By Alexander Chiejina
MoMo PSB, a subsidiary of MTN Nigeria that offers payment services, said its active wallet users rose by a remarkable 1.2 million in the first quarter of 2023. As a result of the growth, the telecom operator now has 3.2 million fintech wallets.
However, the cash shortage that the economy experienced during the first quarter of this year had a negative effect on the company’s fintech revenue.
The increase in active wallets notably increased MTN Nigeria’s fintech business throughout the quarter, according to the company’s Q1 2023 financial report. Additionally, according to the statement, 43.2 percent of the company’s fintech clients were MoMo users.
The surge in wallets was ascribed by MTN Nigeria to the reopening of the incoming and outbound transfer interface for the Nigerian Interbank Settlement System (NIBSS). Due to this, the business was able to expand active wallets and accelerate full commercial activities.
Despite these successes, the company admitted that cash shortages during the period had a negative impact on its fintech business, slowing over-the-counter transactions and causing a 31.1 percent drop in the number of its total fintech users to 7.4 million.
Karl Toriola, chief executive officer, MTN Nigeria, commenting on the company’s fintech business performance for the quarter, following a revenue increase of 8.6 percent in Q1, credited the expansion to the company’s core fintech services, notably the wallet and super-agent businesses, which saw a 63.8 percent increase in revenue.
However, the company’s airtime advance product, Xtratime, which grew by 5.3 percent, was negatively impacted by the cash shortages.
Toriola also disclosed that the business’s digital revenue surged by 41.2 percent during the quarter as adoption of its digital products grew. This adoption was aided by user journey optimization and the expansion of the active base, which grew by 58.4 percent to 11.7 million users.
Rich media services, together with mobile advertising and content value-added services, were the main drivers of the revenue rise. Through partnerships with Amazon and Apple, the business also widened its portfolio of rich media services, making available to its clients Apple Music and Amazon Prime Video, respectively.
However, the company’s airtime advance product, Xtratime, which grew by 5.3 percent, was negatively impacted by the cash shortages.
During the first quarter of 2023, MTN Nigeria’s MoMo PSB experienced tremendous growth in both its active wallet users and agent network. The company’s fintech revenue climbed despite the difficulties brought on by cash shortages, supported by growth in its core fintech services and digital goods. MTN Nigeria’s chances in the fintech sector are still bright, thanks to its expansive agent network and PSB licence.
