MTN, South Africa's second-biggest mobile network operator, plans to acquire a banking license once the South African Reserve Bank (SARB) allows fintechs and non-banking entities direct access to its national payments system. MTN currently offers limited transactional banking services through its MTN Mobile Money (MoMo) platform, targeting small businesses and low-income consumers. The SARB is developing frameworks to enable fintechs like MoMo to participate directly in core banking services, recognizing the convenience and reach of these non-bank players in the evolving financial landscape.
MTN plans to acquire a banking licence once the South African Reserve Bank opens up its national payments system to fintechs and other non-banking entities,South Africa’s second-biggest mobile network operator already supports limited transactional banking services through its MTN Mobile Money service.
As it stands, MTN or any other fintech which wants to offer these types of services without a banking licence must work through a licenced bank as a sponsor. For MoMo, MTN uses African Bank.reported that the SARB was working to enable non-banking entities like fintechs to gain direct access to the core clearing and settlements system.
MTN South Africa chief fintech officer Kagiso Mothibi confirmed to Business Times that fintechs will be given an opportunity to participate in the banking system following an ongoing review of the payments system.The SARB is currently developing frameworks to authorise fintechs and other non-banking entities to access the national payment system directly.
Mothibi said that bypassing a traditional banking partner would allow MTN to exercise much more control over the future of its banking services.MTN has ambitious plans to make its MoMo service a true low-cost alternative to traditional banking accounts.
Fintech Mobile Money Payments System South African Reserve Bank MTN
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
South Africa: Yaz Plus Birth Control Pills Recalled in South Africa Over Packaging ErrorA serious packaging error has led to an immediate recall of a specific batch of Yaz Plus birth control pills in South Africa.
Read more »
MTN signs MOU with China Telecom and Huawei – What it means for South AfricaThe focus of the MOU was on unlocking new business opportunities for MTN and bringing enhanced technologies to the South African market.
Read more »
MTN South Africa Partners with China Telecom and Huawei to Advance Digital TransformationMTN South Africa, China Telecom, and Huawei have signed a memorandum of understanding to boost digital transformation and connectivity in Africa. This strategic partnership will enhance MTN's ICT, 5G, Cloud, IoT, and AI offerings.
Read more »
How Huawei is helping MTN South Africa achieve its strategic visionAt Africa Tech Festival 2024, we sat down with MTN SA's Calvin Govender to find out what role Huawei is playing in its digital solutions.
Read more »
MTN drops cloud gaming bomb on South Africa: “R79 for hundreds of games”MTN has dropped a bombshell as it launches its own cloud gaming platform for just R80. Play Spider-Man, Elden Ring and more on your device.
Read more »
MTN South Africa to Increase Prices in 2025MTN South Africa has announced upcoming price increases for its products and services, effective February 1, 2025. The increases will affect various plans and services, including contract subscriptions, out-of-bundle voice rates, USSD services, and itemized billing.
Read more »