MTN South Africa is revamping its Mobile Money (MoMo) customer acquisition strategy in a bid to boost adoption among the country’s unbanked population. According to a publication, Kagiso Mothibi, the acting CEO of MTN MoMo South Africa, revealed that the company is moving away from its initial digital-first approach in favor of an agent-led, “boots on the ground” strategy, which better aligns with the needs of its target market.
As of the first half of 2024, MoMo has 11 million registered users in South Africa, having added two million new users during this period. However, MTN has observed that customers acquired through digital channels often engage with the platform only for specific products or use cases they already understand, limiting their overall activity on the platform.
To address this, MoMo is now deploying agents and ambassadors to educate the public on the platform’s various use cases. This face-to-face interaction is expected to enhance the platform’s utility and build trust among potential users.
Many MoMo customers currently use the platform for well-known services like airtime recharge, airtime advance, and prepaid electricity. However, MTN’s strategy aims to drive these users towards higher-margin services, such as making purchases and withdrawals at merchants and buying insurance products.
While MoMo in South Africa trails behind markets like Ghana and Uganda in terms of maturity, the service is targeting not only the unbanked but also “underserved” banked customers. Mothibi pointed out that 60% of banked customers withdraw funds from their accounts in a single transaction to avoid banking fees, preferring to keep cash on hand. MoMo aims to provide these customers with a more cost-effective and convenient alternative.
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