MTN Nigeria’s fintech subsidiary, Mobile Money Payment Service Bank (MoMo PSB), has gained traction and contributed to the country’s financial inclusion push, with transaction volumes hitting 7 million within months of operation.
MoMo PSB formally commenced in operation in May, 2022 following the final approval for a Payment Service Bank (PSB) granted by the Central Bank of Nigeria (CBN).
According to the latest financial inclusion report by Enhancing Financial Innovation & Access (EFInA), about 36 per cent of the adult population (106 million), representing 38 million citizens, do not have access to financial services in Nigeria.
The EFInA data showed that 64 per cent of Nigerian adults were financially served by the end of 2020 — up from 49 per cent in 2018.
Of the 64 per cent, EFInA said only 51 per cent of Nigerian adults have access to formal (regulated) financial services due to offerings from banking, microfinance bank institutions, mobile money, insurance, or pension accounts. By implication, 54 million of the adult population has access to banking services.
MoMo PSB brings
one of the easiest and most convenient ways to bank in Nigeria. Some of its services include the collection of deposits and offering of digital accounts to banked and unbanked populations.
With MoMo, individuals and small businesses will be able to perform cross-border transfers through available methods in the future.
MoMo PSB strengthens the CBN’s financial inclusion drive and ensures penetration among the unbanked and underserved in northern Nigeria and across the country. It promotes financial inclusion among women and youth through its agent banking channels and USSD.
Replicating success stories across African markets, MoMo removes the barriers to entry associated with financial services, including account opening, remittance services, and customer payments.
With MoMo PSB, individuals and agents can accept deposits from customers and small businesses, hold funds in an electronic wallet, invest in interest-bearing federal government and CBN securities and offer saving products.
They can also engage in different local payments, including merchant payments, bill payments.
