Banks reconnect MTN to USSD transactions channels

By our reporter| Commercial banks on Sunday reconnected MTN customers to the unstructured supplementary service data (USSD) payment channels.

This followed the decision of the telecom giant to revert discount offered to banks on airtime sales to 4.5 percent commission.

The mobile network operator (MNO) had reduced banks’ commission from an average of 3.5 percent to 2.5 percent, this led to a disagreement between MTN and commercial banks.

But a letter by Karl Toriola, managing director and chief executive officer of MTN Nigeria restored the earlier payment agreement following the intervention of Nigeria’s communication minister Isa Pantami and other stakeholders.

“Our virtual meeting between yourself (Wigwe) and Segun Agbaje (MD of GTBank) on the one hand and myself (Toriola) and Modupe Kadri (chief financial officer of MTN Nigeria) on the other refers,” the letter read.

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“In an attempt to resolve the current USSD recharge impasse, given the interventions from our regulators, we hereby agree The Banks revert to the status quo of 4.5% commission.

“However, the banks and MTN Communications Nigeria Plc, shall sit to agree on various options that will result in the reduction in the costs on 6th of April 2021.”

Commercial banks had asked MTN to reverse its action to the old commission or would block MTN airtime recharge services in both mobile banking applications and unstructured supplementary service data (USSD) payment channels.

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