MoMo PSB boasts 3.6 million active wallets in Q3, 2023

In Q3 2023, MTN Nigeria’s payment service subsidiary, MoMo PSB, witnessed a remarkable 53.1% year-on-year surge in active wallet users, reaching a substantial 3.6 million users. This robust growth was disclosed in MTN’s Q3 financial statement, underscoring the company’s flourishing presence in the fintech sector.

Comparing the growth quarter-on-quarter, MoMo PSB saw an impressive 16% increase in active wallets, marking a significant upturn from the 3.1 million active wallets recorded in the previous quarter. This expansion in the MoMo wallet user base played a pivotal role in bolstering MTN’s fintech business during the quarter.

MTN reported that MoMo users now constitute a substantial 40.6% of its total fintech customers. However, it’s important to note that the number of active MoMo wallet users, while growing impressively, remains relatively modest compared to the number of registered users. According to the report, as of the end of Q3, there were 27.9 million registered MoMo users, signifying substantial untapped potential for active wallet users.

Furthermore, MTN disclosed that MoMo PSB has significantly expanded its agent network, with over 293,000 agents, marking an impressive year-on-year increase of 55.7%. This extensive agent network has contributed to bringing MoMo’s services closer to the people, facilitating easier access to its financial solutions.

In its efforts to build a robust merchant ecosystem, MoMo PSB reported that it had onboarded a total of 197,000 merchants since commencing its merchant-focused initiatives in March 2023. This signifies a proactive approach to expanding the reach of its financial services and supporting merchants in enhancing their digital payment capabilities.

Karl Toriola, MTN’s CEO, commented on the performance of the company’s fintech business during the quarter. He highlighted the continued progress of the fintech sector, particularly the growth in fintech revenue, which increased by 5.6%. This growth was attributed to the rising adoption of core fintech services, including wallets and MoMo agent businesses.

Toriola also noted that the fintech active user base experienced a decline of 20.4% year-on-year but made a substantial recovery of 27.2% quarter-on-quarter, reaching 8.9 million users. This decline in the year-on-year figures was attributed to a slowdown in activity on the over-the-top (OTC) platform in the initial quarter due to cash shortages. However, the concerted efforts to rebuild the user base resulted in a notable 25.5% growth in OTC users compared to Q1 2023.

Additionally, MTN’s digital revenue for Q3 exhibited impressive growth, surging by 55.4%. This growth was primarily driven by increased adoption of its digital products and the expansion of the active user base, which expanded by a remarkable 67% to reach 16.1 million.

MTN’s instant messaging platform, Ayoba, continued its steady growth trajectory with an addition of over 2.8 million users during the quarter. This expansion brought the number of active users to approximately 8 million, underscoring the platform’s enduring popularity and strong user engagement.

Karl Toriola emphasized that MTN is well-positioned to drive the growth of active wallets and merchant ecosystems through targeted consumer education and commercial activities. He also highlighted MoMo PSB’s intention to leverage its extensive agent network to bring its services even closer to customers, fostering accessibility and convenience.

MTN received a Payment Service Bank (PSB) license in the previous year, along with three other mobile network operators—Airtel (Smart Cash PSB), Glo (Moneymaster PSB), and 9mobile (9PSB). This collective move aimed to deepen financial inclusion in Nigeria by expanding the range of financial services available to a broader segment of the population.

As a PSB, MoMo PSB possesses the capability to collect deposits and offer savings accounts to consumers, including individuals and small enterprises. Moreover, it can facilitate cross-border transfers through various available methods in Nigeria, further enhancing financial accessibility and convenience for its users.