MTN Group and Mastercard have inked a multi-market agreement poised to usher in a new era of collaboration, connecting millions of individuals and small businesses across Africa with digital tools for secure mobile payments.
This strategic partnership will impact 13 markets in Africa, including Benin, Cameroon, Cote d’Ivoire, Eswatini, Ghana, Liberia, Nigeria, the Republic of Congo, the Republic of Guinea, Rwanda, South Africa, Uganda, and Zambia. With MTN boasting an overall subscriber base of 290 million and 60 million active monthly MoMo (Mobile Money) wallets, the agreement holds significant potential for transforming financial transactions in the region.
The collaboration leverages Mastercard’s cutting-edge technology and capabilities to support MTN’s ambition of becoming Africa’s premier fintech platform for both merchants and consumers. This development follows Mastercard and MTN’s recent minority investment agreement in MTN Group Fintech, the digital financial services arm of Africa’s largest mobile network operator.
Under the agreement, a virtual and physical Mastercard companion card will be integrated into every MoMo wallet, granting users access to over 100 million acceptance locations globally, thus enabling MTN to scale up its operations internationally. Furthermore, Mastercard will provide its cybersecurity solutions to enhance customer loyalty and trust.
The partnership will also empower SMEs with payment acceptance solutions such as Mastercard’s SME-in-a-Box, enabling small business owners to transition their operations online and accept various digital payments from customers. This initiative aims to enhance customer experience, reduce business costs, and foster growth and innovation.
Amnah Ajmal, Executive Vice President, Market Development EEMEA at Mastercard, emphasized the significance of collaboration in driving innovation, expressing pride in the partnership with MTN to enable digital commerce for millions of people in Africa. She highlighted the benefits of mobile money solutions for SMEs, enabling growth through seamless operations, wider payment acceptance, access to affordable credit, and secure digital tools.
Serigne Dioum, Group CEO of MTN Fintech, underscored the partnership’s role in facilitating secure digital payments for individuals and businesses across Africa, emphasizing a mutual commitment to financial inclusion and prosperity.
Africa’s financial inclusion landscape presents significant opportunities for growth, with over 1.3 billion people on the continent, yet only 43% banked. Mobile money accounts for 45% of the total population, indicating the potential for digital payments to bridge the financial inclusion gap.
Over the past five years, Mastercard and MTN have collaborated on various mobile money programs across Africa, facilitating payments through global platforms and bringing more people into the financial mainstream. This partnership signifies a concerted effort to drive digital transformation and financial inclusion across the continent.
