As part of the agreement, MTN’s business will use Mastercard’s technology infrastructure to expand its payments and remittance services in Africa. The announcement comes as Africa’s young, tech-savvy population are increasingly using their mobile phones to bridge gaps in services including banking. That’s opened a lucrative and fast-growing space in the fintech sector for wireless carriers.
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Mastercard to buy stake in MTN’s $5.2b fintech unit
MTN has said previously it plans to raise 25 billion rand from asset sales. Its most recent disposals include the sale and lease-back of its South African mobile-phone towers and a plan to sell some of its West African assets. It also has a stake in New York-listed tower owner IHS Holding Ltd. that it may sell down, although the tower firm’s low trading prices and a dispute with its management has delayed any sale in the near-term.
