The South African Communication Giant, MTN Group, yesterday, scrapped its local mobile money business because of it's high cost of operation.

The MTN Group issued a statement in Johannesburg, saying the money money business was no longer viable in a country where around three quarters of the population already had a bank account.

Adding that the costs of providing a mobile money platform has become prohibitive. Our decision did not mean a complete exit from financial services, MTN said.

The group said they are still committed to remaining a significant player in the financial services space and will keep exploring opportunities in financial services space and other adjacent sectors.

The mobile money service was launched in South African in 2012 after the success of Safaricom’s M-Pesa in East Africa convinced some executives the service was the industry’s next growth area.

The MTN Group has now joins Vodacom in abandoning the service in South Africa.

It will be recall that the mobile money services have gain large popularity in some other parts of Africa.

The mobile money services is mostly used where people have less access to bank accounts for their transactions.

(NAN)

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