MTN to offer cash loans through MoMo as it partners with a credit provider

Mobile telecoms operator MTN South Africa has partnered with Lndr, a registered local credit provider, and will offer financial loans.

MTN will offer the loan service through its Mobile Money platform, MoMo as it said on Tuesday.

Personal loans offered will range from R2 000 to R180 000, with R1 000 of the approved funds going directly into the customer’s MoMo wallet.

The company says its clients can apply by logging into the MoMo platform and checking if they are eligible to get a loan.

Once they have uploaded the required documents, they will be notified by SMS within 24-48 hours of the assessment outcome, MTN said.

According to the mobile company, some 6.2 million people are already subscribed to the MoMo service, and the personal loan offering will further extend its impact.

MTN has also partnered with local fintech startup Zapper and services aggregator QuickBus.

News24 published that the Zapper feature will allow customers to make instant virtual payments to Zapper-enabled merchants across SA on the MoMo app, while the QuickBus feature will let them compare and purchase bus tickets across 25 different operators.

Using Zapper will link customers to over 27 000 merchants, ranging from restaurants and larger retailers to spaza shops.

“Financial inclusion is critical in building a more equitable society and MoMo offers the very best of digital financial services to emerging markets, and it’s just set to grow. Particularly useful for those living and working outside of urban centres, we’re pleased by the innovation we’ve unlocked through MoMo since we launched in 2019,” said Felix Kamenga, MTN SA Chief Officer for Mobile Financial Services.

“We want to unlock economic growth through financial and digital solutions for consumers and businesses of all sizes. As we grow our service offering, we aim to create a marketplace that supports cashless and digital economies through affordable, inclusive, understandable, and comprehensive financial services.

One of the country’s most loved network carriers, MTN, also announced that the rationale behind MoMo is to make payments easier and safer for both consumers and businesses.

“The aim of our POS solution is to help grow formal SMEs and stimulate the growth of spaza shops across SA,” MTN said.