Telecommunications group MTN’s Mobile Money (MoMo) platform has reached eight-million subscribers four years after its launch as South Africans increasingly seek alternatives to traditional financial service offerings.

Amid a need to reduce expenditure and service costs, demand is rising for connectivity, simplicity, reliability, added value and an increasing range of services from a single source.

The demand for financial service alternatives is also emerging among those in rural areas lacking traditional infrastructure.

“As more South Africans look to join the mainstream financial services sector, they encounter discouraging fees, complexity and bureaucratic hurdles. Compounding this is the present economic situation, which is seeing banking fees increase, and even double in some cases,” said MTN chief financial services officer Bradwin Roper.

The ongoing search for alternative services is a crucial step towards creating a more equitable society, allowing previously unbanked individuals and those with lower incomes or wages to benefit from the formal financial sector, he said, noting that consumer trends indicate that the search for alternative services will only accelerate into the future.

The advantage that MTN and other significant players in this sector have is that they do not have the legacy investments in technology and systems common to many mainstream financial institutions.

“Our ability to offer cost-effective and convenient smartphone-based services and quickly adapt to changing customer needs to launch add-on services means we have a significant business advantage,” said Roper.

“Our ability to pivot, meet demand and control costs, together with our commitment to offering customers innovation at every step, will drive benefit for a growing customer base well into the future,” he continued.

Key to the success of MTN’s African Bank-powered MoMo platform, he highlights, is that it provides access to fee-free benefits and a range of services, including unique features like free Lotto participation, fee-free payments for DStv accounts, electricity and effortless transfers to betting wallets.

Users can also buy airtime and data without additional charges and apply for personal loans.

“The fee-free benefits of many of our MoMo services are significant, particularly as many individuals struggle to make ends meet, amid mounting financial pressures,” he said.

Another key MoMo feature is the availability of long-distance bus tickets, which are now available on the app and also over the counter, with over 19 000 MoMo agents countrywide.