Mastercard has announced an extended commercial partnership with Smile ID to accelerate the rollout of secure digital identity solutions across the continent. This collaboration aims to make digital transactions safer and more accessible for millions of Africans.
The partnership will enable banks, fintechs, and other financial institutions to onboard new customers faster, reduce fraud, and expand financial access. By combining Mastercard’s global insights and identity technology with Smile ID’s fraud detection capabilities, the two companies are set to tackle Africa’s growing identity fraud and financial inclusion challenges.
With Africa’s digital economy projected to reach $1.5 trillion by 2030, secure identity solutions are crucial. As smartphone use rises, there is an urgent need for reliable verification services that can work across all digital channels. This partnership is designed to meet that need, helping financial service providers comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations while securely bringing more people into the formal financial system.
To demonstrate its long-term commitment, Mastercard has also made a minority investment in Smile ID.
According to Selin Bahadirli, Executive Vice President of Services at Mastercard EEMEA, “This partnership with Smile ID is a pivotal step in advancing digital trust and inclusion across Africa. As fragmented identity systems slow down businesses and lock millions out of the digital economy, Smile ID’s innovative identity platform complements Mastercard’s commitment to fostering secure and inclusive digital ecosystems.”
Through this agreement, Mastercard’s customers, including banks and mobile money operators, will gain access to Smile ID’s advanced verification tools. This will enable:
- Instant, secure onboarding of users across African markets.
- Enhanced fraud detection and prevention, particularly for synthetic identity fraud.
- Compliance with local and international KYC and AML regulations.
- Scalable solutions for cross-border commerce and digital expansion.
Smile ID’s CEO, Mark Straub, noted that synthetic identity fraud costs financial institutions hundreds of millions of dollars each year. “By joining forces with Mastercard, we can help turn the tide,” he said. “As we combine insights and technologies, we can expand opportunities for consumers by giving banks and mobile wallets the confidence to onboard the next 300 million African users securely, in seconds.”