Mastercard has announced that it has agreed to take a minority stake in the fintech unit of MTN Group.
The deal values MTN’s fintech unit at $5.2 billion, according to a statement by MTN’s CEO Ralph Mupita.
MTN’s fintech unit provides mobile financial services and digital solutions to over 46 million customers across 21 markets in Africa and the Middle East.
The company’s mobile money service (MoMo) enables customers to send and receive money, pay bills, buy airtime, access insurance, loans, and savings products, and shop online using their mobile phones.
MoMo also partners with banks, merchants, and other service providers to offer a range of digital services and platforms.
Mastercard’s investment in MTN’s fintech unit is part of a strategic partnership that aims to enhance MTN’s fintech capabilities and reach.
Mastercard will leverage its global network, technology, and expertise to support MTN’s digital transformation and innovation agenda. Mastercard will also help MTN expand its fintech offerings to new markets and segments, such as e-commerce, remittances, and cross-border payments.
The partnership will also benefit MTN’s customers, who will gain access to Mastercard’s products and services, such as virtual cards, QR codes, contactless payments, and digital wallets.