BankTech, the digital lending arm of MTN Mobile Money unit, disbursed a record $592 million in loans in Q1 2025, according to MTN Group’s financials, its highest since launching in August 2023. The surge highlights growing demand for microloans and the rising role of telcos in closing Africa’s credit gap.
The lending platform is MTN’s strategic push into banking-as-a-service (BaaS), offering APIs that enable fintech startups, businesses, and digital platforms to integrate financial services, such as lending, savings, and insurance, directly into their ecosystems. Loans are primarily issued to individuals and small businesses through MTN’s BankTech platform.
BankTech highlights the growing role of telecoms in driving financial inclusion. Before MTN joined the digital lending space, platforms like Safaricom’s M-Shwari (launched in 2012), KCB M-Pesa (in partnership with Kenya Commercial Bank), Airtel Money Loans across East Africa, and Vodacom’s M-Pesa in South Africa had already paved the way for mobile-based consumer lending in Africa. Collectively, these telco-led platforms represent a consumer lending marketplace valued at approximately $247 million, all aiming to bridge Africa’s estimated $782 billion credit gap as of 2024.
BankTech’s growth reflects a shift in consumer confidence, showing that users are increasingly embracing telecom-driven financial solutions as credible alternatives to traditional banks. The platform started gaining momentum in 2024, disbursing $371.7 million in loans in the first quarter, followed by $359.9 million in Q2, $461.5 million in Q3, and $546.8 million in Q4. This steady growth led to a record $731.6 million in loans disbursed in Q1 2025.
According to MTN’s financial reports, the surge was largely driven by strong performance in Ghana, Uganda, and Cameroon—markets where MTN’s fintech services are growing quickly and digital lending is becoming more established.
Despite being MTN’s largest market by subscribers, Nigeria has yet to meaningfully participate in this lending surge due to regulatory constraints. MTN Nigeria operates under a Payment Service Bank (PSB) licence, which limits it to providing basic financial services such as deposits, transfers, and mobile wallets. The Central Bank of Nigeria prohibits PSBs from offering credit products, keeping MTN’s lending ambitions in the country on hold.
This means MTN’s BankTech cannot operate its lending business in Nigeria, even as demand for credit continues to climb. Instead, the company relies on Xtratime, an airtime advance service that lets subscribers borrow airtime and repay it on their next recharge. Though not classified as a cash loan, Xtratime plays a similar role for low-income and unbanked users needing short-term value.
Despite regulatory constraints, Xtratime has become a crucial driver of MTN Nigeria’s fintech revenues. In Q1 2025, MTN Nigeria reported a 57.9% year-on-year increase in fintech revenue, hitting ₦36.1 billion. This was largely fueled by the growth of airtime lending via Xtratime.
The growth was bolstered by a revamp of MTN’s customer acquisition strategy starting in Q3 2024. The company optimised incentives, strengthened distribution oversight, and focused on attracting high-value users, leading to deeper service penetration and better customer retention. As of Q1 2025, MTN Nigeria’s subscriber base grew by 8.2% to 84.1 million, adding 3.2 million new users—many of whom are potential Xtratime users.
One way MTN would have expanded its fintech services in Nigeria is to spin off its fintech unit and have it run like an independent fintech company, but progress has been slow.
MTN Group CEO Ralph Mupita recently acknowledged that the process is “more complex than expected,” due to Nigeria’s multilayered regulatory environment. Agencies such as the CBN, Federal Competition and Consumer Protection Commission (FCCPC), and others impose tight scrutiny on lending and data-driven financial services, delaying MTN’s ability to scale BankTech operations in Nigeria.
While MTN continues to advocate for broader financial service permissions under its PSB licence, its focus for now remains on scaling in more liberal fintech markets like Ghana, Uganda, and Cameroon, where it’s already reshaping access to credit.
