MTN Group CEO Ralph Mupita said the company is targeting a valuation of between $5 billion and $6 billion for its mobile money arm, as it prepared the sale or listing of a minority stake in the unit.
Mupita outlined basic details about the future of its mobile financial services arm, which is set to be separated as part of a strategy to help it cash-in on various assets unveiled in March.
The company, which operates across several of Africa’s largest markets, has long prized its mobile money offer with the segment often cited as one of the major growth areas in the business.
Mupita said MTN planned to structurally separate the business within the next year. Funds raised from its money and infrastructure assets will go towards further cuts in MTN’s debt pile, adding to disposals of a number of parts of the business deemed non-core in the last two years.
MTN is also in the process of selling-up in the Middle East as it plans to focus its efforts on Africa.
Mercy Corps Partners YDFS to Deliver Cash Transfers to Vulnerable Households in Yobe State
Mercy Corps’ ‘Building Resilience in Complex Crisis (BRICC)’programme funded bythe European Union,has signed a new partnership with Y’ello Digital Financial Services (owners of the MoMoAgent Network),a subsidiary of MTN Nigeria,to efficiently deliver automatedcash transfers and provide an avenue for programme participantswith or without bank accounts to receive funds.
This partnership will kick-start the use of MoMo Agent in the distribution of conditional and unconditional cash transfers to 14,270 households in Damaturu and Potiskum LGAs in Yobe state.
The European Union is funding Mercy Corps to implement an array of early recovery interventions across North-East Nigeria which involves cash assistance to vulnerable households and young people to help restore and improve livelihoods,making them more resilient to conflict and climate shock and stress.COVID-19 has aggravated the impact of the conflict in the state, affecting market opportunities and increasing unemployment. Of the participants that will be given cash transfers, 1,570 youths will receive funds to help them start a business after undergoing vocational training like automobile repairs, agribusiness, fashion designing, food business, and phone repairs, among others.
Dez Byamukama, BRICC Programme Director, Mercy Corps said, “The major goal of the BRICC programme is to build the resilience of communities, by providing them with the capacity and resources to respond to shocks and stresses, which have been worsened by the COVID-19 pandemic. Cash supports beneficiairies to respond to their basic needs and survive economic hardship, Automated cash transfer also reduces the cost and security risks associated with the transfer and direct distribution of cash.”
The presence of MoMoagents in communities where BRICC is implemented, means faster and more efficient means of delivering cash transfers without participants having to wait in long queues.With an agent base of over 150,000 across the country, MoMo Agents provide safe, fast and easy access to financial services for customers through their widespread presence and reliable service.
This partnership with Mercy Corps provides a unique opportunity to extend these benefits to the most vulnerable families in Yobe State and other conflict-affected states in the North East.
Commenting on the collaboration, Usoro Usoro, Chief Executive Officer, Y’ello Digital Financial Services said his organisation is commitedto ensuring that every Nigerian is able to seamlessly access financial services for their personal and business needs. “To do this, we constantly seek partnerships to support the financial inclusion strategy of the federal government. We are truly excited about this arrangement with Mercy Corps and the possibilities. With over 150,000 agents spread across the country, we are poised to deliver easy and fast cash transfers to beneficiaries of the programme in Yobe State and other locations within the country where required,” he stated.
EU Head of Cooperation,Tassin-Pelzer Cecile, also commended the initiative, noting that cash transfers are often more efficient and effective than other forms of aid. She said: “Cash provides beneficiaries with the means and flexibility to decide and prioritise their recovery. In many contexts, cash assistance allows more aid to reach the beneficiaries directly. It also supports local markets and economy, laying the foundations for communities’ recovery and resilience. Cash transfers are effective in addressing negative-coping strategies such as poor diets or debts. It is very important that Mercy Corps continuous to work with the government to strengthen the State Social registry of the most vulnerable linking beneficiaries with the social protection programme.”
MTN Nigeria’s YDFS Partners Bet Operators As Mobile Mobile Agents
Y’ello Digital Financial Services (YDFS), a subsidiary of MTN Nigeria, has announced its partnership with gaming operators, Betway, BetPawa and Betmojo through its flagship mobile money transfer service, MoMo agent.
The strategic partnership will enable customers to cash their winnings and fund wallets conveniently at any MoMo agent outlet nationwide.
Chief Executive Officer, YDFS, Usoro Usoro,said the “partnerships are the fuel for progress within our communities. So, we are constantly exploring innovative relationships to help deliver cost-effective, fast, transparent, and reliable remittance services.
