Mastercard and MTN have partnered to enable consumers in 16 countries across Africa, to make global ecommerce payments safely and securely.
Through a Mastercard virtual payment solution linked to MTN MoMo (Mobile Money) wallets, consumers and merchants can engage with brands and businesses abroad through digital commerce. This solution will in turn will extend their reach to an international marketplace and unlock a host of opportunities.
In light of mobile device possession and internet access across Sub-Saharan Africa, mobile financial services have become the dominant form of digital payments. There are 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. This has curtailed customers’ ability to engage in global commerce. Through this partnership, MTN customers with a Mastercard virtual payment solution linked to their MoMo wallets can make payments to global online merchants through a digital payment experience on websites and mobile applications. The service is available regardless of whether or not the customer has a bank account.
“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,” said MTN Group Chief Digital and Fintech Officer Serigne Dioum.
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.”
MTN and Mastercard first launched the digital payment solution in 2018 for MoMo customers. 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. This will in turn increase MTN MoMo’s customer inclusion into the global economy.
MTN’s MoMo was initially designed to facilitate the transfer of cash between mobile users. It has so far morphed to be much broader, including loans, insurance, remittances and payments.