Africa’s largest telecommunications group is considering obtaining banking licences in selected markets as it prepares to move beyond mobile payments and expand directly into deposits and lending. The strategy could transform MTN’s MoMo platform from a mobile wallet into a more complete digital banking operation.
Lending becomes the next growth engine
MTN currently offers loans through partnerships with licensed banks. Under the proposed model, the group could accept customer deposits and gradually begin financing loans from its own balance sheet.
Chief executive Ralph Mupita said the company would examine banking licences in markets where MTN has a large customer base and significant amounts of money held in mobile wallets.
The approach will be selective rather than introduced across all the group’s operations. MTN operates in 19 markets and serves more than 317 million customers, giving it an extensive distribution network but also exposing it to different banking regulations and economic conditions.
MoMo reaches financial scale
MTN’s mobile money business already operates at a scale comparable with major financial institutions.
MoMo recorded 70.8 million monthly active users during the first half of 2026, an increase of 12.1% from the previous year. Customers completed 13 billion fintech transactions, representing growth of 17.2%.
The total value of transactions increased by 33.8% in constant currency terms to $330.5 billion. Fintech revenue reached 14.9 billion rand, rising by 13.3% in constant currencies.
These figures show that MTN already has the customer activity and transaction data required to build broader financial services. Payments, remittances, insurance, e-commerce and lending are becoming increasingly important as traditional voice revenue matures.
Banking licences would change the model
A banking licence would allow MTN to retain deposits and earn interest directly from loans instead of relying entirely on partner banks.
That could increase revenue and give the company greater control over product design, credit decisions and customer relationships. It could also enable MTN to provide small loans to individuals and businesses that remain outside conventional banking systems.
Mobile operators have an advantage in African markets because they already possess extensive customer networks, local agents and transaction histories. This information can help assess borrowers who lack formal credit records or regular salary documentation.
Greater opportunity brings greater risk
Balance-sheet lending would expose MTN to credit losses, liquidity requirements and stricter regulatory oversight. The company would need to reserve capital against loans and develop more advanced systems for affordability assessments, fraud prevention and debt collection.
Regulators may also require MTN’s financial operations to be structurally separated from its telecommunications businesses. Different countries have varying rules governing deposits, lending, data protection and consumer safeguards.
Mupita indicated that the transition would therefore be gradual and that banking partnerships would continue even where MTN obtains its own licence.
A new phase for African digital finance
MTN’s plans demonstrate how Africa’s mobile money industry is evolving beyond transfers and basic payments. The next stage will be defined by savings, credit, insurance and services for small businesses.
If MTN secures banking licences, it would compete more directly with commercial banks and digital-first lenders. Its reach could accelerate financial inclusion, but success will depend on whether the company can manage banking risk as effectively as it has scaled mobile communications.
Newshub Editorial in Africa – 26 August 2026
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