Global leader payment solutions provider, Mastercard Inc. has agreed to acquire a minority stake in the fintech unit of MTN Group, valued at $5.2 billion.
“Signing of the definitive investment agreements is expected to occur in the very near term,” MTN Chief Executive Officer Ralph Mupita said in a statement on Monday.
Over 46 million clients in 21 markets in Africa and the Middle East can access mobile financial services and digital solutions from MTN’s fintech division, which goes by the moniker MTN Mobile Money.
Customers of MoMo can use their mobile devices to send and receive money, pay bills, purchase airtime, access insurance, loans, and savings products, and shop online.
In order to deliver different digital services and platforms, the fintech also collaborates with banks, retailers, and other service providers.
The investment by Mastercard in MTN’s fintech division is a component of a strategic alliance that intends to expand MTN’s fintech skills and reach.
To support MTN’s digital transformation and innovation ambition, Mastercard will draw on its extensive global network, cutting-edge technology, and industry knowledge. Additionally, Mastercard will assist MTN in extending its fintech services to new markets and industry sectors like e-commerce, remittances, and international payments.