Mastercard and MTN Group Fintech (MTN MoMo) have signed a multi-market agreement that will set in motion a new era of collaboration to connect millions of people and small businesses across Africa with digital tools to transact through secure mobile payments, expanding access to the benefits of the cashless digital economy. Some of these digital benefits will include a prepaid virtual card within MTN’s Mobile Money (MoMo) ecosystem.
The partnership will use Mastercard’s cutting-edge technology and capabilities to support MTN’s ambition to become Africa’s largest fintech platform for merchants and consumers. This follows Mastercard and MTN’s recent agreement for a minority investment into MTN Group Fintech (MTN MoMo).
Africa is home to over 1.3 billion people; only about 43% are banked, with over 90% of all payments and transactions made via cash. And of the total population, 45% have mobile money accounts. Over the past five years, Mastercard and MTN have joined together to support several mobile money programs across Africa, helping people to make payments through global platforms, thus bringing more people into the financial mainstream.
Speaking on the latest agreement, MasterCard’s Executive Vice President, Market Development EEMEA, Amnah Ajmal, said, “Our innovation strategy is based on collaboration. We are very proud of our partnership with MTN, which will enable digital commerce for millions of people in Africa. In addition, mobile money solutions can be greatly beneficial for SMEs, enabling growth through seamless commercial operations, wider payment acceptance, access to affordable credit, and secure digital tools.”
With MTN’s overall subscriber base at 290 million and 60 million active monthly MoMo (Mobile Money) wallets, the agreement will impact over 13 markets in Africa, including Nigeria, Benin, Ghana, Cameroon, Cote d’Ivoire, Eswatini, Liberia, Republic of Congo, Republic of Guinea, Rwanda, South Africa, Uganda, and Zambia.
