UBA, MTN MoMo, and RedTech launch cardless payment solution

Key Points

• The United Bank for Africa (UBA), MTN Mobile Money (MoMo), and RedTech have introduced a cardless payment solution to enhance financial inclusion.
• The system allows transactions to be conducted without physical debit cards or internet-enabled devices.
• Users can access services such as withdrawals, transfers, and bill payments using basic mobile phones and Smart Payment System (SPS) terminals.
• The initiative leverages a network of over 100,000 touchpoints across the country to reach underserved and unbanked populations.
• The partnership aims to reduce the need for rural residents to travel long distances to physical bank branches.

Main Story

In a strategic move to bridge the gap in digital financial access, UBA, MTN MoMo, and the fintech firm RedTech have signed a Memorandum of Understanding to deploy an offline-capable payment system.

This collaboration targets the millions of Nigerians who lack smartphones or stable data connections, allowing them to utilize MoMo wallets at SPS-enabled terminals.

By integrating global fintech capabilities with extensive local ecosystems, the partners aim to simplify the payment experience across Africa and other emerging markets.

UBA and MTN MoMo highlighted that the solution is designed to operate beyond traditional banking channels, utilizing a massive agent network to reach remote communities.

The initiative is described as a historic convergence of telecommunications and banking infrastructure, ensuring that financial services are accessible regardless of a user’s location or device type.

This system effectively unlocks access to a broader range of financial services for those previously excluded from the digital economy.

The Issues

• Large segments of the population remain “underserved and unbanked” due to a lack of digital infrastructure.
• Residents in “rural areas” often face long-distance travel to access traditional bank branches.
• Traditional digital banking often relies on “card or data service,” which many potential users do not possess.
• Previous efforts to expand inclusion have sometimes struggled due to a lack of “historic convergence” between banks and telcos.

What’s Being Said

• “This collaboration brings together global fintech capabilities and strong local ecosystems to expand access to financial services.” — Emmanuel Ojo, CEO of RedTech

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• “We are extending our ecosystem to ensure that anyone with a MoMo wallet can walk up to a terminal and carry out transactions seamlessly.” — Omolara Michael-Nwandu, Acting CEO of MTN MoMo
• “This is about simplifying payments and making financial services accessible to everyone, regardless of location or device.” — Kayode Olubuyi, Group Head of Digital Marketing, UBA
• The initiative is a “historic convergence” of key players working to transform payment experiences.

What’s Next

• The partners will continue to leverage “agent networks” to deepen reach into remote communities.
• Increased rollout of “SPS-enabled devices” across the 100,000 planned touchpoints.
• Stakeholders will track how effectively the solution bridges the gap for the “unbanked populations”.
• RedTech plans to use this model to “transform payment experiences across Africa” and other markets.

Bottom Line

UBA, MTN MoMo, and RedTech are bypassing the need for cards and internet data by using a 100,000-point terminal network to bring essential banking services to basic phone users in rural Nigeria.