- MTN has partnered with the International Finance Corporation which has dedicated R28 million to its Mobile Money service.
- The investment will be used to recruit, enrol, and train 10,000 Mobile Money agents.
- These agent businesses allow MTN clients cash-in and cash-out services without using an ATM or Point of Sale machine.
- In turn, the agents receive a commission dependent on the value of each individual transaction.
- For more articles, go to www.BusinessInsider.co.za.
MTN South Africa is partnering with the International Finance Corporation (IFC) to unlock $2 million (R28 million) in funding which will be used to recruit, enrol, and train Mobile Money (MoMo) agents.
MTN's MoMo service, which allows subscribers to receive and send money via their cellphones, was launched in 2020 and has since grown to include more than two million active users in South Africa alone. The telecommunications group recently suggested that its “undervalued” MoMo platform would relaunch as a separate business.
The partnership with the IFC, which is part of the World Bank Group, aims to grow the MoMo service while creating employment opportunities, especially among women and the youth. The R28 million project is expected to hire 10,000 agents in 2021.
The newly hired agents will be managed by a team of Trade Development Representatives created by MTN and the IFC. Agents will be trained in compliance regulations such as Anti-Money Laundering and Know Your Customer.
"IFC has assisted with funding and advisory services in several other Fintech operations in Africa and this partnership provides the opportunity to bridge the digital divide and broaden financial inclusion in South Africa," says Felix Kamenga, chief officer for mobile financial services at MTN South Africa.
MoMo agents are expected to carry out cash withdrawals for customers without an ATM card or Point of Sale (POS) machines. This is a popular programme in Nigeria, whereby agents with existing businesses operate Cash2cash accounts which allow MTN clients to make cardless withdrawals. The agents earn a commission based on the transaction's value.
"The growth and development of 10,000 MoMo agent businesses across the country not only benefits local communities and economies, but has the ripple effect of many more unbanked and underbanked South Africans having an opportunity to manage their money digitally, wherever they are," explains Kamenga.
The announcement comes just one month after MTN revealed a partnership with Pick n Pay which allows MoMo subscribers to withdraw and deposit cash at over 1,600 stores around the country.
MTN signed up more than 280,000 MoMo agents in its biggest market, Nigeria, in 2020 alone.
Businesses looking to join MTN’s MoMo merchant and agency network can email email@example.com for more information.
(Compiled by Luke Daniel)
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