PriyaPatelTips:
- Mastercard has invested $200 million (R3.8 billion) into MTN’s fintech business.
- The investment values the fintech business at $5.2 billion, implying about a 3.8% stake.
Mastercard has invested $200 million (R3.8 billion) into MTN’s fintech business, according to an announcement made by Africa’s largest mobile operator. The investment will help drive financial inclusion and values the fintech business at $5.2 billion, implying a 3.8% stake. MTN has been actively seeking strategic partners for its fintech business, and the $200 million investment will complement the larger commercial relationship between the two companies. Fintech includes MTN’s mobile money (MoMo) platform, insurance, airtime lending, and e-commerce. However, the company is also considering selling up to 30% of its fintech business. The investment from Mastercard comes as banks and financial services providers are looking to enter the African market to tap into the growing youth population and explore new technologies to bridge the gaps in access to financial services. Mastercard, valued at more than R8 trillion, operates in over 200 countries and territories. MTN is valued at about R176 billion and its fintech business contributed nearly a tenth of the company’s first half earnings in 2024. The investment is expected to support the continued growth and development of technology and infrastructure for MTN’s fintech business. Overall, the partnership between MTN and Mastercard aims to accelerate fintech services, including payments and remittance services, in Africa.
