MTN SA has pulled the plug on its mobile money service because of the lack of commercial viability in a country where about three-quarters of the population had bank accounts.
This comes four months after Vodacom closed a similar product called M-Pesa in SA, which had been meant to duplicate the uptake of Kenya’s similarly named, but more successful mobile money transfer service.
Mobile money services that enable customers to transfer funds using their phones are popular in other parts of Africa, particularly where people have limited access to traditional bank accounts.
“The operating cost of providing a mobile money platform has become prohibitive,” said MTN SA chief consumer officer Larry Annetts. However, he said the company’s decision to shelve its mobile money service did not signify a complete exit from financial services.
MTN said its decision did not mean 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.”
“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,” said Annetts.
MTN SA launched its mobile money platform in 2012, and partnered with Pick n Pay and Boxer to offer its money remittance platform. It said the platform attracted over 2-million registered customers.
Mobile money services such as M-Pesa and MTN Mobile Money have failed in SA partly because the local banking sector is more developed than it is elsewhere on the continent.
STUPIDITY is when you don’t have a bicycle and you give your last penny to your pastor to buy a jet.
IDIOCY is when you refuse to take your very sick child to the hospital because your pastor said you should not do so, yet that same pastor secretly runs to USA for medical attention each time he has a headache.
IGNORANCE is when you believe it when your pastor tells you not to live a worldly life, yet he enjoys all the best things in the world; the fine houses, cars, jets, screwing around etc, while you are waiting till you get to heaven to enjoy your own….
For real these pastors mislead people most of the time. Most people cant take care of their parents becoz the pastors keeps them so busy -requiring money all the time. your blessing lies with respecting and honoring your parents.
What have Pastors to do with MTN closing their money transfer service?
kinda wondering azwel
@Hamoono, They don’t understand the article. May be the question we should ask is, does it affect MTN Zambia mobile services? otherwise, it helped to reduce the cost of sending money through the Post office. Our rural folks would also collect money from their villages without traveling to the Boma. Saving them both on time and money. Not mentioning the risk of traveling in those unroad worthy Canters to the boma. May be a review of the service and putting in new strategies. Zambia has been too much of the cash economy.
Zampost is hell on earth not because of costs but arrogant stuff. They behave like they are doing you a favor.