MTN Nigeria said that its mobile money subsidiary, MTN Momo, recorded a 29.4% decline in active wallet users as of Q3 2022, bringing total active wallets to 1.8 million.
The company disclosed this in its 9-month financial results for the period that ended September 30, 2022.
The report, however, showed that registered MoMo wallets increased by more than two times to 9.9 million in Q3, demonstrating the underlying momentum in the ecosystem.
More details on MTN MoMo performance: Giving details of its fintech business performance for the period, MTN said:
“Since the commercial launch of our MoMo Payment Service Bank (PSB) operations in May 2022, we have focused on building our fintech ecosystem and executing its growth strategy. Our active fintech users at the end of September 2022 were 11.2 million, of which 1.8 million are active MoMo wallets, down 29.4% in Q3.
“Fintech revenue increased by 21.9%, and growth was broad-based across Xtratime (our airtime lending product, up 20.6%) and core fintech services (wallet and agency business, up 232.0%).”
“In addition, we expanded our mobile money (MoMo) agent network by adding over 21k active agents in Q3, bringing the total number to approximately 188k. The agent network continued to play a pivotal role in our MoMo ecosystem and helped to drive growth in the total volume of transactions by 112.2% YoY.
“Overall, MoMo PSB continues to make steady progress in its operations. Our current focus is to grow the user base and scale basic services, targeting the sizable unbanked segment in the country. Over time, we will leverage our market-leading distribution to evolve the mix towards more advanced services across our fintech verticals, in line with our Ambition 2025 strategy.
“Digital revenue grew by 68.4% as penetration of our digital products continues to deepen, driven by user journey optimisation and increased usage from our active base. Rich Media, Mobile Advertising and Content VAS drove revenue growth.”
MTN continues to expand MoMo: The company said it is expanding the mobile money business as it deploys more agents while expanding its coverage to reach many unbanked and underbanked Nigerians.
News continues after this ad
In the third quarter of this year, the company added over 21, 000 active agents, bringing the total number to approximately 188,000.