation was part of MTN’s full-year 2023 financial results, illustrating the significant impact of its fintech business on the overall company performance.
The success of MoMo PSB was attributed to the expansion of its agent network, which increased by 103,000 to a total of 327,000 during the year. Additionally, the active merchant ecosystem, initiated in March 2023, surpassed 324,000 by December 2023.
CEO Karl Toriola commented on MTN’s fintech business performance, stating, “Our fintech revenue increased by 2.4%, led by Xtratime (our airtime lending product), which rose by 2%. Despite challenges from the NIN requirement for KYC introduced in Q4 by the CBN, we added 3.3 million active wallets in the year to 5.3 million. This helped to drive MoMo PSB revenue, which rose by 8.1%.”
Toriola highlighted the growing adoption and increased activity within the fintech ecosystem, contributing to a significant transaction volume growth of 49.2% YoY. MTN’s MoMo agent network also expanded by 46.0% YoY, reaching over 326,000, while the merchant ecosystem, established in March 2023, now boasts over 324,000 merchants.
Regarding MTN’s digital business, Toriola noted its continued traction through optimized digital service offerings, improved customer journeys, and partnerships. The active user base for digital services, excluding Ayoba, witnessed a 57.2% increase to around 8 million. Ayoba, MTN’s instant messaging platform, recorded a 65.6% growth, reaching 8.6 million active monthly users.
Toriola emphasized the company’s commitment to onboarding new partners within the digital ecosystem and expanding service offerings to sustain business growth. Overall, service revenue from digital services experienced a remarkable 69.9% increase.
It’s noteworthy that MTN obtained a Payment Service Bank (PSB) license from the Central Bank of Nigeria in 2022, enabling MoMo to collect deposits, offer savings accounts, and facilitate cross-border transfers, contributing to the nation’s financial inclusion objectives.
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