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    Innovation Village | Technology, Product Reviews, Business
    You are at:Home»Acquisitions»Mastercard acquires a minority stake in MTN’s fintech business

    Mastercard acquires a minority stake in MTN’s fintech business

    1
    By Tapiwa Matthew Mutisi on February 6, 2024 Acquisitions, Business, Financial Services, Fintech, Investments, News, Technology, Telecoms

    Financial services company Mastercard has completed the acquisition of a minority stake in the fintech business of mobile operator MTN Group.

    According to a statement from MTN, the company has signed definitive agreements with Mastercard for a minority investment which could amount to $200 million (R3.8 billion) into MTN Group Fintech, valuing the business at $5.2 billion (R99 billion) on a cash and debt-free basis.

    MTN stated the transaction, which is non-categorised as per JSE listings requirements, was initially announced on 14th August 2023 and is subject to customary closing conditions.

    MTN Group president and CEO Ralph Mupita had previously hinted that the company was considering selling around 30% of its stake in the fintech business.

    MTN’s fintech business comprises its mobile money platform MoMo, insurance offerings, airtime lending and e-commerce, as well as its network services.

    In its interim financial results for the six-month period ending in June, Africa’s largest mobile operator, MTN, reported significant growth in its fintech business. Revenue increased by 21.7% year-over-year, primarily due to growth in the wallet (+20.7%), payment and e-commerce (+54.9%), and remittance (+78.9%) sectors.

    The transaction with Mastercard comes as MTN Group is expanding its fintech business, which places the telecommunications company on solid ground as it prepares to spin off its financial services division.

    The company states that the deals supplement the broader commercial relationship between the MTN Group and Mastercard. This relationship aims to further the development and growth of technology and infrastructure to boost financial inclusion across Africa.

    “This commercial relationship is a crucial driver for accelerating our fintech business’s payments and remittance services,” the company notes.

    MTN adds, “We will continue to explore opportunities for additional partnerships and investments that enhance value, subject to market conditions, with strategic partners and long-term investors.”

    Related

    Acquisition acquisitions Africa Business financial services fintech Investments Mastercard MTN Group Technology
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    Tapiwa Matthew Mutisi
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    Tapiwa Matthew Mutisi has been covering blockchain technology, intelligent technologies, cryptocurrency, cybersecurity, telecommunications technology, sustainability, autonomous vehicles, and other topics for Innovation Village since 2017. In the years since, he has published over 4,000 articles — a mix of breaking news, reviews, helpful how-tos, industry analysis, and more. | Open DM on Twitter @TapiwaMutisi

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    1. Pingback: Ghanaian B2B commerce startup, Boost, collaborates with Mastercard to empower small businesses - Innovation Village | Technology, Product Reviews, Business

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