MTN Nigeria’s Fintech Revenue Jumps 57.3 Percent in 2021 FY

Revenue from MTN Nigeria Communications Plc’s fintech unit rose by an astonishing 57.3 percent on the back of Xtratime product and broader adoption of the company’s fintech services in 2021.

MTN MoMo agent network grew by 374,000 or 94.8 percent to 770,000 in the 2021 financial year. This increase resulted in a 167 percent jump in transaction volume to 137.5 million from an active user base of 9.4 million.

The telecommunications giant disclosed in its audited financial statements released on Friday and obtained by Investors King.

According to MTN Nigeria, the recent approval in principle obtained for its MoMo Payment Service Bank (PSB) will allow the company to expand its service offerings and scale its fintech business, deepening financial inclusion and enhancing the company’s overall growth.

Commenting on the company’s Fintech Busines, Karl Toriola, CEO, MTN Nigeria, said “Our fintech business continued to gain traction with approximately 770k registered mobile money (MoMo) agents and active users more than doubling to 9.4 million. This provides a solid foundation on which to launch the MoMo Payment Service Bank (PSB), for which we have received Approval in Principle. The MoMo PSB will provide a powerful platform to drive digital and financial inclusion in Nigeria. In recognition of our progress in the fintech space, we received a US$500,000 grant from the African Development Bank to fund research on financial inclusion for women.”

The company’s digital adoption continues to grow as customers use more digital products and services, a trend accelerated by COVID-19.

In 2021, MTN Nigeria’s digital revenue rose by 61.2 percent, just as the active user base grew and penetration of the company’s digital products deepened. The active user base rose by 162.1 percent to 7.5 million, led by Ayoba – our instant messaging platform – with approximately 3.8 million active users, up 172.9 percent.