MTN enters payments market with MoMo Pay targeting cash-heavy informal sector
- MTN South Africa has introduced MoMo Pay, targeting the informal payments market.
- 95% of transactions in South Africa’s informal sector are still cash-based, leading to financial exclusion.
- MoMo Pay allows merchants to accept payments via QR code and has a minimal fee of 0.5%.
The launch of MoMo Pay by MTN is a significant step towards financial inclusion for informal traders in South Africa. By addressing the barriers to entry and providing essential financial services, MTN not only enhances economic participation but also empowers communities. This initiative could reshape the landscape of digital payments in the informal sector, but it will be crucial to monitor its adoption and impact on local economies.
