February 8, 2024

Mastercard Buys $200M Stake In MTN’s Fintech Business

Mastercard has purchased a minority stake in mobile operator MTN Group’s fintech business.

MTN is Africa’s largest mobile network operator, sharing the benefits of a modern connected life with 272 million customers in 19 markets across Africa and the Middle East.

Established in 1994 in South Africa, the company provides voice, data, fintech, digital, enterprise, wholesale, and API services.

Mastercard’s Minority Stake In MTN

Last year, in 2023, Mastercard announced it would purchase a minority stake in the MTN, and now, six months later, they have.

In a statement, MTN said it had signed definitive agreements with Mastercard for a minority investment of up to $200 million (R3.9 billion) into MTN Group Fintech as a valuation of $5.2 billion (R99 billion) on a cash and debt-free basis.

The move would be timely for MTN Group as it searched for investors after parting ways with the carrier’s main telecom business.

Accelerating MTN’s Fintech Business

ITWeb noted that Mastercard aims to accelerate MTN Group’s technology and infrastructure and establish greater financial inclusion in the continent.

According to ITWeb, the company said, “This commercial relationship is a key enabler for the acceleration of our fintech business’ payments and remittance services. “

“MTN will continue to explore opportunities for other value enhancing partnerships and investments, subject to market conditions, with strategic partners and long-term investors.”

The mobile operator explained that its new agreement with Mastercard is consistent with both companies’ ultimate business goal of promoting financial inclusion across the continent through ongoing technological and infrastructure development and growth.

Sara Keenan

Tech Reporter at POCIT. Following her master's degree in journalism, Sara cultivated a deep passion for writing and driving positive change for Black and Brown individuals across all areas of life. This passion expanded to include the experiences of Black and Brown people in tech thanks to her internship experience as an editorial assistant at a tech startup.