The Battle for Africa’s Digital Wallet: How Vodacom and MTN Are Racing to Dominate Financial Services
Across the vast and varied landscape of Africa, a quiet revolution is unfolding not in boardrooms, but in the palms of millions of hands. It’s a race for digital supremacy, where two telecommunications giants, Vodacom and MTN, are vying to become the continent’s de facto bankers. In a region where traditional banking penetration remains stubbornly low, the mobile phone has become the new bank branch, and financial technology—or fintech—is the golden ticket.
This isn’t just a side project; it’s a core strategic pivot. As both companies look beyond their traditional voice and data revenues, their financial services arms have emerged as the most dynamic and promising growth engines. The question is no longer if mobile money will transform African economies, but which platform will ultimately dominate.
The Stakes: A Multi-Trillion Dollar Playing Field
The numbers involved in this high-stakes contest are staggering. For the year ending 31 March 2025, Vodacom Group reported that its fintech revenue reached a colossal R34-billion. This revenue was generated by a massive user base of 87.7 million active subscribers who conducted a mind-boggling 42.6 billion transactions. The total value processed? A peak of $450.8-billion (approximately R7.8-trillion).
Not to be outdone, MTN Group, reporting for the year to 31 December 2024, posted formidable figures of its own. Its fintech operations brought in R23.3-billion, driven by 63.1 million monthly active users who executed 15.3 billion transactions, with a total value of $321.3-billion (R5.5-trillion).
What do these figures tell us? They reveal a continent rapidly embracing digital finance, with Vodacom currently holding a lead in scale, but with MTN demonstrating formidable and growing traction. The sheer volume of transactions underscores a fundamental shift in how everyday commerce is conducted, from buying groceries to paying school fees.
The Super App Arena: VodaPay and M-Pesa vs. MoMo
At the heart of this battle are the consumer-facing applications—the “super apps”—that serve as the gateway to these digital financial ecosystems. The strategies here differ, reflecting each company’s unique approach.
Vodacom has opted for a multi-app strategy, leveraging the powerful VodaPay and Vodafone Cash brands, alongside the legendary M-Pesa platform. M-Pesa, in particular, has become synonymous with mobile money in East Africa, especially in Kenya, where it has woven itself into the very fabric of society. Its revenue grew by 15.2% in the last financial year, fueled by a 10.5% increase in active customers and a stunning 27% jump in transaction volumes to 36 billion.
MTN, in contrast, has consolidated its efforts under a single, powerful banner: MoMo (Mobile Money). This unified approach aims to create a seamless experience across its vast footprint, from Nigeria to Ghana. The results are impressive, with MTN Nigeria’s fintech revenue growing by 21.6% and MTN Ghana’s division exploding with a 48% growth rate.
Beyond Basic Transactions: The Rise of Advanced Financial Services
The initial wave of mobile money was about simple peer-to-peer transfers and airtime top-ups. But the race has now accelerated into far more sophisticated territory. Both operators are aggressively expanding into advanced services that were once the exclusive domain of traditional banks.
“Advanced financial services, such as savings, loans and merchant offerings, contributed more than 40% of M-Pesa revenue in the year, consistent with our strategy to expand the ecosystem,” Vodacom stated in its annual report. This strategic depth is critical. It’s no longer enough to move money; the winners will be those who can help users save, invest, and insure their futures.
Vodacom has made a significant move into wealth management, launching services in Kenya and Tanzania. The early success is notable, with assets under management in Kenya already reaching KSh10-billion (R1.3-billion). This foray into investment products signals a bold ambition to serve the entire financial lifecycle of a customer.
MTN, meanwhile, has sharpened its focus on the lucrative cross-border remittances market. In 2024, a remarkable $4.4-billion was transferred between its various African markets using the MoMo platform. Furthermore, its bank-tech platform disbursed $1.7-billion in loans, providing vital capital to individuals and small businesses often excluded from formal credit systems. “We have accelerated the roll-out of MoMo Advance in Cameroon and Ghana, adding to Uganda,” the company noted, highlighting its methodical expansion of credit services.
The Home Front and Beyond: Contrasting Markets
An interesting subplot in this narrative is the performance in the operators’ home market, South Africa. While both have gained some traction, growth has been tempered by the country’s relatively high rate of formal banking penetration. The real growth engines, the markets that have truly soared, are elsewhere on the continent.
Kenya, Tanzania, Nigeria, and Ghana have become the primary battlegrounds. Here, where a significant portion of the population remains unbanked or underbanked, mobile network operators have stepped in to fill a critical void. They are not just competing with each other; they are collectively challenging the legacy banking model, proving that financial inclusion can be both a social good and a highly profitable enterprise.
The Road to 2030: What Lies Ahead?
As both Vodacom and MTN set their sights on 2030, their focus on financial services is only intensifying. The strategic imperative is clear: to have a larger portion of group revenue flowing from these high-margin, scalable fintech operations.
Vodacom has articulated this vision clearly: “Financial services is the key driver of our ‘beyond mobile services’. Our financial services strategy is focused on driving and deepening financial inclusion for both consumers and merchants. As we deepen financial inclusion across our markets, we expect to unlock new economic growth opportunities.”
The race is far from over. It will be won not just by who can sign up the most users, but by who can build the most trusted, comprehensive, and innovative ecosystem. Who can best provide insurance to a farmer in rural Uganda? Who can offer the most accessible small business loan to a vendor in Lagos? Who can securely shepherd the savings of a teacher in Dar es Salaam?
This high-stakes contest between Vodacom and MTN is about more than corporate dominance. It is a defining chapter in Africa’s economic story, a testament to how technology can leapfrog legacy infrastructure and empower millions. For the average person on the street, the outcome of this race will shape how they interact with their money for decades to come.
Source: TechCentral