The mobile telecommunication giant, MTN, has announced that the contribution of Mobile Money (MoMo) to its revenue decreased from 22.8% to 19.3% year on year in the first half of 2022.
According to its 2022 half year unaudited financial statement, this was mainly driven by slower growth in P2P revenue and overall transactional activity and partly also by the introduction of the Electronic Transaction Levy (E-levy).
The MoMo service further recorded a 0.3% year on year decline in transaction value and a 19.3% year on year increase in transaction volume.
In May 2022, we implemented the e-Levy and reduced P2P transaction fees by 25% to reduce the burden of the e-Levy on our customers, these led to the slower growth in MoMo revenue in the period”, the report stated.
However, during the period MoMo revenue grew by 9% YoY to GHS899 million. Active MoMo users also increased on a year-on-year basis by 11% to 11.7 million and advanced service offerings continued to show positive growth of 24% YoY.
Advanced services remain a pivot for MoMo growth as we continue to expand the portfolio of products in that category. There are products in advanced piloting stage, and we expect these to be mainstream by the end of the year”, it added.
The Mobile Money service also recorded a 12.3% YoY growth in MoMo float which stood at GHc8.25bn at the end of the first half of 2022.
In compliance with the Electronic Transfer Levy, Act 2022 (Act 1075), MTN implemented a 1.5% levy on Mobile Money transfers on May 1, 2022, for Phase 1†, with Phase 2‡ implemented on July 1, 2022. The levy is applied to transfers done between accounts on the same electronic money issuer; transfers from an account on one electronic money issuer to a recipient on another electronic money issuer; transfers from bank accounts to mobile money accounts and vice versa; and lastly, bank transfers on an instant pay digital platform or applications originating from a bank account belonging to an individual.