MTN scraps mobile money business in South Africa

MTN scraps mobile money business in South Africa

0
0
SHARE
Business News

BUSINESS – South African mobile phone operator MTN Group (MTNJ.J) has pulled the plug on its local mobile money business, saying it was not viable in a country where around three quarters of the population already has a bank account.

However MTN, Africa’s biggest wireless phone group, now joins Vodacom (VODJ.J) in abandoning the service in South Africa.

“The operating costs of providing a mobile money platform has become prohibitive,” MTN said in a statement on Thursday.

Both Safaricom and Vodacom are controlled by Britain’s Vodafone (VOD.L).

MTN said its decision did not mean a complete exit from financial services.

“MTN is still committed to remaining a significant player in the financial services space and we are exploring opportunities in financial services space and other adjacent sectors,” it said.

NO COMMENTS

LEAVE A REPLY