This partnership will leverage Mastercard's advanced technology and capabilities to support MTN's goal of establishing itself as Africa's main fintech platform for merchants and consumers. The agreement builds upon the recent investment by Mastercard and MTN Group Fintech, the digital financial services division of Africa's largest mobile network operator.
According to the official press release, the partnership will impact 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.
The collaboration aims to promote digital commerce across Africa, with a particular focus on enhancing opportunities for small and medium-sized enterprises (SMEs). By facilitating seamless commercial operations, better payments acceptance, access to affordable credit, and secure digital tools, mobile money solutions are anticipated to drive SME growth and financial inclusion.
Africa, home to over 1.3 billion people, exhibits a significant gap in banking penetration, with only about 43% of the population banked according to the official press release, Moreover, cash remains the predominant mode of payment, accounting for over 90% of all transactions. However, mobile money accounts have seen considerable uptake, with 45% of the population having access. Over the past five years, Mastercard and MTN have collaborated to support various mobile money initiatives across the continent, aiming to integrate more individuals into the formal financial system.
The partnership will see the introduction of virtual and physical Mastercard companion cards to every MoMo wallet, granting users access to over 100 million acceptance locations globally. This initiative aims to enhance international scalability for MTN and provide users with cybersecurity solutions to bolster trust and loyalty.
The agreement will provide SMEs with payment acceptance solutions, including Mastercard's SME-in-a-Box, facilitating the transition of small businesses to online platforms and enabling them to accept digital payments. By offering ecommerce capabilities, QR enablement, Tap on Phone solutions, and digital card acceptance, this endeavour could potentially improve customer experience, reduce business costs, and support growth and innovation.
Furthermore, consumers will benefit from expanded access to mobile money remittance services, comprising both domestic and cross-border transactions. With the demand for international remittance services on the rise, Mastercard aims to facilitate seamless and secure transactions for MTN's consumer base.
In essence, the collaboration with MTN underscores Mastercard's commitment to providing accessible and secure financial solutions as part of its broader mission to promote financial inclusion worldwide.
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