Mastercard, one of the world’s leading payments companies, has announced that it will acquire a minority stake in MTN Group’s financial technology business, MTN Fintech, in a $5.2 billion deal.
The transaction, which is expected to close later this year, is part of an ongoing effort by MTN Group to monetise its fintech investments. The sale of a minority stake in MTN Fintech to Mastercard will add to MTN’s existing collection of strategic investments.
MTN Fintech, owned by MTN Group, is a leading provider of digital financial services in Africa and the Middle East. It provides an omnichannel platform for digital payments, money transfer, and financial services. It’s currently available in 14 countries across Africa and the Middle East; with a presence in 20 countries and a total of over 130 million customers.
With the acquisition of a stake in MTN Fintech, Mastercard is looking to bolster its existing capabilities, allowing it to expand its presence and reach in the African and Middle Eastern markets. The partnership will also provide an opportunity for Mastercard to leverage its global capabilities in order to support MTN’s digital transformation ambitions and enable financial inclusion in the regions in which MTN operates.
This latest deal follows on from Mastercard’s 2017 acquisition of a stake in African payments company Verve. It also signals a further commitment to the African market, as Mastercard looks to invest its resources in digital financial solutions that meet the needs of the markets it serves.
The $5.2 billion transaction is expected to close later this year, subject to necessary approvals and conditions being met. In the meantime, Mastercard and MTN Group are continuing their discussions to determine a timeline for completion.