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February 6, 2024

$200m Mastercard investment fuels MTN fintech unit valued at $5.2bn.


Mastercard is investing $200 million in MTN’s fintech unit, valuing the business at $5.2 billion. The investment will give Mastercard a minority stake of about 3.8% in the company. MTN plans to use the funds to boost its valuation and improve its balance sheet. The partnership with Mastercard will also support the development of technology infrastructure for financial inclusion in Africa. The transaction was completed six months after the initial announcement.

Africa’s largest mobile operator, MTN, has secured a $200 million investment from Mastercard for its fintech unit. The deal values MTN’s fintech business at $5.2 billion. Mastercard will take a minority stake of 3.8% in the company. The investment will boost MTN’s valuation and improve its balance sheet. MTN plans to raise $1.3 billion from asset sales, with the most recent disposals being the sale of its South African mobile phone towers and West African assets.

The partnership with Mastercard will support the development of technology infrastructure for financial inclusion in Africa. MTN’s fintech unit, known as MTN Mobile Money (MoMo), provides mobile financial services and digital solutions to over 46 million customers across 21 markets in Africa and the Middle East. MoMo enables customers to send and receive money, pay bills, buy airtime, access insurance, loans, and savings products, and shop online using their mobile phones. The fintech unit also partners with banks, merchants, and other service providers to offer various digital services and platforms.

Mastercard’s investment in MTN’s fintech unit is part of a strategic partnership to enhance MTN’s fintech capabilities and reach. Mastercard will leverage its global network, technology, and expertise to support MTN’s digital transformation and innovation agenda. The partnership will also help MTN expand its fintech offerings to new markets and segments, such as e-commerce, remittances, and cross-border payments. MTN’s customers will gain access to Mastercard’s products and services, such as virtual cards, QR codes, contactless payments, and digital wallets, enabling them to participate in the global digital economy and access new opportunities.