Mastercard has paid R3.8 billion to buy a minority stake in MTN’s FinTech business valued at $5.2 billion or R100 billion.
Initially revealed on August 14, 2023, the transaction remains pending closure, awaiting customary conditions.
This collaboration adds depth to the broader commercial ties between MTN and Mastercard.
The aim is to foster technological advancements and infrastructural growth, ultimately driving financial inclusivity throughout Africa.
Particularly, this strategic alliance seeks to bolster MTN’s fintech arm, enhancing its payment and remittance services.
Looking ahead, MTN remains open to exploring further avenues for value-driven partnerships and investments. Market conditions will influence the trajectory of such endeavors, as the company seeks to align with strategic partners and long-term investors committed to mutual growth.
Mastercard has acquired a minority stake in MTN’s FinTech business valued at $5.2 billion or R100 billion.
Africa’s biggest mobile phone operator informed investors on Monday that Mastercard signed a memorandum of understanding which provides for a minority investment by Mastercard into its FinTech.
“Following the bespoke process to identify and potentially introduce strategic minority investors into MTN Group FinTech, we executed commercial agreements with Mastercard to support the acceleration and growth of our FinTech business’s payments and remittance services,” said MTN.
Mastercard will pay for the minority stake through cash and debt-free basis.