Through this partnership, MTN will be able to further its objective of being the primary fintech platform in Africa for both consumers and merchants by utilising Mastercard's cutting-edge technology and capabilities. The deal expands on the recent investments made by MTN Group Fintech, the digital financial services arm of the biggest mobile network operator in Africa, and Mastercard.

13 African markets—Benin, Cameroon, Cote d'Ivoire, Eswatini, Ghana, Liberia, Nigeria, Republic of Congo, Republic of Guinea, Rwanda, South Africa, Uganda, and Zambia—will be impacted by the agreement, according to the official news release.

The partnership seeks to advance digital trade throughout Africa, with an emphasis on expanding prospects for small and medium-sized businesses (SMEs). Mobile money solutions are expected to propel SME growth and financial inclusion by enabling smooth business operations, improved payment acceptance, easily accessible credit, and safe digital tools.

The development of banking in Africa

With over 1.3 billion people living there, only over 43% of Africans are banked, according to the official news release. This indicates a substantial disparity in banking penetration. Furthermore, cash still makes up more than 90% of all transactions, making it the most common form of payment. 45% of people have access to mobile money accounts, indicating a significant acceptance in this financial service. In an effort to bring more people into the formal financial system, Mastercard and MTN have been working together to promote a number of mobile money initiatives throughout the continent for the past five years.

Through the arrangement, every MoMo wallet will receive both virtual and physical Mastercard companion cards, giving customers access to more than 100 million acceptance sites worldwide. Through this project, MTN hopes to improve its international scalability and offer cybersecurity solutions to its users, which will increase their trust and loyalty.

The collaboration would help small businesses migrate to online platforms and enable them to accept digital payments by giving them access to payment acceptance solutions, such as Mastercard's SME-in-a-Box. This project may enhance customer satisfaction, lower operating expenses, foster growth and innovation, and enable digital card acceptance in addition to providing e-commerce and QR enablement and Tap on Phone features.

Customers will also gain from easier access to mobile money remittance services, which include both domestic and international transactions. Mastercard wants to make transactions easy and safe for MTN's customer base because the need for international remittance services is growing.

As part of its larger goal to promote financial inclusion globally, Mastercard is committed to offering secure and easily accessible financial solutions, which is essentially what the partnership with MTN highlights.