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MTN and Ericsson’s Decade-Long Commitment to Revolutionize Mobile Financial Services in Africa

In a groundbreaking collaboration that spans over a decade, MTN and Ericsson are poised to reshape the landscape of mobile financial services in Africa. This strategic alliance, extending five years after the introduction of MTN’s mobile money wallet, focuses on leveraging technology to enhance financial inclusion across the continent. Anchored by MTN’s Mobile Money (MoMo) service, powered by the Ericsson Wallet Platform, the partnership aims to cater to diverse users, from first-timers to advanced business applications.

Pioneering Financial Inclusion: A Decade-Long Partnership

The journey began in 2014 when Ericsson assumed the responsibility of managing and optimizing MTN Nigeria’s network infrastructure. Fast forward to 2019, and the collaboration extended for five more years, propelling Managed Services for Mobile Money and introducing innovative products and services across 13 countries in the Middle East and Africa.

Empowering the Unbanked: Ericsson’s Vision

Michael Wallis-Brown, Head of Mobile Financial Services at Ericsson, envisions this collaboration as a gateway for individuals without traditional bank accounts to enter the financial realm. The partnership not only targets financial inclusion but also addresses the gender gap, providing women access to financial services. The overarching goal is to foster digital inclusion and provide advanced users access to a spectrum of complex financial services.

Ericsson Wallet Platform: Catalyst for Secure Financial Transactions

The cornerstone of this collaboration is the Ericsson Wallet Platform, seamlessly integrated into MTN’s African operations. This platform offers secure storage, seamless money transfers, and convenient withdrawal services. It goes beyond basic transactions, processing payments from merchants and utility providers, and delving into financial services such as savings and loans.

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Remarkable Growth of MTN MoMo: A Testament to Innovation

As of Q3 2023, MTN MoMo’s mobile money service boasts an impressive 61.7 million active users, showcasing a substantial increase from the previous quarter. Transaction values have witnessed a remarkable surge, nearly tripling from $76 billion in 2018 to a staggering $204 billion in 2022. The number of transactions has experienced a parallel growth, reaching 12.7 billion in 2022, marking a remarkable 300% increase.

Ericsson Wallet Platform’s Global Impact

The Ericsson Wallet Platform, a linchpin in this collaboration, supports over 400 million registered mobile wallets worldwide. Processing over 2.8 billion transactions monthly, amounting to over $40 billion, this platform has become instrumental for financial institutions and communication service providers globally.

Strategic Alliances for Future Expansion

Aligned with its expansion strategy, MTN’s fintech division, MoMo, valued at $5.2 billion, recently entered a strategic partnership with Mastercard. This move involves Mastercard acquiring a 30% stake, opening the door for potential collaborations with three to four partners. In a parallel development, MoMo Payment Service Bank (PSB) forged a partnership with Saana Capital, facilitating bill payments and seamless transfers across Africa.

As MTN and Ericsson embark on this transformative journey, their commitment to innovation and financial inclusion paves the way for a future where mobile financial services empower millions across Africa.

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