South African mobile operator MTN has debuted a low-cost banking and money transfer service with retail partners that is being billed as a direct challenge to the country’s financial incumbents.

The operator is offering a banking service that has no monthly account fees, transaction charges or minimum monthly balance.

And working with local retailers Pick n Pay and Boxer Superstores means MTN can offer a P2P mobile money service like M-Pesa where users deposit and pick up cash through its partners’ outlets.

MTN and Pick n Pay are offering the new service, which is called Mobile Money, via a co-branded SIM card, according to Techcentral.

“This is the first time there will be a bank account with no monthly fees, no fees for swiping, and no need to have a minimum monthly balance. This is pretty compelling and has the potential to get the 8 million unbanked people in South Africa, more so than any other product,” said MTN South Africa CEO Zunaid Bulbulia.

Users can also purchase a Mobile Money Visa card with which they can make purchases at retail outlets as well as ATM withdrawals.