South Africa’s MTN has agreed to sell a minority stake in its mobile money arm to payments giant Mastercard. The deal is aimed at expanding its African fintech business. The second-largest payment-processing corporation worldwide, Mastercard has agreed to take a minority stake in MTN’s financial-technology business, valued at $5.2 billion (R98.71 billion) by the company.
The deal will be structured in two parts, including a commercial agreement on payments and remittance that uses Mastercard’s technology infrastructure to expand in Africa and the investment into a minority stake. The size of the stake will be disclosed when the deal closes.
This move by MTN is part of its broader strategy to expand its fintech business in Africa, where mobile money has become an increasingly important part of the financial landscape. With this partnership, MTN and Mastercard will be able to leverage their respective strengths to provide more convenient and secure payment solutions to customers across the continent.
The deal is expected to close in the coming months, subject to regulatory approvals. It represents a significant step forward for both companies as they seek to expand their presence in the rapidly growing African fintech market.