MTN Shuts Down Mobile Money Service in South Africa, Plans to Start Selling Insurance
In a country where more than 75 percent of people have bank accounts, South Africa-based mobile phone operator MTN Group has pulled the plug on its mobile money service there, saying it’s not viable.
In a similar move, Vodacom stopped offering mobile money service M-Pesa in South Africa in May, citing lack of demand and South Africa’s advanced banking sector, My Broadband reported.
MTN’s announcement illustrates how difficult it is to crack mobile payments in South Africa’s financial services market, according to Quartz.
MTN’s mobile money subscribers grew by 23.3 percent to 7 million continent wide in 2015, according to the company’s interim results. MTN Group has allotted more funds to market mobile money in Cameroon and Ivory Coast.