MTN has confirmed that it will relaunch its Mobile Money (MoMo) service in South Africa.
In the group’s financial results for the year ended December 2018 published on Thursday (7 March), MTN said that the launch of its Mobile Money offering in the coming months – alongside new media offerings – is expected to drive growth in digital revenue.
MTN launched its mobile money platform in 2012 – attracting over 2 million customers.
However, the company shut down the service in 2016 citing ‘çommercial viability’.
“The operating costs of providing a mobile money platform have become prohibitive. The decision by MTN SA to shelve its mobile money service does not signify an exit from financial services,” said MTN at the time.
“MTN is committed to remaining a significant player in the financial services space.” The network said it will introduce new financial services products in the near future.
Despite the service’s original failure in South Africa it has been popular outside of the country and by year-end MTN had 27 million active MoMo users in 14 markets.