Mastercard Incorporated (NYSE:MA) has entered into a multi-market partnership with MTN Group Fintech, aiming to provide advanced digital solutions for African consumers and small businesses, facilitating safe mobile transactions.
This collaboration seeks to strengthen the local infrastructure for digital payments and enhance access to digital commerce across 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. Leveraging Mastercard’s technology and capabilities, the partnership aims to offer a wide range of benefits to MTN’s subscribers and mobile wallet customers.
As part of the agreement, each mobile money (“MoMo”) wallet of MTN will integrate a virtual and physical Mastercard companion card, granting users access to over 100 million acceptance locations worldwide. With MTN boasting 60 million active monthly MoMo wallets and a subscriber base of 290 million, this integration aims to enhance the security and convenience of mobile payments by leveraging Mastercard’s established cybersecurity solutions.
Moreover, the partnership will extend affordable acceptance payment solutions to MTN’s SME clients, enabling them to digitize their operations and accept various digital payments through QR codes, Tap on Phone, and cards. Mobile money solutions hold significant potential for SMEs, offering broader payment acceptance, streamlined operations, increased customer trust, and reduced business costs.
Additionally, consumers in Africa will benefit from expanded mobile money remittance services, including both inward and cross-border remittances. The growing trend of international remittances using mobile money wallets underscores the relevance and timeliness of this initiative.
This collaboration builds upon Mastercard and MTN’s longstanding partnership, which has supported numerous mobile money programs across Africa over the past five years. With Africa’s digitally burgeoning population, comprising over 1.3 billion people, 45% of whom possess mobile money accounts, Mastercard sees an opportune moment to leverage its secure and user-friendly solutions, platforms, and tools.
Collaborations of this nature are expected to stimulate greater utilization of Mastercard’s offerings, resulting in increased revenues from value-added services and solutions. Moreover, Mastercard’s support will aid MTN in its mission to establish itself as the leading fintech platform in Africa.
In terms of stock performance, shares of Mastercard have surged by 35.4% in the past year, outpacing the industry’s growth rate of 25.5%.
Featured Image: Unsplash
