According to the Independent Communications Authority of South Africa's new report, titled The State of the ICT Sector in SA 2019, South Africa's smartphone penetration has nearly doubled in the last two years and is now sitting at over 80%.

"It is stats like this that support MTN's continued commitment to make a positive social impact and unlock economic transformation by harnessing the power of technology," says Felix Kamenga, chief officer of MTN South Africa mobile financial services.

"At the heart of our renewed venture into the improved mobile money space in South Africa is our passion to provide value-added services that meet our customers' needs. As part of this, a major focus area is to provide our customers with secure, reliable and accessible financial services," adds Kamenga. 

"The local market is characterised by significant population growth, a youthful demographic and relatively high levels of data and digital adoption. We believe that all these factors — coupled with the unrivalled quality and coverage of our network— bodes well for us to offer a viable mobile money service in South Africa," says Kamenga. 

MoMo is available to all South African citizens, regardless of the network they are using. The platform, which is powered by UBank, enables customers to use their mobile phones — and other devices — to send and receive money, purchase airtime and prepaid electricity, as well as pay for their municipal bills and DSTV subscriptions.

This, according to MTN, makes MoMo appealing to even the banked community who might not enjoy the burden of withdrawing cash from their accounts. MTN has also reported that it will be adding well-known South African retail brands to the platform from May onwards.

MTN MoMo offers two types of accounts: a Yello account and a Yello Plus account. On the Yello account, daily cash transactions are limited to R3 500. The total daily amount for a full range of transactions is R10 000, while the monthly account limit is capped at R20 000.

On Yello Plus, daily cash transactions are limited to R10 000. The total daily amount for a full range of transactions is R20 000, while the monthly account limit is capped at R40 000.

MoMo customers can cash in funds at MTN-branded stores, UBank branches or through their own banks via electronic funds transfers (EFTs). Similarly, they can use these options to cash out funds.

According to MTN, customers have three options to register for MoMo. They can:
  • self-register via USSD by dialling *120*151# and follow the voice prompts
  • download the free MoMo app on the Google Play Store and self-register, or
  • register directly with a MoMo agent at any MTN-branded store.
MTN is awaiting final approval from Apple to register the MoMo app on the Apple App Store. The brand indicates that this is expected to be finalised within the next couple of weeks.

Kamenga says that providing customers with peace of mind and the confidence that they can transact safely was a top priority when designing the MoMo platform. "The beauty of MoMo is that we have struck a balance between building world-class safety and security measures without compromising the ease of use and simplicity of the platform," he says.

MoMo uses biometrics like voice and facial recognition to authenticate users. The details of MoMo customers are cross-checked with the population database at the department of home affairs. In addition to this, the user's funds are also protected by a PIN. If the MoMo customer loses their phone, their money is still safe.

MoMo uses the Ericsson Wallet Platform, which aims to provide MTN with a flexible, reliable and efficient solution, systems integration, operational support and solution development.

"Another very important part of this journey for us was to ensure that we contribute positively towards enabling job creation," says Kamenga. "MoMo currently has about 50 dedicated agents that are based at selected MTN-branded stores, and we continue to recruit. We expect to have around 400 agents in all stores by the beginning of the second quarter of this year." 

In addition to store-based agents, MoMo will have non-store-based agents that will help to facilitate registrations and cash-in and cash-out transactions across the country. MTN says that agents are carefully vetted and receive extensive training to ensure that they are able to deliver exceptional service to MoMo customers.

"We look forward to bring a range of other services to MoMo customers in the near future including loyalty rewards, a savings account and loans. We are on a continued journey to bridge the digital divide because we believe that everyone deserves the benefits of modern, connected life," concludes Kamenga.

For more information, visit www.wegotu.mtn.co.za. You can also follow MTN on Facebook, Twitter or on Instagram.