Mastercards for MTN’s mobile money platform users
Mastercard and MTN Group Fintech have inked a landmark deal aimed at equipping all MTN MoMo customers with payment cards, as announced in a joint statement on Thursday.
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This collaboration will usher in both virtual and physical Mastercard companion cards for every MoMo wallet, granting users access to a vast network of over 100 million acceptance locations worldwide.
The strategic partnership leverages Mastercard's state-of-the-art technology and expertise to bolster MTN's vision of becoming Africa's premier fintech platform, catering to both merchants and consumers. This initiative follows closely on the heels of Mastercard and MTN's recent pact involving a minority investment in MTN Group Fintech, the digital financial services arm of Africa's largest mobile network operator, a deal finalized earlier this month.
The newly introduced cards will be extended to all 60 million active monthly MoMo wallets across 13 countries where the mobile money service operates, including South Africa, Benin, Cameroon, Cote d'Ivoire, Eswatini, Ghana, Liberia, Nigeria, Republic of Congo, Republic of Guinea, Rwanda, Uganda, and Zambia.
By bringing together the expansive reach of MTN's mobile money platform with Mastercard's robust payment solutions, this collaboration aims to bridge the gap between millions of individuals and small businesses in Africa, offering them access to secure mobile payments and the myriad benefits of a cashless digital economy.
With only 43% of Africa's population currently banked and over 90% of transactions conducted in cash, this partnership seeks to fortify local digital payment infrastructure, foster financial inclusion, and catalyze economic growth, particularly for SMEs. Mobile money solutions, coupled with Mastercard's offerings, present SMEs with opportunities for expansion, including setting up e-commerce platforms, enabling QR payments, Tap-on-Phone solutions, and digital card acceptance.
Both Mastercard and MTN underscored the pivotal role of this collaboration in providing enhanced user experiences, secure transactions, and expanded payment acceptance capabilities. Furthermore, Mastercard's cybersecurity solutions will be integrated into MTN's operations, bolstering customer confidence and loyalty.
In addition to empowering local businesses and individuals, the partnership will facilitate the growth of international remittance services, addressing the escalating demand for cross-border transactions across Africa. With daily remittance transactions exceeding US$2 billion, the collaboration aims to tap into the burgeoning market, which saw a 65% year-over-year surge in mobile money wallet remittances in 2020, totaling approximately US$1 billion.
