Aka Ekene, PBA Journalism MenteeHighlights
– MTN Nigeria’s MoMo PSB recorded a 1.2 million increase in active wallets in Q1, bringing the total to 3.2 million.
– The company expanded its agent network to approximately 264,000 in the same period.
– Fintech revenue increased by 8.6% in Q1, led by core fintech services and digital revenue growth.
MTN Nigeria’s payment service subsidiary, MoMo PSB, has reported an impressive 1.2 million increase in active wallet users in the first quarter of 2023.
The increase brought the telecom company’s fintech wallets to 3.2 million.
Additionally, the company has expanded its agent network from 40,000 to 264,000 in the period under review.
However, the company’s fintech revenue was negatively impacted by the cash shortage experienced in the economy during the first quarter of this year.
MTN Nigeria’s Q1 financial statement revealed that the growth in active wallets significantly boosted its fintech business during the quarter. The statement also indicated that MoMo users accounted for 43.2% of the company’s fintech customers. MTN Nigeria attributed the increase in wallets to the reopening of the Nigerian Interbank Settlement System (NIBSS) interface for inbound and outbound transfers. This enabled the company to accelerate full commercial activities and grow active wallets.
Despite these achievements, the company acknowledged that its fintech business was adversely affected by cash shortages during the period, which slowed over-the-counter transactions, resulting in a 31.1% reduction in its total fintech users to 7.4 million.
Fintech Revenue Growth
MTN Nigeria’s CEO, Karl Toriola, commented on the company’s fintech business performance for the quarter, revealing that its fintech revenue increased by 8.6% in Q1. He attributed this growth to the revenue generated from the company’s core fintech services, including wallet and super-agent businesses, which rose by 63.8%. However, the cash shortages impacted the growth of Xtratime, the company’s airtime advance product, which grew by 5.3%.
Toriola further revealed that the company’s digital revenue grew by 41.2% during the quarter, as the adoption of its digital products continues to increase, supported by user journey optimization and the growth of the active base, which increased by 58.4% to 11.7 million. The revenue growth was primarily driven by rich media services, supported by mobile advertising and content VAS. The company also expanded its rich media services portfolio through partnerships with Amazon and Apple to bring Amazon Prime Video and Apple Music, respectively, to its customers.
Outlook
Despite the economic challenges experienced during the quarter, Toriola expressed optimism about the company’s prospects in the fintech industry. He noted that MTN Nigeria was well-positioned to drive the growth of active wallets and merchant ecosystems with consumer education and commercial activities. Additionally, MoMo PSB would leverage its extensive agent network to take its services closer to its customers. As a Payment Service Bank (PSB), MoMo PSB can collect deposits and offer savings accounts to its consumers, including individuals and small enterprises, and facilitate cross-border transfers through all of Nigeria’s available methods.
Conclusion
MTN Nigeria’s MoMo PSB achieved impressive growth in its active wallet users and agent network during the first quarter of 2023. Despite the challenges posed by cash shortages, the company’s fintech revenue increased, driven by growth in its core fintech services and digital products. MTN Nigeria’s prospects in the fintech industry remain strong, supported by its PSB license and extensive agent network.
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