MTN, Africa’s largest mobile operator, has announced that global payment company Mastercard is investing up to $200 million in its fintech business.
The telecoms company disclosed this in a statement shared today, revealing that definitive agreements detailing the transaction with Mastercard were signed yesterday.
The transaction values MTN Group Fintech at $5.2 billion on a cash and debt-free basis, as reported by Mybroadband in South Africa. As a result, Mastercard will acquire a minority stake of approximately 3.8% in the business with the $200 million investment.
The partnership between Mastercard and MTN aims to enhance MTN’s fintech capabilities and reach, providing opportunities for expansion into new markets and segments such as e-commerce, remittances, and cross-border payments. Mastercard will leverage its global network, technology, and expertise to support MTN’s digital transformation and innovation agenda.
MTN’s fintech unit, operating under the brand name MTN Mobile Money (MoMo), serves over 46 million customers across 21 markets in Africa and the Middle East. MoMo offers mobile financial services and digital solutions, including money transfers, bill payments, airtime purchases, insurance, loans, and savings products.
The partnership is expected to complement MTN’s larger commercial relationship, driving financial inclusion and supporting the development of technology infrastructure across Africa.
It will also enable MTN’s customers to access Mastercard’s products and services, such as virtual cards, QR codes, contactless payments, and digital wallets, facilitating their participation in the global digital economy.
The investment offer was initially announced on August 14, 2023, with MTN Chief Executive Officer, Ralph Mupita, expressing expectations for the signing of definitive investment agreements in the near term.
Now, six months later, the transaction is being consummated, reflecting strong investor confidence as evidenced by the rise in MTN share prices following the announcement.
