The Central Bank of Nigeria (CBN) has approved a mobile banking license for South African telecom MTN, allowing it to operate as Momo Payment Service Bank Limited (Momo PSB), according to a Monday (April 11) Ripples Nigeria report citing a statement from the bank signed by company secretary Uro Ukpanah.
The MTN statement doesn’t provide a date for the mobile banking license to take effect.
“The date of commencement will be communicated to the CBN in accordance with its requirements,” according to the statement.
In the guidelines published on its website, CBN said the key objective of issuing PSB licenses is “[t]o enhance financial inclusion in rural areas by increasing access to deposit products and payment/remittance services to small businesses, low-income households and other entities through high-volume, low-value transactions in a secured technology-driven environment.”
Nigeria is MTN’s largest market, and the new license is expected to give the company access to a market of millions of financial services customers as it competes with traditional banks and point of sale (POS) operators. Last year saw MTN’s mobile money transactions rise 57% to $24 billion.
Read more: Telecom MTN Looks for Investors in FinTech Unit
In March, MTN said it was looking for minority investors for its FinTech unit after separating it from its traditional business to capitalize on the division’s growth.
MTN — the largest mobile phone company in Africa — is set to finish the separation by the end of June, with a similar project involving its fiber network division set to conclude next year.
“We will be working on bringing strategic equity partners into the FinTech business during the second part of the year that can help us accelerate the growth of this business,” CEO Ralph Mupita said at the time.
Earlier this year, PYMNTS named MTN’s Ayoba — considered Africa’s first super app — as one of three telco-driven apps to watch in 2022.
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