MTN Nigeria's fintech business has yet to return to its pre-suspension revenue levels following the company's temporary halt of its airtime and data credit advance service between April and June 2026, even as it moves MoMo customers onto a newly upgraded platform.

Fintech revenue fell 25.91% to ₦97.5 billion ($72.42 million) in the nine months ended September 2026, according to MTN Nigeria's third-quarter financial results.

The decline underscores how dependent the unit remains on airtime and data credit advances as the telecom operator works to scale its mobile money operations and convert its telecoms market reach into sustainable fintech revenue.

The drop traces back to April 16, when MTN suspended Xtratime, its airtime and data credit advance service, to implement a new compliance framework required under Nigeria's lending rules. The company said the service has since resumed under a new multi-partner model and continued to recover in the third quarter, with revenue rising 78.5% compared with the second quarter. Even with that rebound, fintech contributed just 2.11% of MTN Nigeria's total revenue of ₦4.61 trillion ($3.42 billion) over the nine-month period — a share that shows how early-stage the unit remains within MTN Nigeria's overall business.

Alipay+ migration

MTN said MoMo Payment Service Bank (MoMo PSB) migrated to its new Alipay+ platform in August 2026, an upgrade to the unit's underlying fintech infrastructure.

"Built for reliability and scale, it offers a richer, more feature-packed and secure customer experience, giving MoMo PSB the foundation to become a scaled digital financial services platform," said Karl Toriola, MTN Nigeria's chief executive officer.

The migration followed a June partnership between MTN Group Fintech and Ant International, the international payments and financial technology arm of China's Ant Group, which operates Alipay+. The partnership aims to improve transaction speed and reliability for MoMo users in Nigeria.

MoMo's monthly active users reached 3.2 million at the end of the third quarter, according to MTN, which expects the figure to grow as existing wallets migrate to the new platform and new customers are onboarded. The company reported five million active wallets in the first half of 2026.

"Underlying engagement remained robust, with Q3 transaction volumes up 69.1% on Q2," Toriola added.

MoMo's push for scale

Revenue from the core mobile money business rose 102.2%, driven by higher float income — the earnings generated on the funds customers hold in their wallets — as wallet balances more than quadrupled to ₦43.8 billion ($32.54 million) from December 2025.

MTN attributed the increase to higher wallet adoption and deposit mobilisation, reflecting changes in customer funding behaviour rather than adjustments to product terms or pricing. The company noted, however, that deposits remain largely short-term and transactional, with balances payable on demand — a profile aligned with everyday payments rather than long-term savings.

MTN said its fintech priorities include migrating customers to the new MoMo platform, deepening wallet activity and use cases, and restoring the airtime and data credit service to expected levels by the end of November 2026. The end-of-November target is the nearest dated milestone the company has set, while regulatory approval of the new holding structure remains pending.

"The structural separation of the fintech business is progressing, subject to regulatory approvals," Toriola said.

In April, shareholders approved a restructuring to move MoMo Payment Service Bank Limited and Y'ello Digital Financial Services Limited into a new holding structure backed by MTN Group. Under the proposed arrangement, MTN Group, through its fintech investment arm, will acquire a 60% stake in the fintech businesses, while MTN Nigeria will retain the remaining 40%.

MTN aims to grow its Nigerian customer base to 30 million over the medium term, positioning MoMo to compete more directly with established mobile money operators. OPay, one of Nigeria's largest mobile money platforms, currently has about 50 million active customers — a benchmark that puts MoMo's 3.2 million monthly active users in perspective.