Mastercard to acquire minority stake in MTN’s fintech business

MasterCard will acquire a minority stake in MTN Group's fintech division, based on a cash and debt-free enterprise valuation of approximately $5.2 billion .

According to MTN Group CEO Ralph Mupita, the conclusion of the investment will be subject to customary due diligence conditions.MTN says it reached an agreement with Mastercard during the period for a minority investment to support the acceleration of its payments and remittances verticals. “We are pleased with the sequential recovery and trajectory of our fintech revenue, which grew by 25.4% in Q2 versus 17.4% in Q1. We obtained a PSB [payment service bank] licence for our Cameroon operations in the second quarter, allowing us to expand our advanced product offerings.”

However, he states: “The growth of our overall fintech ecosystem remained robust, with a 37.3% increase in transaction volumes to 8.3 billion transactions and a 61.6% increase in transaction value to $135.2 billion.

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

MTN selling stake of R99-billion fintech business to MastercardAfrica’s biggest wireless carrier says Mastercard agreed to take a minority stake in its financial-technology business.
Source: mybroadband - 🏆 11. / 67 Read more »

Mastercard buys a stake in MTN’s R100 billion mobile money businessMTN has drawn investment from Mastercard, which has acquired a minority stake in the group's R100 billion mobile money business.
Source: BusinessTechSA - 🏆 24. / 61 Read more »

MTN fintech business valued at R99-billion as Mastercard eyes stake - TechCentralMTN Group has signed an initial agreement with global payments giant Mastercard to sell a minority stake in its fintech arm.
Source: TechCentral - 🏆 8. / 71 Read more »