“Our customers deserve simple solutions making it easier for them to access financial services, no matter where they are. Our partnership with gaming operators helps deliver that,” Usoro added.
Speaking on the partnership, Lere Awokoya, Betway’s country manager said, “We are proud of our collaboration with MoMo. Our customers now have easier access to their Betway wallet guaranteed. Customers can also deposit and cash-out wins with their neighbourhood MoMo Agent.”
“We are committed to improving our customer’s experiences through a more personable, digital and sustainable approach. This partnership provides that. We look forward to a successful working arrangement that continually keeps the customer in focus,” added Segun Somefun, CEO, Betpawa
Betmojo customers can also take advantage of the partnership through the ‘Pick 3’ game on the platform to cash out on their winnings with MoMo. With an agent base of over 300,000 across the country, MoMo Agent forms a major part of the Central Bank of Nigeria’s financial inclusion drive to ensure that 95 per cent of adults are financially included by 2024.
The partnership allows customers to utilise MoMo’s widespread presence and reliable service to access funds. MoMo Agent services include bill payment, cash deposit and withdrawal, data and airtime purchase, and a bulk disbursement solution which enables public and private companies to make payment to beneficiaries anywhere in Nigeria without a bank account or ATM availability.
Mobile Money: YDFS Expands Cardless Cash Withdrawal Service to 44 Financial Institutions
Mobile money service provider, Y’ello Digital Financial Services (YDFS) has announced the expansion of its MoMo Agent cardless cash withdrawal service to over 40 banks and other financial institutions nationwide, providing seamless financial solutions to more people.
Initially exclusive to Access Bank, the service has now been extended to include First Bank of Nigeria, Zenith Bank, GTBank Plc, United Bank of Africa and other tier-one commercial banks.
Using the service, customers can visit MoMo Agents nationwide to access funds in their bank accounts without requiring an Automated Teller Machine (ATM) or ATM card. The service utilises a secure gateway that protects customers against fraudulent transactions and requires transaction validation using their bank PIN.
Commenting on the expansion, Chief Executive Officer, Y’ello Digital Financial Services, YDFS, Usoro Usoro said, “We all must play our part in the Federal Government’s financial inclusion drive, which we know is essential for every Nigerian. With this, more MoMo users can walk up to the nearest MoMo Agent to withdraw cash from their bank account without visiting a bank or an ATM.”
Launched in 2019, MoMo Agent expanded its financial services in 2020 for underbanked and unbanked communities to include bill payment, cash deposit and withdrawal, data and airtime purchase and bulk disbursement services. With an agent base of over 150,000 spread across over 700 local governments, customers on the MTN network can dial *223# to locate the nearest MoMo Agent.
Why it matters
With the cardless cash withdrawal service, MoMo Agents’ sustained innovation aligns with the Central Bank of Nigeria’s (CBN) financial inclusion target of 95% by 2024. This target was reviewed in 2019 as part of a five-year strategy to sustain inclusive economic growth.
To achieve this, Nigeria must attain an inclusive financial sector that has closed the gender gap. As at 2018, Enhancing Financial Innovation and Access (EFInA) revealed that only 59.1% of women compared with 67.5% of men were financially included representing a gender gap of 8.4%. The nature of mobile money makes it easier for women in rural areas to access financial services, which in turn stimulates economic growth.
The cardless cash withdrawal is a good initiative to deepen this inclusion. With the service, residents in rural areas can perform financial transactions without worrying about or using an ATM card. It is another major collaborative step between the mobile money service provider, YDFS and commercial banks in Nigeria.
List of Financial Institutions
- First Bank of Nigeria
- Zenith Bank
- GTBank Plc
- Access Bank
- Access (Diamond) Bank
- Ecobank PLC
- Standard Chattered Bank
- Fidelity Bank
- United Bank for Africa (UBA)
- Unity Bank
- Union Bank
- Sterling Bank
- First City Monument Bank (FCMB)
- Skye Bank
- Wema Bank
- Enterprise Bank
- Keystone Bank
- Jaiz Bank
- Stanbic IBTC Bank
- Suntrust Bank
- Heritage Bank
- Citi Bank
- Coronation Merchant Bank
- Access Money
- Eco Mobile
- Fidelity Mobile
- GT Mobile
- Zenith Mobile
- Money Box
- Safetrust Mortgage Bank
- Covenant Microfinance Bank
- NPF Microfinance Bank
- Fortis Microfinance
- Omoluabi Mortgage Bank
- Sterling Mobile
- Page MFB
- Stanbic Mobile Money
- Fortis Mobile
- FBN Mobile
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