In a recent development, Mastercard has invested $200 million to acquire a minority stake in MTN’s fintech division. This comes six months after the payments giant announced its plans to acquire a stake in MTN MoMo. The investment will give Mastercard a 3.8% stake in MTN Group Fintech, which will be worth $5.2 billion after the transaction. The deal is aimed at promoting financial inclusion across the African continent through technological development and growth. MTN Group is looking to expand its fintech business and separate its financial services division. The partnership with Mastercard will help accelerate payments and remittance services in MTN’s fintech business. The telco also intends to pursue additional collaborations and investments with strategic partners. MTN’s fintech division, which includes the mobile money platform MTN MoMo, insurance services, airtime lending, eCommerce, and network offerings, has been gaining traction in the market and reported a 21.7% increase in revenue in its provisional financial results for the first half of 2023. In addition to the investment from Mastercard, MTN has also announced plans to extend its partnership with Ericsson to improve mobile financial services in Africa.
Mastercard’s $200 million fuels fintech growth with MTN partnership.
