MTN Nigeria’s fintech arm, MoMo PSB, has faced significant challenges in Nigeria’s competitive fintech market. Despite initial growth, the company lost 2.5 million active wallets in 2024, sparking concerns about its strategy.

MoMo PSB is one of five Payment Service Banks (PSBs) licensed by the Central Bank of Nigeria to drive financial inclusion in rural and underserved areas.

However, the PSB license comes with limitations, including restrictions on offering loans, forex services, or investing beyond government-approved securities.

Industry experts suggest that MoMo PSB’s decline in active wallets may be part of a broader trend, with many payment service banks focusing on urban areas and competing for existing bank customers rather than targeting rural communities.

Despite these challenges, MoMo PSB is actively expanding its service offerings, applying for Payment Service Solutions Provider (PSSP) and Payment Terminal Service Provider (PTSP) licenses.

The company aims to reduce its reliance on agents and better serve small and medium-sized enterprises (SMEs) and individual customers.

CEO Karl Toriola remains optimistic, interpreting the increase in transaction volume as a sign of a higher-quality wallet base and strong underlying demand.

As MoMo PSB navigates the complexities of Nigeria’s fintech landscape, its ability to adapt and innovate will be crucial to its success.