MultiChoice enters fintech market with innovative payment platform, Moment

MultiChoice Group, the South African media company known for its popular services like DStv and GOtv, is venturing into the fintech market with the launch of a new joint venture called Moment (pdf). This strategic move aims to diversify MultiChoice’s business portfolio and tap into the growing demand for digital payment solutions in Africa.

The joint venture includes investors Rapyd and General Catalyst, and together they will establish Moment as an integrated payment platform for the continent. Some of Moment’s long term service offering include:

• Payments across 40+ countries in Africa through 200+ locally preferred payment methods to collect, disburse and manage risk.
• Drive adoption of PayShap, TCIB, NQR, and other real-time payment methods across all markets.
• Global-Africa trade for importers and exporters with virtual accounts in 40+ currencies and local payments in 130+ countries.
• Payment tools, deep inventory to sell and financial services for micro-entrepreneurs and SMEs.
• Offering consumers payments, savings and rewards.

Its primary objective is to revolutionise the African payments landscape by providing businesses with an advanced and streamlined payment infrastructure. The platform will enable faster, more accessible, and cost-effective transactions tailored to the preferences of buyers and suppliers. With an ambitious plan to connect payments from Africa to the rest of the world, Moment aims to contribute to the economic development of the continent and make it more investment-ready for global players.

One of the key goals of Moment is to reduce the heavy reliance on cash for payments. Currently, 90% of retail transactions in Africa are conducted using cash, presenting a significant opportunity for digital payment adoption. By offering more accessible digital transactions, Moment aims to serve the 350 million consumers who are underbanked or unbanked, thus expanding financial inclusion across the continent.

In the long run, Moment plans to provide payment infrastructure for the 44 million small businesses operating in Africa. This move is expected to drive the digitisation of retail transactions and empower small businesses by facilitating digital payments. Moreover, Moment intends to facilitate global-Africa trade by offering virtual accounts in over 40 currencies and local payments in more than 130 countries, further enhancing cross-border transactions.

The significance of this strategic venture is evident considering the challenges faced by MultiChoice’s core business, DStv. The company has experienced a decline in DStv Premium subscriptions over the years, primarily due to increased competition from streaming platforms and a challenging economic climate. However, MultiChoice’s subsidiary, Showmax, has shown promising growth in recent years, though its financial impact remains undisclosed.

By leveraging Moment’s comprehensive payment network, MultiChoice aims to consolidate the $3.5 billion worth of payments it processes annually. This consolidation will not only enhance the payment experience for subscribers but also drive efficiency in payment processes.

With aspirations to support South Africa’s PayShap and other real-time payment methods, Moment aims to shape the future of digital payments in the region. As MultiChoice thrusts into the fintech sector with Moment, it seeks to position itself as a frontrunner in the evolving payment landscape of Africa.

While the company has faced challenges in recent times, this strategic move demonstrates its determination to adapt and thrive amidst the changing market dynamics. The success of Moment could open new avenues for MultiChoice and solidify its presence in the rapidly growing fintech industry in Africa.

As MultiChoice Group takes this significant step towards diversification, it will be intriguing to observe the impact of Moment on the African payments ecosystem and how it shapes the future of digital transactions in the region.