MTN Nigeria, the country’s largest telecommunications company, has applied for Payment Service Solutions Provider (PSSP) and Payment Terminal Service Provider (PTSP) licenses for its fintech subsidiary, MoMo PSB. This initiative reflects the company’s growing ambition to expand its footprint in the digital payments space.
With the PSSP license, MoMo PSB aims to streamline internal payment processes, reducing reliance on external providers while also catering to the payment needs of merchants and partners. The PTSP license will allow it to enhance its POS offerings by deploying and maintaining terminals, developing applications, and supporting its network of merchants and agents.
These moves place MTN’s fintech subsidiary in direct competition with established players in the digital payment and POS markets, intensifying competition with platforms like Interswitch, Flutterwave, Moniepoint, and Opay. MoMo PSB has already established a significant presence, boasting over 5.5 million active digital wallets and a robust network of 302,800 agents and merchants as of Q2 2024.
MTN’s foray into fintech began in 2018 with the launch of Yello Digital Financial Services, which initially operated under a super-agent license, facilitating basic financial transactions. In 2022, the introduction of MoMo PSB marked a significant step forward, although its current PSB license limits its service offerings.
The application for these additional licenses represents a critical move in MTN’s strategy to build a more comprehensive digital financial ecosystem. Despite the expansion plans, the company has not commented publicly on the ongoing applications.
