MTN drops mobile money service

MTN South Africa announced the decommissioning of its mobile money service, Mobile Money, due to a lack of commercial viability. However, the cellular network revealed that a new financial product will be launched soon.

Originally launched in 2012, Mobile Money has been regularly improved and updated, attracting more than two million registered customers. However, Larry Annetts, chief consumer officer of MTN South Africa, noted: “The operating costs of providing a mobile money platform has become prohibitive. The decision by MTN SA to shelve its mobile money service does not signify a complete exit from financial services. MTN is still committed to remaining a significant player in the financial services space and we are exploring opportunities in financial services space and other adjacent sectors.”

The company reassured users that it is working with mobile money partners to ensure that customers are not adversely affected by this decision.

“MTN remains committed to providing its customers with affordable mobile financial services. To that end, MTN will be introducing innovative and customised financial services products in the near future as it strives to lead the delivery of a bold, new digital world to its customers,” added the mobile network.