MasterCard is set to provide digital payment wallets in Ghana. This said collaboration between Ghana’s Boost and MasterCard will help provide seamless payments across the country and region.
MasterCard Digital Payment Wallets in Ghana
Boost, a Ghanaian B2B commerce platform established in 2020, has recently joined forces with Mastercard to introduce digital payment wallets and supply chain financing options. This collaboration is designed to support retail entrepreneurs who are navigating the challenges of the convenience sector. With Mastercard’s backing, Boost aims to equip distributors, wholesalers, and retailers with the necessary financial resources to thrive.
The strategy involves integrating Mastercard’s payment solutions directly into Boost’s platform, offering a seamless financial service experience. This partnership extends beyond mere profit generation; it’s about providing a crucial support system for small businesses through accessible digital payment and credit services. This initiative not only benefits the businesses involved by ensuring they can maintain and grow their operations, but it also promises an enhanced shopping experience for consumers, with more products available on shelves and a variety of convenient payment methods.
MasterCard Buys a Minority Stake in MTN Fintech Business
MasterCard has made a significant move by investing $200 million to acquire a 3.8% stake in MTN’s fintech division, MTN MoMo. This strategic investment marks a noteworthy collaboration between the global payments leader and the telecommunications giant’s financial technology arm, underscoring the growing interest and value in the fintech sector within the telecommunications industry.
MTN announced on February 6 that the deal with Mastercard, involving a $200 million investment for a 3.8% stake in MTN’s fintech arm, was officially concluded on February 5. This partnership is part of a broader strategy aimed at enhancing financial inclusion across the continent by bolstering their technological capabilities and infrastructure.
MTN Ambitious Plans for Its Fintech Division
MTN harbors ambitious plans for its fintech division, including considerations for spinning it off to focus more intensely on expanding its financial services and telecom offerings. This move is seen as just the beginning for MTN, which anticipates further collaborations and investments to sustain and accelerate its fintech growth. In August 2023, MTN disclosed its intention to divest up to 30% of its fintech business, signaling a commitment to opening up the division for external investment and collaboration.
MTN’s Fintech Division Is Valued At Approximately $5.2 Billion
With Mastercard’s significant investment, MTN’s fintech division is now valued at approximately $5.2 billion, positioning it as a formidable player in the financial technology sector. This collaboration not only underscores the potential of MTN’s fintech operations but also highlights the role of strategic partnerships in driving financial innovation and inclusion across Africa.
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