BoN grants MTC approval to issue e-money

June 04, 2023

Mobile Telecommunications Limited (MTC), has received provisional approval from the Bank of Namibia (BoN) for its subsidiary, Windhoek General Administrators (WGA), to issue electronic money in the country.

This development marks a significant milestone as MTC seeks to drive growth through the launch of the Mobile Financial Services (MFS) business.

As part of its strategic plans to empower customers with convenient and secure financial solutions, MTC aims to expand its Mobile Financial Services offerings.

"MTC also plans to expand its Mobile Financial Services (MFS) offerings, aiming to empower customers with convenient and secure financial solutions. The Bank of Namibia has granted MTC's subsidiary, Windhoek General Administrators (Pty) Ltd, provisional authorisation to issue electronic money in Namibia," the listed telco said.

The utilization of WGA will ensure compliance with the Bank of Namibia's requirements and guidelines for e-money issuers in the country.

Leveraging its well-established distribution channel, MTC plans to establish mobile agents throughout Namibia, thereby creating payment solutions specifically designed for the underserved and unbanked population.

The company's strategic move aligns with the rising popularity of mobile money platforms.

According to the Bank of Namibia, the value and volume of e-money transactions witnessed a significant surge in 2022, reaching N$34 billion and 64 million, respectively. The growth was attributed to changing consumer behavior, driven by the ease of use and accessibility of mobile wallets.

MTC estimates that a substantial portion of its subscriber base, at least 40%, will adopt MTC's mobile money services within the next five years.

This adoption is expected to generate an estimated 15% of MTC's total revenue. Such projections are in line with MTC's long-term growth strategy, as the company actively pursues a transformation from a Communications Service Provider (CSP) to a Digital Service Provider (DSP).

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Last modified on Monday, 05 June 2023 19:37

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