Mastercard, a global technology company in the payments industry has partnered with MTN to enable millions of consumers in 16 countries across Africa to make global e-commerce payments safely and securely, with or without bank accounts.
These payments will be done through a Mastercard virtual payment solution linked to MTN MoMo (Mobile Money) wallets.
MTN and Mastercard first launched the digital payment solution in 2018 for MoMo customers. MTN’s MoMo was initially designed to facilitate the transfer of cash between mobile users but the service has since grown to include loans, insurance, remittances, and payments.
Consumers and merchants can engage with brands and businesses abroad through digital commerce, extending their reach to an international marketplace and unlocking a host of opportunities.
Mobile devices are the primary channel used to connect to the internet across Sub-Saharan Africa. According to GSMA, by 2025, it is estimated that there will be 300 million more people using their devices to access internet services.
In light of this significant growth, mobile financial services have become the dominant form of digital payments, with twice as many mobile money accounts as bank accounts in the region. As a result, consumers increasingly expect to have access to a broader range of digital financial services.
However, consumers and merchants are mostly restricted to a local base of online and offline businesses, therefore curtailing customers’ ability to engage in global commerce.
What this means
- Through this strategic partnership, MTN customers with a Mastercard virtual payment solution linked to their MoMo wallets can make payments to global online merchants through a seamless and secure digital payment experience on websites and mobile applications. The service is available regardless of whether or not the customer has a bank account.
- The solution will enable consumers to explore and shop at well-known global e-commerce brands and pay quickly and securely for leisure shopping, travel, accommodation, entertainment, streaming services, and more.
- It will also allow small business owners to purchase from suppliers abroad and pay with the virtual payment solution.
What they are saying
Speaking on the partnership, Serigne Dioum, MTN Group Chief Digital and Fintech Officer said.
“We are very excited about this partnership with Mastercard, which is another step in realizing our ambition to build Africa’s largest fintech platform, accelerating economic and social development through digital innovation to the benefit of citizens across the continent and beyond,”
“This noteworthy partnership is another step to enable our customers to participate in the global economy. We are resolute that accelerated financial inclusion is a potent enabler of socio-economic development that empowers the most vulnerable in society,” he concluded.
Amnah Ajmal, Executive Vice President for Market Development, Mastercard Middle East and Africa, said:
“This significant milestone will enable millions of MTN customers to benefit from global digital commerce and drive digital and financial inclusion across Africa through easy and secure access to financial services.
“At Mastercard, our innovation strategy is based on partnerships and collaboration. This agreement with MTN shows that we can deliver innovative digital solutions that have a far-reaching impact and realize the true potential of inclusive growth across the continent. Partnering with MTN allows us to accelerate our global pledge to connect 1 billion people to the digital economy by 2025, bringing us closer to a world beyond cash.”
What you should know
- MTN, the largest mobile network operator, is the ‘Most Admired African Brand’ based on spontaneous consumer responses in Brand Africa 100: Africa’s Best Brands 2020 survey and the most valuable telecoms brand in Africa by Brand Finance Africa.
- The company will extend the virtual payment solution offering throughout its Fintech footprint. The expansion of this payment solution will play a significant role in driving the growth of digital inclusion and e-commerce thus increasing MTN MoMo customer inclusion into the global economy.
- This Collaboration underpins a new wave of financial inclusion through mobile devices, unlocking opportunities for millions of people across Africa.