- MTN is finalising the separation of its Nigeria and Uganda fintech businesses to attract strategic investors.
- The company is also pursuing licences that could allow it to lend directly to customers.
- Nigeria is central to the plan because of its huge population, cash-heavy economy and $236 billion MSME credit gap.
- The move intensifies competition with banks, fintech startups, Airtel Money, Mastercard-backed platforms and Chinese fintech infrastructure.
The Johannesburg-based company is finalising the structural separation of its Nigerian and Ugandan fintech units, a key step required to complete a minority investment deal with Mastercard and open the door to other strategic buyers
The move places MTN at the centre of one of Africa’s biggest financial-services battles: who will control the next generation of payments, credit, remittances and merchant services on a continent where hundreds of millions of people still rely heavily on cash
MTN Group CEO Ralph Mupita told investors at the company’s capital markets day that the process is delicate because the company wants to avoid losing value while carving fintech assets out of its telecoms structure
“The separations are complex as we have to minimise value leakage,” Mupita said
He added that MTN is open to selling minority stakes of up to 30% in its fintech businesses, but said the company is not being pushed by an IPO timetable
“On fintech, we are open to minority shareholding all the way up to 30%; we are not driven by IPO timelines,” he said
Nigeria becomes the prize
Nigeria is central to MTN’s fintech ambitions because it offers both the biggest opportunity and one of the toughest regulatory puzzles
With more than 200 million people, a large informal economy, high cash usage and millions of small businesses struggling to access credit, Nigeria is one of Africa’s most attractive fintech markets
But MTN has not been able to move as quickly as some local fintech rivals because its current licence does not allow it to offer the full range of services it wants, including some forms of lending, international remittances and payment products
That gap has helped newer fintech players such as OPay and PalmPay gain ground in payments, transfers and agency banking
MTN is now trying to close that gap
The company has applied for Payment Solution Service Provider and Payment Terminal Service Provider licences through MoMo PSB, its Nigerian fintech subsidiary
If approved, the licences would allow MTN to handle more payment processing, build merchant payment tools, deploy and manage POS terminals, and reduce its dependence on third-party processors
Mupita said the licensing process in Nigeria is still ongoing, while the Central Bank of Nigeria is also reviewing the planned separation of the fintech business
In simple terms, MTN wants more control over the pipes that move money across its network
MTN wants to lend, not just process payments
The bigger shift is lending
MTN Group Fintech CEO Serigne Dioum said the company wants to move beyond helping customers access loans through partners. In markets where regulators allow it, MTN wants to lend directly and use its own balance sheet
“We’ve expanded access to credit for more people, but we also want to move further up the lending value chain,” Dioum said
“Where appropriate, we will seek licences that allow us not only to facilitate loans but also to lend directly to customers and deploy our own balance sheet.”
That would mark a major change in MTN’s fintech model
Today, mobile-money platforms mainly earn fees from payments, transfers, merchant activity and partnerships
Direct lending could give MTN a larger share of revenue, but it would also expose the company to credit risk, regulation and tougher competition with banks and digital lenders
Still, the market is huge
Across Africa, Dioum said only about 4% to 5% of adults have access to formal credit. In Nigeria, the funding problem is especially severe
A 2025 report by the National Credit Guarantee Company said nearly 80% of Nigerian MSMEs lack access to formal credit, while Stears has estimated the country’s MSME financing gap at about $236 billion
For traders, small shop owners, transport operators and households, access to small loans can determine whether they restock inventory, pay suppliers, cover emergencies or expand a business
For MTN, it could become a new profit engine
A $500 billion fintech machine
MTN’s fintech business is already one of the largest digital finance platforms on the continent
In 2025, the company’s fintech operations processed about $500.3 billion in transaction value across its markets. Transaction volumes rose to 23.3 billion, while MoMo monthly active users reached 69.5 million
The group said its fintech revenue grew strongly, supported by higher use of payments, remittances, merchant services and other advanced financial products
That scale explains why global investors are paying attention
Mobile money is no longer a side business for African telecoms operators. It is becoming a financial infrastructure layer for markets where bank branches remain limited, card penetration is uneven, and cash still dominates everyday transactions
GSMA data shows that mobile money processed about $2 trillion globally in 2025, with sub-Saharan Africa remaining the world’s most important mobile-money region
For investors, platforms such as MTN MoMo offer something difficult to replicate: large customer bases, agent networks, merchant relationships, transaction data and trusted telecom brands
Mastercard, Alipay and the race for African fintech infrastructure
MTN’s planned separation of its fintech assets is tied to its Mastercard deal, first announced in 2023. Mastercard’s interest reflects a wider global race to capture Africa’s digital payments growth
MTN is also working with Ant Group’s Alipay to revamp its MoMo ecosystem. The partnership could help MTN modernise its mobile-money platform, improve merchant services and build a broader financial-services marketplace
This is not just a telecoms story. It is a contest involving banks, card networks, Chinese fintech infrastructure, African startups and regulators
The prize is control over how Africans pay, borrow, save, send money and do business online
Airtel raises the pressure
MTN is not moving alone
Airtel Africa, backed by Indian billionaire Sunil Mittal, is preparing its Airtel Money business for a possible IPO that could value the unit at as much as $10 billion, according to earlier Bloombergreporting
Airtel has since delayed the listing to the second half of 2026, citing difficult global market conditions, but the planned IPO has already sharpened investor attention on African mobile money
The comparison matters
If Airtel Money can command a multibillion-dollar valuation as a standalone fintech business, MTN will face growing pressure to show investors the hidden value inside MoMo
Mupita has insisted that MTN is not being driven by IPO timelines. But by separating fintech units, selling minority stakes and deepening partnerships, the group is effectively preparing the business for a future in which fintech is valued separately from voice and data
Why regulators matter
Regulators will decide how far and how fast MTN can go
In Nigeria, the CBN has been cautious about telecom-led financial services because of the risks around consumer protection, banking stability, payments oversight and the concentration of financial data
Payment service banks were designed to deepen financial inclusion, especially among unbanked and underserved people. But they are not the same as full commercial banks
That is why MTN’s push for additional licences matters. The company wants to move from basic mobile money into higher-value services such as merchant payments, remittances and credit
If regulators approve, MTN could become a much stronger competitor to banks, payment processors and fintech startups
If approvals move slowly, rivals may continue to capture market share
What happens next
MTN’s next phase will depend on three things: regulatory approval, investor appetite and execution
If the Nigerian and Ugandan separations are completed smoothly, Mastercard and other strategic investors could take minority positions in MTN’s fintech businesses. That would bring capital, technology and credibility
If MTN secures broader licences in Nigeria, it could compete more aggressively in payments, POS services, merchant acquiring, remittances and lending
And if its Alipay partnership works, MoMo could become less of a traditional mobile-money wallet and more of a financial super-app for African consumers and small businesses
The risks are also clear
Lending directly to customers can be profitable, but it can also become expensive if defaults rise. Fintech regulation is tightening across Africa. Competition from banks, startups and rival telecoms is intensifying. And consumers remain highly sensitive to fees, failed transactions and trust issues
Still, MTN’s direction is clear
Africa’s biggest telecoms operator no longer wants to simply connect people by phone. It wants to sit inside the flow of money
And in a continent where cash still dominates, credit remains scarce, and digital payments are expanding fast, that could become one of the most important business battles in African finance
