[ 2021-02-25 ]

Mastercard and MTN partner to enable customers pay on global online platforms
The MTN Group and Mastercard has announced a
strategic partnership to enable consumers in 16
countries across Africa to make global e-commerce
payments safely and securely.
“Through a Mastercard virtual payment solution
linked to MTN MoMo (Mobile Money) wallets,
consumers and merchants can engage with brands and
businesses abroad through digital commerce,
extending their reach to an international
marketplace and unlocking a host of
opportunities,” it said.



A joint statement issued by the MTN Group and
Mastercard said across Sub-Saharan Africa, mobile
devices were the primary channel used to connect
to the internet and that according to GSMA, by
2025, it was estimated that there would be 300
million more people using their devices to access
internet services.

“In light of this significant growth, mobile
financial services have become the dominant form
of digital payments, with twice as many mobile
money accounts as bank accounts in the region. As
a result, consumers increasingly expect to have
access to a broader range of digital financial
services,” it stated.

The statement said, however, consumers and
merchants were mostly restricted to a local base
of online and offline businesses, therefore
curtailing customers’ ability to engage in
global commerce.

It said through this strategic partnership, MTN
customers with a Mastercard virtual payment
solution linked to their MoMo wallets can make
payments to global online merchants through a
seamless and secure digital payment experience on
websites and mobile applications and that the
service was available regardless of whether or not
the customer has a bank account.



The statement said the solution would enable
consumers to explore and shop at well-known global
e-commerce brands and pay quickly and securely for
leisure shopping, travel, accommodation,
entertainment, streaming services and more.

It would also allow small business owners to
purchase from suppliers abroad and pay with the
virtual payment solution.

“We are very excited about this partnership with
Mastercard, which is another step in realizing our
ambition to build Africa’s largest fintech
platform, accelerating economic and social
development through digital innovation to the
benefit of citizens across the continent and
beyond,” the MTN Group said.


It added that “This noteworthy partnership is
another step to enable our customers to
participate in the global economy. We are resolute
that accelerated financial inclusion is a potent
enabler of socio-economic development that
empowers the most vulnerable in society.”

The Mastercard said: “This significant milestone
will enable millions of MTN customers to benefit
from global digital commerce and drive digital and
financial inclusion across Africa through easy and
secure access to financial services.



“At Mastercard, our innovation strategy is based
on partnerships and collaboration. This agreement
with MTN shows that we can deliver innovative
digital solutions that have a far-reaching impact
and realize the true potential of inclusive growth
across the continent.

“Partnering with MTN allows us to accelerate our
global pledge to connect 1 billion people to the
digital economy by 2025, bringing us closer to a
world beyond cash,” it said.

The MTN and Mastercard first launched the digital
payment solution in 2018 for MoMo customers. MTN,
the largest mobile network operator, is the
‘Most Admired African Brand’ based on
spontaneous consumer responses in Brand Africa
100: Africa’s Best Brands 2020 survey and the
most valuable telecoms brand in Africa by Brand
Finance Africa.

The company will extend the virtual payment
solution offering throughout its Fintech
footprint. The expansion of this payment solution
will play a significant role in driving the growth
of digital inclusion and e-commerce thus
increasing MTN MoMo customer inclusion into the
global economy.

Initially designed to facilitate the transfer of
cash between mobile users, MTN’s MoMo offering
is now much broader – including loans,
insurance, remittances and payments.

Source - Graphic Online

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