Mastercard-MTN deal opens up wider choice for MoMo usersThe partnership now means millions of MTN MoMo customers in 16 African countries can shop and pay online with global merchants.
Mastercard and MTN Group have gone into a deal that will enable subscribers to buy items of their choice from a longer list of countries around the world using their MoMo wallet.
Serigne Dioum, the MTN Group Chief Digital and Fintech Officer said early this week, “We are very excited about this partnership with Mastercard, which is another step in realizing our ambition to build Africa’s largest fintech platform, accelerating economic and social development through digital innovations for the benefit of citizens across the continent and beyond.”
According to a statement, through the Mastercard virtual payment solution linked to MTN MoMo (Mobile Money) wallets, consumers can now unlock a host of opportunities and shop from their favorite international brands online while in their home countries or travelling abroad.
Launched in 1994, the MTN Group is a leading emerging market telecom operator while Mastercard is a global technology company in the payments industry. The partnership now means millions of MTN MoMo customers in 16 African countries can shop and pay online with global merchants.
Amnah Ajmal, the Executive Vice President for Market Development, Mastercard Middle East and Africa, said: “This significant milestone will enable millions of MTN MoMo customers to benefit from global digital commerce, advancing consumer choice and driving digital and financial inclusion. This partnership shows that we can deliver innovative digital solutions that have a far-reaching impact and realize the true potential of inclusive growth across the continent, ultimately unlocking opportunities to improved economic possibilities for individuals and businesses.”
The announcement comes at a time when e-commerce and online shopping are reaching record levels across Africa. According to the Economy 2021 outlook conducted by the Mastercard Economics Institute, 20pc to 30 pc of the Covid-19-related surge in e-commerce will remain a permanent feature of overall retail spending.
Across sub-Saharan Africa, mobile devices are the primary channel used to connect to the internet. According to GSMA, the industry umbrella, by 2025, there will be 300 million more people using their devices to access internet services.
In light of this significant growth, mobile financial services have become the dominant form of digital payments, with twice as many mobile money accounts as bank accounts in the region. As a result, consumers increasingly expect to have access to a broader range of online offers and digital financial services.
Through this strategic partnership, MTN customers with a Mastercard virtual payment solution linked to their MoMo wallets can shop on global platforms regardless of whether or not they have a bank account.
The MTN MoMo virtual payments solution will enable consumers to explore and shop at well-known global e-commerce brands and pay quickly and securely for leisure shopping, travel, accommodation, entertainment, streaming services and more. It also allows small business owners to purchase from suppliers abroad and gain access to a range of additional financial services and solutions.