Mastercard, Financial services firm, has acquired a minority stake in MTN Group’s fintech business for up to $200 million, valuing the business at $5.2 billion.
MTN Group’s President and CEO, Ralph Mupita, recently stated that the company aims to divest approximately 30% of its fintech business.
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MTN confirms that the transaction was initially announced on August 14, 2023, and is contingent upon customary closing conditions.
MTN’s fintech portfolio encompasses the mobile money platform MoMo, insurance products, airtime lending, e-commerce services, and network solutions.
In its interim financial results for the six-month period ending in June, MTN, Africa’s largest mobile operator, reported robust growth in its fintech division, with revenue surging by 21.7% year-over-year. This growth was primarily driven by increases in wallet transactions (+20.7%), payment and e-commerce (+54.9%), and remittances (+78.9%).
The Mastercard transaction aligns with MTN Group’s strategy to expand its fintech operations, positioning the telecoms company for growth as it prepares to spin off its financial services arm.
MTN highlights that these agreements complement its broader commercial partnership with Mastercard, aimed at bolstering technology and infrastructure to advance financial inclusion across Africa.
MTN further expresses its commitment to exploring additional partnerships and investments with strategic partners and long-term investors, contingent upon market conditions.
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