MTN, MasterCard launch MoMo virtual card for African markets
Africa
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29 Feb 2024
MasterCard and MTN Group continue to deepen their relationship as they jointly unveiled a prepaid virtual card, targeted at the telco's Mobile Money (MoMo) users
The deal will allow MoMo users to transact at over 100 million points globally, while enabling smaller merchants to accept card payments, enhancing the MoMo platform's instant cross-border money remittance services and capabilities.
The two companies have, in recent weeks, been broadening their partnership following MasterCard’s acquisition of a stake in MTN’s ballooning fintech business.
The partnership, announced today, aims to enhance MTN's mobile money ecosystem in 13 African countries, namely: Benin, Cameroon, Cote d'Ivoire, Eswatini, Ghana, Liberia, Nigeria, the Republic of Congo, the Republic of Guinea, Rwanda, South Africa, Uganda, and Zambia.
The deal comes as demand for international remittance services is growing, with more than $2 billion processed in daily transactions, which is equivalent to more than 40% of the GDP of Sub-Saharan Africa, according to McKinsey.
In its ‘Future of payments in Africa’ research, McKinsey notes that international remittances via mobile-money wallets grew by 65% year on year in 2020 to around $1 billion, with no signs of slowing.
Today, according to a company statement, as a result of the deal announced, MasterCard would be able to provide cybersecurity solutions to the MTN’s operations.
The partnership will also provide SMEs with payment acceptance options, such as Mastercard's SME-in-a-Box, which “enables small business owners to move their businesses online and accept a range of digital payments from their customers”.
According to MTN, SME owners will now have access to solutions that allow them to create an e-commerce shopfront, such as QR code enablement, tap-on-phone solutions, and digital card acceptance.
Serigne Dioum, Group CEO, MTN Fintech, says: “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.”
Dioum adds that the collaboration should provide safe transactions, secure transfers, new use cases, and extended acceptance.
Amnah Ajmal, executive vice president, market development EEMEA, MasterCard says: “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 tool.”
As a result, Ajmal argues that MasterCard's innovation strategy is centred on collaboration, and that partnering with MTN would allow millions of Africans to participate in digital commerce.