MTN, retailers launch mobile bank in SA

MTN, retailers launch mobile bank in SA

26 JUN 2014

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.

Author

Richard Handford

Richard is the editor of Mobile World Live’s money channel and a contributor to the daily news service. He is an experienced technology and business journalist who previously worked as a freelancer for many publications over the last decade including...

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