Telecommunications group MTN South Africa’s mobile money platform, MoMo, has launched a digital payment solution designed for informal merchants.

MoMo Pay offers ease, affordability and scalability, empowering traders to accept payments instantly through QR codes, merchant IDs or payment requests, with a minimal transaction fee of 0.5%.

“South Africa’s informal economy is rich with entrepreneurial potential, but until now, it has been locked out of the digital finance revolution,” says MTN South Africa Fintech CEO Kagiso Mothibi.

Although informal businesses form the backbone of South Africa’s economy, many operate outside the formal financial system, with more than 80% of transactions still cash-based, as there is limited access to digital payments, affordable banking or reliable credit.

“The need for inclusive, low-cost financial tools is more urgent than ever.”

MTN aims to digitise hundreds of thousands of informal small and medium-sized enterprises over the next three to five years, turning MoMo Pay into a cornerstone of financial inclusion and economic resilience in South Africa.

“With MoMo Pay, we are not just digitising payments – we are unlocking a pathway to financial dignity and scalable opportunity for every vendor, spaza shop and street trader.”

In addition to accepting payments, MoMo merchants can sell value-added services such as airtime, data, prepaid electricity, DStv subscriptions, Lotto and bus tickets, besides others, earning commissions on every transaction.

“Adoption is ramping up rapidly. Thousands of merchants have already been onboarded, supported by MTN’s dedicated merchant acquisition team, who provide on-the-ground training and seamless onboarding,” Mothibi points out, adding that there are no registration fees and the platform boasts a rapid setup and a mobile-first user experience

Beyond payments, the platform is also laying the foundation for a full-spectrum digital financial ecosystem where merchants can access microloans, build savings, insure their operations and ultimately participate more fully in the formal economy.

“As more merchants join the platform, the network effect grows, creating a vibrant, hyperlocal commerce engine. We see MoMo merchants not just as sellers, but as community hubs. They are trusted touchpoints, and we want to give them the tools to do more, serve more, earn more, grow more,” Mothibi says.