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Today: Jun 14, 2024

Mastercard boosts MTN’s fintech with a dash of investment power

1 min read

TL;DR:

– Mastercard has acquired a minority stake in MTN Group’s fintech business.
– The acquisition involves an investment of up to $200 million into MTN Group Fintech, with a valuation of $5.2 billion.
– The deal is expected to accelerate the growth of MTN’s fintech business and expand its mobile money platform, MoMo.

Global payment-technology company Mastercard has acquired a minority stake in South African telecoms company MTN Group’s fintech business. The deal, valued at $5.2 billion, involves an investment of up to $200 million into MTN Group Fintech. This acquisition is expected to support the growth of MTN’s fintech services, including its mobile money platform, MoMo. The deal is subject to customary closing conditions.

MTN Group will use the investment to expand its fintech business and strengthen its position in the telecoms industry. The company is also looking to separate its financial services division. The deal is part of a larger commercial relationship between MTN Group and Mastercard, aimed at developing technology and infrastructure to drive financial inclusion in Africa.

The financial details of the deal were not disclosed, but Mastercard’s investment amount is expected to be disclosed later. MTN Group’s fintech business includes services such as insurance offerings, airtime lending, ecommerce, and network solutions.

Overall, the acquisition of a minority stake in MTN Group’s fintech business by Mastercard is expected to accelerate the growth of MTN’s fintech services and strengthen its position in the telecoms industry. The deal will also support the development of technology and infrastructure to drive financial inclusion in Africa.