MTN Nigeria recorded a 39.3% drop in fintech users for the first six months of 2023, bringing the number of users to 7 million by the end of June.
This information was provided by the corporation in its just-released H1 2023 financial results.
MTN claimed that 3.1 million of its 7 million fintech customers, or 44% of all its fintech customers, use the MoMo wallet.
MTN reported that its fintech income increased by 7.8% despite the drop in client volume. For the first half of this year, it generated N43.6 billion in fintech revenue, up from N40.4 billion during the same period last year.
According to MTN’s Chief Executive Officer, Mr. Karl Toriola, the company’s fintech business performed poorly during the evaluation period for this reason:
“The repercussions of the cash shortages on over-the-counter transactions during Q1 were felt by our fintech user base. Our active user base decreased by 39.3% YoY to 7.0 million, with about 3.1 million of those users having active MoMo PSB wallets.”
Toriola claimed that despite this, the business currently has 227,000 MoMo agents who are bringing its services closer to its clients throughout Nigeria. He said that the business had added 36,000 merchants to its ecosystem.
According to Toriola, MTN continues to put structures in place to enable the execution of its development strategy and scale the fintech ecosystem in accordance with our Ambition 2025 vision, and the fintech business remains a top priority for the company.
“We reinforced our control systems, finished reopening the NIBSS interface for both inbound and outgoing transfers, and launched the MoMo app’s foundational version during H1. The ecosystem gained traction as the amount of fintech transactions increased by 67.1% YoY.”
He continued by saying that they are currently gearing up for the launch of our super app with a variety of features for customers.
Meanwhile, MTN’s digital revenue increased by 49.9% during the time under review. The company asserts that the revenue from content VAS and rich media services made this possible.
According to Toriola, the adoption of digital products and the growth of the active base, which increased by 56.6% to 14 million users, also contributed to the increase in digital revenue.
“In H1, we expanded our portfolio of rich media offerings by offering Apple Music and Amazon Prime Video to our clients.”
With the addition of more than 2 million members, Ayoba, our instant messaging network, continued to grow, reaching 7.2 million monthly active users.
