MTN South Africa has agreed with payment giants Mastercard for minority stake investments of up to $200 million in the operator's fintech unit. MTN's fintech unit comprises MTN Mobile Money (MTN MoMo), insurance offerings, airtime lending and e-commerce, and network services. The deal is now subject to customary closing conditions.
Speaking on the deal, MTN has said, "These agreements complement the larger commercial relationship between the group and Mastercard to support the continued development and growth of technology and infrastructure to drive financial inclusion across the African continent."
In March 2022, Inclusion Times reported that MTN sought strategic partnerships by offering minority stakes to investors. In August 2023, it was widely reported that MasterCard sought to acquire a minority stake in the fintech arm of South Africa's MTN.
The transaction with Mastercard comes as MTN Group is expanding its fintech business, which places the telecommunications company on solid ground as it prepares to spin off its financial services division.
MTN adds, "We will continue to explore opportunities for additional partnerships and investments that enhance value, subject to market conditions, with strategic partners and long-term investors."
