MTN’s mobile money platform, MoMo, has launched MoMo Pay, a digital payment solution for informal merchants.
In a statement, MTN says small informal businesses are the backbone of South Africa’s economy, yet many still operate outside the formal financial system, with limited access to digital payments, affordable banking, or reliable credit.
It adds that in a country where over 80% of transactions in the informal sector remain cash-based, the need for inclusive, low-cost financial tools is more urgent than ever.
According to MTN, this initiative aims to bridge the financial inclusion gap in SA. MoMo Pay allows merchants to accept payments instantly via QR code, merchant ID, or payment request, with a minimal transaction fee of 0.5%.
South Africa’s informal economy is rich with entrepreneurial potential, but until now, it’s been locked out of the digital finance revolution, according to Kagiso Mothibi, CEO of fintech at MTN South Africa.
“With MoMo Pay, we’re not just digitising payments − we’re unlocking a pathway to financial dignity and scalable opportunity for every vendor, spaza shop and street trader.”
In addition to accepting payments, MoMo merchants can sell value-added services such as airtime, data, prepaid electricity, DStv, Lotto and bus tickets.
He notes that adoption is accelerating rapidly, with thousands of merchants already onboarded, particularly in townships, rural areas and bustling urban markets.
“We’ve designed MoMo Pay to be radically accessible. There’s no paperwork burden, no tech complexity − just a smartphone and a vision to grow.”
Mothibi says MoMo’s ambitions extend beyond payments, as the platform is laying the foundation for a full-spectrum digital financial ecosystem where merchants can access microloans, build savings, insure their operations, and ultimately participate more fully in the formal economy. As more merchants join the platform, the network effect grows, creating a vibrant, hyperlocal commerce engine, he comments.
“We see MoMo merchants not just as sellers, but as community hubs. They’re trusted touchpoints, and we want to give them the tools to do more, serve more, earn more, grow more.”
Over the next three to five years, MTN aims to digitise hundreds of thousands of informal SMEs, turning MoMo Pay into a cornerstone of financial inclusion and economic resilience in SA, it says.
“Our vision is simple: we want every informal trader in this country to have a shot at digital prosperity. MoMo Pay is our first major move to make that happen − because real inclusion starts at the street level.”
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