Global financial services firm Mastercard has acquired a minority stake in the Fintech business of MTN Group Limited, the South African multinational corporation and mobile telecommunications provider.
Let's go deeper: MTN's CEO indicated last year that the company was willing to sell 30% of the fintech startup on a cash and debt-free basis, making it appealing to investors.
- MTN's Fintech business has grown with over 16 mobile businesses and is growing in partnerships and new opportunities with over $221.3 billion worth of transactions in 2022.
- The business unit is also making a big play for Africa's $56 billion remittance market, with $2.2 billion worth of remittances processed in 2022 and building a presence in 10 African countries with its remittance and business services products.
In the numbers: Its revenue has been growing steadily by 21.7% year-on-year, driven by growth in its digital wallet product ( +20.7%), remittance services (+78.9%) and payments (+54.9%).
The bottom line: Mastercard's investment brings the needed technological infrastructure to drive improvement in the continent's payment industry. The payment company seems to be betting on Africa with the recently announced investments in three Africa-focused investment firms: Chui Ventures, VestedWorld, and SME Impact Fund.