Mastercard and MTN Group Fintech have signed a groundbreaking multi-market agreement aimed at connecting millions of people and small businesses across Africa with secure mobile payment solutions, thereby expanding access to the benefits of the cashless digital economy.
The partnership leverages Mastercard’s cutting-edge technology and capabilities to support MTN’s vision of becoming Africa’s leading fintech platform for both merchants and consumers. This collaboration follows Mastercard and MTN’s recent agreement for a minority investment into MTN Group Fintech, the digital financial services arm of Africa’s largest mobile network operator.
With an impressive subscriber base of 290 million and 60 million active monthly MoMo (Mobile Money) wallets, this partnership will have a significant impact on 13 African markets, including Benin, Cameroon, Cote d’Ivoire, Eswatini, Ghana, Liberia, Nigeria, Republic of Congo, Republic of Guinea, Rwanda, South Africa, Uganda, and Zambia.
Amnah Ajmal, Executive Vice President, Market Development EEMEA at Mastercard, emphasized the importance of collaboration in their innovation strategy, stating, “We are very proud of our partnership with MTN that 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 payments acceptance, access to affordable credit, and secure digital tools.”
Africa currently has a large unbanked population, with only about 43% of individuals having access to formal banking services. Over 90% of all payments and transactions are still conducted in cash. However, mobile money accounts have gained significant traction, with 45% of the total population having such accounts. Mastercard and MTN have been actively working together over the past five years to support various mobile money programs across Africa, driving financial inclusion and bringing more people into the financial mainstream.
Serigne Dioum, Group CEO of MTN Fintech, highlighted the shared vision of the partnership, stating, “When there is a mutual vision – in this case, to bring access, progress, financial inclusion, and prosperity to people – the road to partnership is a simple one. We look forward to working with Mastercard as a partner that is also committed to the enablement of more people and businesses through collaboration into best-in-class apps, superior user experiences, safe transactions, secure remittances, new use cases, and expanded acceptance.”
The collaboration between Mastercard and MTN will not only strengthen the local infrastructure for digital payments but also support future expansion of transactions and drive financial inclusion by providing access to essential assets.
As part of the partnership, a virtual and physical Mastercard companion card will be added to every MoMo wallet, granting users access to over 100 million acceptance locations worldwide. This will enable MTN to scale up its international operations. Additionally, Mastercard will provide its cybersecurity solutions to MTN’s operations, enhancing customer loyalty and trust.
SMEs will benefit from the partnership through payment acceptance solutions like Mastercard’s SME-in-a-Box. This low-cost payments solution empowers small business owners to transition their businesses online and accept a range of digital payments from customers. SME owners will gain access to e-commerce shopfront setups, QR enablement, Tap on Phone solutions, and digital card acceptance, improving customer experience, reducing business costs, and unlocking new avenues for growth and innovation.
Furthermore, the partnership will expand the reach of mobile money remittance services for consumers, including both inward and cross-border remittances in Africa. International remittances via mobile money wallets experienced a 65% year-over-year growth in 2020, totaling around US$1 billion. Mastercard’s commitment to collaboration with telecommunications network companies aims to make financial inclusion a reality, with a goal of bringing 1 billion people and 50 million SMEs into the global digital economy by 2025.
The partnership between Mastercard and MTN Group Fintech represents a significant step toward driving digital payments and financial inclusion in Africa, empowering individuals and businesses with secure, convenient, and transformative financial solutions.
