JOHANNESBURG/LAGOS – MTN Group is accelerating its transformation from a telecommunications operator into a major financial services player, positioning its fast-growing mobile money business to capture a larger share of Africa’s payments, lending and digital commerce markets.
According to reporting by Business Insider Africa, the telecommunications giant is finalising the separation of its fintech operations in Nigeria and Uganda as part of a broader strategy to attract strategic investors, unlock shareholder value and expand into higher-margin financial services, including direct lending.
The move comes as MTN’s mobile money platform, MoMo, processed more than $500 billion in transactions during 2025, underlining the growing importance of fintech within the group’s long-term growth strategy.
Strategic Investor Drive
MTN is completing the structural separation of its Nigerian and Ugandan fintech businesses, a critical step in facilitating investment from global payments giant Mastercard and other potential strategic partners.
Group Chief Executive Officer Ralph Mupita said the process requires careful execution to preserve value as the company restructures its fintech assets.
“The separations are complex as we have to minimise value leakage,” Mupita said.
While market speculation has centred on a possible public listing, Mupita indicated that MTN remains focused on strategic partnerships rather than pursuing an immediate IPO.
“On fintech, we are open to minority shareholding all the way up to 30%; we are not driven by IPO timelines,” he said.
The restructuring is widely viewed as part of a broader effort to unlock the value of MTN’s fintech operations, which many analysts believe are significantly undervalued within the group’s telecommunications business.
Nigeria at the Centre of Expansion Strategy
Nigeria has emerged as the focal point of MTN’s fintech ambitions due to its large population, extensive informal economy and significant financing gaps among small businesses.
The company sees substantial growth opportunities in a market where millions remain underserved by traditional banking institutions and where demand for digital financial services continues to rise.
Business Insider Africa reports that Nigeria’s micro, small and medium-sized enterprises (MSMEs) face an estimated financing gap of approximately $236 billion, creating a significant opportunity for alternative lenders and digital financial platforms.
To strengthen its position, MTN has applied for additional licences through its subsidiary, MoMo Payment Service Bank (PSB), which would allow it to expand payment processing, merchant services and point-of-sale solutions.
The company is also seeking greater control over the infrastructure that facilitates digital payments across its network.
Lending Becomes the Next Growth Frontier
Perhaps the most significant shift in MTN’s strategy is its intention to move beyond facilitating loans through third parties and eventually lend directly to customers where regulations permit.
Group Fintech Chief Executive Officer Serigne Dioum said the company is seeking a greater role across the credit value chain.
“We’ve expanded access to credit for more people, but we also want to move further up the lending value chain,” Dioum said.
“Where appropriate, we will seek licences that allow us not only to facilitate loans but also to lend directly to customers and deploy our own balance sheet.”
The move could fundamentally reshape MTN’s fintech business model.
While mobile money platforms traditionally generate income from transaction fees, merchant payments and remittance services, direct lending offers the prospect of significantly higher revenues, albeit with increased regulatory obligations and credit risk exposure.
Industry analysts note that direct lending could become a major profit driver given the limited access to formal credit across much of Africa.
According to Dioum, only between 4% and 5% of adults across the continent currently have access to formal credit facilities.
Building a Financial Infrastructure Business
MTN’s fintech operations have evolved into one of Africa’s largest digital finance ecosystems.
In 2025, MoMo processed approximately $500.3 billion in transaction value while handling 23.3 billion transactions and serving 69.5 million monthly active users.
The platform’s rapid growth reflects broader trends across Africa, where mobile money has become a critical component of financial inclusion and economic activity.
As traditional banking infrastructure remains limited in many regions, telecom-led financial services are increasingly providing consumers and businesses with access to payments, savings, remittances and credit products.
Global investors have taken notice.
MTN’s partnership with Mastercard, first announced in 2023, is widely regarded as part of a broader international race to gain exposure to Africa’s expanding digital payments sector.
The company is also collaborating with Ant Group’s Alipay platform to strengthen its technology infrastructure and enhance merchant services.
Competition Intensifies
MTN’s expansion comes amid intensifying competition from banks, fintech start-ups, global payments companies and rival telecommunications operators.
Airtel Africa, for example, continues to develop its Airtel Money platform and has previously explored a public listing that analysts believe could value the business at several billion dollars.
The growing rivalry highlights the strategic importance of Africa’s digital payments ecosystem, which is increasingly becoming the backbone of commerce across the continent.
Industry observers argue that the battle is no longer simply about telecommunications services.
Instead, it is about controlling the infrastructure through which consumers pay, borrow, save, transfer money and conduct business online.
Regulatory Approval Key
Despite the opportunities, MTN’s next phase of growth remains dependent on regulatory approvals.
In Nigeria, regulators have adopted a cautious approach toward telecom-led financial services, balancing financial inclusion objectives against concerns around consumer protection, financial stability and market concentration.
Additional approvals would enable MTN to compete more aggressively in merchant payments, remittances, credit provision and payment processing services.
Without them, fintech rivals may continue gaining market share in some of Africa’s most lucrative digital finance markets.
A New Growth Engine
For MTN, the strategic direction is increasingly clear.
The company is seeking to evolve beyond its traditional role as a telecommunications provider and establish itself as a major participant in Africa’s financial services ecosystem.
If successful, the combination of expanded licences, strategic investors, lending capabilities and technology partnerships could transform MoMo from a mobile payments platform into one of Africa’s most influential financial super-apps.
As digital finance continues to reshape the continent’s economic landscape, MTN’s push into lending and financial infrastructure may prove to be one of the most consequential developments in African banking and fintech over the coming decade.
Source: Business Insider Africa
