Mobile telecommunication giant, MTN intends to purchase a banking licence immediately after the South African Reserve Bank (SARB) opens its national payment system to financial technology companies and non-banking entities.

MTN currently has a banking licence in Nigeria with its MoMo Payment Service Bank.

MoMo is among Nigeria's largest Payment Service Banks (PSBs), providing payment solutions and money transfer services to both individuals and businesses. Customers can use their phones to access digital wallets that store their funds.

The PSB targets small and informal businesses like kiosks and the low-income consumer market, which still depend heavily on cash.

According to reports, MoMo is one of the several fintech firms in Nigeria's 774 local government areas.

It reportedly participated in SARB’s working group to develop guidelines to enable direct participation in core banking activities. The guidelines are essential to balance innovation with risks associated with an open financial system.

MoMo integrates new features The company plans to make MoMo a low-cost alternative to core banking and traditional bank accounts.

Available data shows that as of 2023, MoMo boasts 5.3 million users in Nigeria, surpassing its previous year’s record of two million subscribers.