MTN South Africa has launched MoMo Pay, a low-cost digital payment platform targeting the cash-heavy informal sector, which accounts for over 95% of transactions in the area.

The platform enables merchants to accept payments via QR codes and other methods at a 0.5% fee, significantly undercutting competitors, and requires no paperwork or registration fees.

MoMo Pay aims to integrate informal businesses into the formal economy by eventually offering microloans, savings, and insurance products, supporting financial inclusion and economic growth.

MTN plans to onboard hundreds of thousands of small businesses within the next three to five years, leveraging its large mobile user base and dedicated support teams.