Revenue of the mobile money (MoMo) arm of telecommunication market leader – MTN – reached GH¢899million, a 9 percent growth on a year-on-year growth in the first half of the year, its unaudited interim report has shown.
The figure, however, pales in comparison to the 50.9 percent YoY growth recorded a year earlier, and was attributed to slower growth in Peer-to-peer (P2P) revenue and overall transactional activity occasioned by the 25 percent reduction in transaction fees, as well as customer pushback against the implementation of the E-Levy, resulting in a 0.3 percent decline in MoMo transaction value.
Nevertheless, the number of active MoMo users and the volume of transactions increased by 11 percent and 19.3 percent respectively, over the period. Additionally, advanced service offerings such as retail merchant payments, insurance and international remittances, continued on a positive trajectory, rising by 24 percent on an annualised basis.
Commenting, MTN said: “Advanced services remain a pivot for MoMo growth as we continue to expand the portfolio of products in that category. There are products in the advanced piloting stage, and we expect these to be mainstream by the end of the year”.
As was expected, the contribution of MoMo to service revenue sunk to 19.3 percent from 22.8 percent a year ago. However, overall service revenue increased by 28.9 percent to reach GH¢4.7billion in the half year.