MTN MoMo Processes US$2.1B in Cross-Border Remittances and Eyes a Borderless African Payments System
Overview: MTN’s mobile money arm, MoMo, has processed more than US$2.1 billion in cross-border remittances across multiple African markets in the first half of 2025. The milestone underscores MoMo’s push to simplify international payments on the continent and expand financial inclusion for millions of users.
Why the US$2.1 billion milestone matters
The figure is significant not only for MoMo’s growth metrics, but for what it signals about digital payments in Africa. Lower friction cross-border transfers increase economic activity—remittances, trade, and SMEs that rely on fast, reliable payments benefit directly. For telco-backed wallets like MoMo, scale in cross-border flows also unlocks richer services: merchant payments, lending, and expanded developer ecosystems via APIs.
MoMo’s expanding product mix
MoMo is evolving from pure payments into a platform offering a wider range of financial services:
- Microloans & overdrafts: Using mobile data and transaction history for underwriting, MoMo is providing small loans tailored to individuals and micro-businesses.
- Merchant payments: A fast-growing merchant network enables payments for goods and services, boosting everyday usage.
- Open APIs: MoMo OpenAPI allows fintechs and developers to build services on top of MoMo rails, accelerating innovation and integration.
Economic and inclusion impact
Mobile money has a measurable macro impact. Widespread digital payments reduce transaction costs, expand the formal economy, and increase GDP contribution from digital financial services. But reaching this potential requires bringing more people into the financial system—especially feature phone users, women, and rural populations who still face access and literacy barriers.
Current challenges
Despite the growth, several challenges slow progress toward a truly borderless payments experience:
- High cross-border fees: Remittance costs in Africa remain relatively high; lowering fees is key to wider adoption.
- Fragmented rails and regulations: Multiple national systems, different compliance regimes, and limited interoperability make cross-border transfers technically complex.
- Digital inclusion gaps: Feature phones, limited connectivity, and digital literacy constraints exclude many potential users from advanced wallet features.
MoMo’s roadmap to cheaper, simpler cross-border payments
To make cross-border transfers as seamless as local transactions, MoMo is prioritizing:
- Interoperability: Building connections between national wallets and payment rails so funds move seamlessly across borders.
- Low-cost channels: Strengthening support for USSD and feature-phone friendly workflows to include non-smartphone users.
- Expanded financial services: Scaling MSME financing, buy-now-pay-later products, and consumer savings/investment options to deepen engagement.
What this means for consumers and businesses
If MoMo successfully reduces fees and removes friction, consumers would enjoy faster, cheaper ways to support households across borders; small businesses would gain predictable payment rails for regional trade; and developers could build cross-border apps that rely on consistent settlement mechanisms.
MTN MoMo’s US$2.1 billion cross-border remittance milestone in H1 2025 is more than a headline number—it’s a sign that mobile money is maturing into an infrastructure capable of powering cross-border commerce in Africa. The true test will be whether MoMo can tackle fragmentation, cut costs, and extend access to those still left out of the digital economy. If it does, it could help accelerate inclusive growth across the continent.
MTN MoMo, cross-border payments, mobile money Africa, remittances, fintech, financial inclusion, interoperability, USSD, MSME financing
Comments
Post a Comment