MTN Nigeria officially launched its mobile money – Yello Digital Financial Services Limited (YDFS), otherwise called MoMo Agents, on the 29th of August, 2019, at Abuja.
Yello Digital Financial Services Limited (YDFS) is a subsidiary of MTN operating with a license from the Central Bank of Nigeria since July 2019 to offer financial services to enhance financial inclusion.
YDFS director Usoro Usoro said that the introduction of mobile money services is to help mobile phone users make payments and transfer money easily.
Nigeria has an enormous population in Africa, hence serving as MTNs largest market.
Recall that MTN is Nigeria’s largest telecommunication network with over 90 million users.
Highlight on the Activities of MoMo Agents
You will find below how MoMo agents operate;
- Customers can only transfer the lowest amount of one hundred naira and the highest of one hundred thousand naira. The limit of some agents is fifty thousand naira.
- Every transfer incurs a 50 naira charge to the agents paying and a 50 naira charge to the sender, making it a total of 100 naira.
- To begin with, customers will have to send a free text and get an immediate reply displaying information about nearby agents.
- Upon selecting an agent, the customer will transfer the desired fund to the agent and then receive a code to give the receiver access to the fund.
- The receiver will have to take the code to a nearby agent to collect the transferred money.
- The receipt expires within 30 days, which means that the receiver has to claim the money within the period.
Mobile Money Scheme in Other African Countries
Already Kenya is the highest African country with the most successful mobile money services. It has lifted 194,000 of Kenya’s population out of poverty.
Ghana, however, has the most successful MTN MoMo service operations in West Africa. Ghana describes the mobile money services by MTN as an inexpensive, speedy, safe, and convenient way of recharging credit, transferring money, and paying bills by phone or online.
You do not need to travel long distances to the bank and stand in long queues because you can make your transactions with your phone. MTN partners with many banks to offer their services.
Mobile Money Market in Nigeria
Despite the population of Nigeria of over 200 million people, the majority of the people are unbanked, especially those in the rural areas.
About 65% of Nigeria’s population is in the informal sector. The mobile money services will also reach these people, encouraging the Central Bank of Nigeria’s financial inclusion policy.
Nigeria has 21 certified mobile money agents, but Paga, established in 2009, is the market leader.
Even though Paga has been with about twenty-three thousand agents and eight million users, MTN can use its goodwill and customer relation to reach as many unbanked populations as possible.
By 2025, market experts forecast that the mobile money market will mature to $73bn, making 25.6% CAGR as the Central Bank of Nigeria issues out licenses to mobile money agencies.
MTN and Flutterwave Mobile Money Partnership
On the 9th of September, 2021, MTN had announced its partnership with Flutterwave – a top payment technology company in Africa.
The partnership enables mobile money users in Zambia, Cameroon, Uganda, Rwanda, and Cote d’Ivoire to receive money from the MoMo agent.
From the report of MTN, MoMo agents in Nigeria are up to 581,514 and 48.9 million users as of June ending 2021.
GSMA forecasted that by 2025, Africa would reach a 50% subscription and a global record of 45% mobile subscribers.
In a comment, the CEO and founder of Fluterwave, Olugbenga “GB” Agboola, said that seeing the recent and potential growth in mobile money across Africa, partnering with MTN is to support the growth process.
Is there MTN mobile money in Nigeria?
MTN mobile money, which allows you to transfer money into your e-wallet account, collaborates with many banks in Nigeria.
When did MTN Nigeria officially launch a mobile money agent?
On the 29th of August, 2021, MTN officially launched its mobile money agents – MoMo agents. The agency allows users to transfer money, receive cash, and pay bills of all kinds.
When was MTN mobile money introduced?
MTN first introduced its mobile money, MoMo Agent, in the year 2009 in Ghana. Ever since the introduction of MoMo Agents, it has been spreading its services across the continent.
When did mobile money start in Nigeria?
Mobile money first started in Nigeria in the year 2009 with the Paga mobile money services.
As MTNs MoMo Agents expands its base to the 36 states of the federation, they also expect to reach out to 500,000 agents.
Just as Dr. Olayinka David-West rightly said, the mobile money industry needs patient capital as it is long term venture.
In terms of distribution, MoMo Agent should make a thorough observation to reach out to the target audience, especially the unbanked population.
Also, they should put other strategies like good collaboration with relevant companies in place to ensure profitability and customer satisfaction.