MTN Group Fintech, the financial services arm of African mobile network operator MTN Group, has partnered with Mastercard to launch a prepaid virtual card for its MoMo wallet customers.
The two companies have signed a multi-market agreement to enable a new collaboration focused on providing individuals and small businesses across Africa with access to digital tools.
The agreement follows Mastercard’s recent minority investment into MTN Group Fintech
The collaboration will help MoMo customers transact through secure mobile payments, expanding access to the benefits of the cashless digital economy.
It will impact African 13 markets, Benin, Cameroon, Cote d’Ivoire, Eswatini, Ghana, Liberia, Nigeria, Republic of Congo, Republic of Guinea, Rwanda, South Africa, Uganda, and Zambia.
The partnership is expected to strengthen local infrastructure for digital payments, help expand transactions in the future and drive financial inclusion.
Mastercard EEMEA market development executive vice president Amnah Ajmal said: “Our innovation strategy is based on collaboration. We are very proud of our partnership with MTN which will enable digital commerce for millions of people in Africa.
“In addition, mobile money solutions can be greatly beneficial for SMEs, enabling growth through seamless commercial operations, wider payments acceptance, access to affordable credit, and secure digital tools.”
Under the collaboration, a virtual and physical Mastercard companion card will be issued to each MoMo wallet, facilitating user access to over 100 million acceptance locations worldwide.
Mastercard will also provide its cybersecurity solutions to MTN’s operations, to help enhance customer loyalty and trust.
The partnership will allow SMEs with payments acceptance solutions such as Mastercard’s SME-in-a-Box, to move their businesses online and accept digital payments from customers.
It enables SME owners to set up an e-commerce shopfront, including QR enablement, Tap on Phone solutions and digital card acceptance.
Also, the partnership will provide consumers with expanded reach for mobile money remittance services, both inward and cross-border remittances in Africa.
MTN Group Fintech CEO Serigne Dioum said: “When there is a mutual vision – in this case to bring access, progress, financial inclusion, and prosperity to people – the road to partnership is a simple one.
“We look forward to working with Mastercard as a partner that is also committed to the enablement of more people and businesses through the collaboration into best-in-class apps, superior user experiences, safe transactions, secure remittances, new use cases, and expanded acceptance.”
