Mastercard and MTN yesterday announced a strategic partnership to enable millions of consumers in 16 countries across Africa to make global e-commerce payments safely and securely.
The partnership between Mastercard and MTN will enable millions of MTN customers to pay on global online platforms with a Mastercard virtual payment solution linked to MTN MoMo wallet. Consumers and merchants, through a Mastercard virtual payment solution linked to MTN MoMo (Mobile Money) wallets, can engage with brands and businesses abroad through digital commerce, extending their reach to an international marketplace and unlocking a host of opportunities.
Mobile devices are the primary channel used to connect to the internet across Sub-Saharan Africa. It is estimated that there will be 300 million more people using their devices to access internet services by 2025 according to GSMA. In light of this significant growth, mobile financial services in Sub-Saharan Africa have become the dominant form of digital payments, with twice as many mobile money accounts as bank accounts in the region. Thus, consumers increasingly expect to a broader range of digital financial services to be accessible to them.
However, consumers and merchants can only have access mostly to a local base of online and offline businesses, limiting customers’ ability to engage in global commerce. Through this strategic partnership, MTN customers with a Mastercard virtual payment solution linked to their MoMo wallets can make payments to global online merchants through a seamless and secure digital payment experience on websites and mobile applications. Whether or not the customer has a bank account is not an issue as the service is available regardless of that. Mastercard’s technology will enable new digital commerce opportunities for consumers and merchants with or without a bank account, through a simple and secure payment experience.
The solution will enable consumers to explore and shop at well-known global e-commerce brands and pay quickly and securely for leisure shopping, travel, accommodation, entertainment, streaming services and more. It will also allow small business owners to purchase from suppliers abroad and pay with the virtual payment solution.
Speaking about the partnership, MTN Group Chief Digital and Fintech Officer Serigne Dioum said: “We are very excited about this partnership with Mastercard, which is another step in realizing our ambition to build Africa’s largest fintech platform, accelerating economic and social development through digital innovation to the benefit of citizens across the continent and beyond.”
“This noteworthy partnership is another step to enable our customers to participate in the global economy. We are resolute that accelerated financial inclusion is a potent enabler of socio-economic development that empowers the most vulnerable in society,” he concluded.
Amnah Ajmal, Executive Vice President for Market Development, Mastercard Middle East and Africa, said: “This significant milestone will enable millions of MTN customers to benefit from global digital commerce and drive digital and financial inclusion across Africa through easy and secure access to financial services.
“At Mastercard, our innovation strategy is based on partnerships and collaboration. This agreement with MTN shows that we can deliver innovative digital solutions that have a far-reaching impact and realize the true potential of inclusive growth across the continent. Partnering with MTN allows us to accelerate our global pledge to connect 1 billion people to the digital economy by 2025, bringing us closer to a world beyond cash.”
MTN and Mastercard first launched the digital payment solution in 2018 for MoMo customers. The company will extend the virtual payment solution offering throughout its Fintech footprint. The expansion of this payment solution will play a significant role in driving the growth of digital inclusion and e-commerce, increasing MTN MoMo customer inclusion into the global economy.
MTN's MoMo, initially designed to facilitate the transfer of cash between mobile users, now has much broader offerings – including loans, insurance, remittances and payments.
About MTN Group:
Launched in 1994, the MTN Group is a leading emerging market operator with a clear vision to lead the delivery of a bold new digital world to our customers. We are inspired by our belief that everyone deserves the benefits of a modern connected life. The MTN Group is listed on the JSE Securities Exchange in South Africa under the share code ‘MTN’. We have a major focus on growing our fintech and digital businesses in Africa. www.mtn.com
Mastercard is a global technology company in the payments industry. Our mission is to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible. Using secure data and networks, partnerships and passion, our innovations and solutions help individuals, financial institutions, governments and businesses realize their greatest potential. Our decency quotient, or DQ, drives our culture and everything we do inside and outside of our company. With connections across more than 210 countries and territories, we are building a sustainable world that unlocks priceless possibilities for all. www.mastercard.com