MTN, MasterCard to launch MoMo virtual card for Ghanaians

MTN, MasterCard, and MTN Group Fintech have entered into a groundbreaking partnership to equip all MTN MoMo customers with payment cards, according to a joint statement released on February 20, 2024.

This strategic collaboration will introduce virtual and physical Mastercard companion cards for every MoMo wallet, granting users access to a vast network of over 100 million acceptance locations worldwide.

The alliance between Mastercard and MTN leverages Mastercard’s cutting-edge technology and expertise to support MTN’s vision of becoming Africa’s leading fintech platform for both consumers and merchants. This initiative follows closely on the heels of Mastercard’s recent minority investment in MTN Group Fintech, the digital financial services arm of Africa’s largest mobile network operator, which was finalized earlier this month.

The newly introduced cards will be available to all 60 million active monthly MoMo wallets across 13 countries where the mobile money service operates, including South Africa, Benin, Cameroon, Cote d’Ivoire, Eswatini, Ghana, Liberia, Nigeria, the Republic of Congo, the Republic of Guinea, Rwanda, Uganda, and Zambia.

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By combining the extensive reach of MTN’s mobile money platform with Mastercard’s robust payment solutions, this collaboration aims to bridge the gap between millions of individuals and small businesses in Africa, providing them with secure mobile payment options and the benefits of a cashless digital economy.

Currently, only 43% of Africa’s population has access to traditional banking services, and over 90% of transactions are conducted in cash. This partnership seeks to strengthen local digital payment infrastructure, promote financial inclusion, and stimulate economic growth, particularly for small and medium-sized enterprises (SMEs). Mobile money solutions, combined with Mastercard’s offerings, present SMEs with opportunities for expansion, such as setting up e-commerce platforms, enabling QR payments, tap-on-the-phone solutions, and accepting digital cards.

Both Mastercard and MTN emphasize the pivotal role of this collaboration in delivering enhanced user experiences, secure transactions, and expanded payment acceptance capabilities. Furthermore, Mastercard’s cybersecurity solutions will be integrated into MTN’s operations, enhancing customer confidence and loyalty.

Also, the partnership will facilitate the growth of international remittance services, addressing the increasing demand for cross-border transactions across Africa. With daily remittance transactions surpassing US$2 billion, the collaboration aims to tap into this burgeoning market, which witnessed a 65% year-over-year surge in mobile money wallet remittances in 2020, totaling approximately US$1 billion.

SOURCE: Coverghana.com.gh