Mastercard buys a stake in MTN’s R100 billion mobile money business

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MTN has drawn investment from Mastercard, which has acquired a minority stake in the group's R100 billion mobile money business.

MTN Group Ltd., Africa’s biggest wireless carrier, said Mastercard Inc. agreed to take a minority stake in its financial-technology business, which the company values at $5.2 billion .

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. Airtel has already brought in Mastercard as an investor in its mobile-money unit. India’s Jio Platforms Ltd., the digital arm of billionaire Mukesh Ambani’s Reliance Industries Ltd., set an earlier precedent by attracting capital from Facebook Inc. and Silver Lake Partners in 2020.

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