MTN Group Ltd said MasterCard Inc. agreed to take a minority stake in its financial-technology business, which the company values at $5.2 billion.
The memorandum of understanding with MasterCard values the fintech unit at $5.2 billion, MTN said in a statement on its first half results on Monday.
According to MTN Group president and CEO Ralph Mupita, the deal will be structured as a commercial partnership on payments and remittances employing Mastercard’s technical infrastructure to develop throughout Africa and an investment in a minority share.
Use of mobile phones to bridge gaps in services including banking has opened a lucrative and fast-growing space in the fintech sector for wireless carriers.
MTN Nigeria’s Fintech subsidiary MoMo Payment Service Bank (PSB) Limited recorded negative active subscriber’s growth as well as a slump in deposits in the second quarter of 2023.