Ericsson and the MTN Group revealed an expanded collaboration aimed at enhancing mobile financial services, with the goal of empowering millions of citizens across Africa, in a joint announcement.

The partnership aims to widen the scope of financial inclusion, catering to both first-time users and high-end business applications by leveraging MTN’s Mobile Money (MoMo) service on the Ericsson Wallet Platform.

With more than 63 million active subscribers utilizing the MoMo platform across 16 African countries, the partnership is poised to significantly advance economic empowerment on the continent. MTN Group’s Chief Fintech Officer, Serigne Dioum, emphasized the comprehensive nature of the Mobile Money platform, offering services such as money transfers, payments, savings, and loans for every consumer.

Powered by the Ericsson Wallet Platform, MTN MoMo will now facilitate secure and convenient banking and payment transactions directly from mobile devices. This move is expected to provide MTN’s customer base in Africa access to a world-class mobile connectivity-based financial ecosystem.

During a visit by MTN executives to Ericsson headquarters in Kista, Sweden, the agreement was formally signed, solidifying strategic priorities and collaboration between the two entities. The partnership aligns with MTN’s ambition for 2025, aiming to build the largest and most valuable platform business while creating shared value for customers in Africa.

MTN MoMo has experienced significant growth, with the annual transaction value nearly tripling since 2018, reaching $204 billion (R3.8 trillion) in 2022. Transaction volumes surged by almost 300% during the same period, from 3.5 billion transactions in 2018 to 12.7 billion in 2022.

Ericsson’s Wallet Platform, which supports over 400 million registered mobile wallets and processes more than 2.8 billion transactions monthly, worth over $40 billion, globally through communication service providers and financial institutions, plays a pivotal role in the collaboration.

MTN MoMo customers will now enjoy expanded services, including managing funds, paying merchants and utility providers, and accessing loans and insurance services. The platform emphasizes financial technology, focusing on growth in merchant and e-commerce payments, facilitating national and international money transfers, advancing banking solutions, and offering insurance services.

According to Michael Wallis-Brown, Ericsson’s Head of Mobile Financial Services, the collaboration is a significant milestone in executing MTN’s Ambition 2025 and demonstrates the power of mobile financial services to empower individuals and businesses at all financial standings. The partnership aligns with Ericsson’s AfricaInMotion vision, aiming to promote a sustainable and connected Africa.

Entrepreneurs will benefit from the collaboration by having the opportunity to develop revenue-generating applications. Utilizing Continuous Integration/Continuous Deployment, the partnership aims to enable an automated software development and deployment workflow for the MTN MoMo fintech platform across all its African operations.