It is not yet over for MFS Africa as it continues to conquer the African fintech ecosystem. After cementing its presence in East Africa through the acquisition of Tanzania-based Beyonic in 2020, recently making a $2.3m investment in Uganda fintech Numida, and another $3m in Maviance, a Cameroonian firm that offers digital financial services, the company has formed a new partnership with Global Technology Partners (GTP) to increase financial inclusion in Africa.
Through the partnership, MFS Africa will use GTP’s prepaid platform and a pan-African network of BIN sponsors to offer virtual and actual prepaid / companion cards to more than 100 million mobile wallet users.
“One of the key strategies we have had from the onset is to connect Africans with financial services that speak to their everyday lives. This relationship is adding another layer to this as it affords wallet holders the ability to purchase domestically and internationally from millions of merchants,” said Dare Okoudjou, MFS Founder & CEO
A Look At The Partnership And Why It Is Significant
- The partnership will make it easier to fund prepaid cards throughout the continent via mobile wallets and bank accounts. The cards will be compatible with the Visa and Mastercard networks.
- According to the partners, 57 percent of Africans do not have access to basic banking, and that number conceals a gender gap: just 37 percent of women and 48 percent of males in Sub-Saharan Africa have a bank account. Africa has historically had a low number of bank branches per capita, which is much more prominent in rural regions.
- The growing use of mobile phones in Africa, along with digital banking and Fintech, is a game changer in combating this.
“We see this relationship as another indication of the strategic alliances required to fulfil the promise of bringing financial inclusion to every eligible African,” said Rich Bialek, GTP CEO.
- MFS Africa claimed in March of this year that it has achieved 320 million mobile money wallets on the continent.
- Based on the GSMA’s 2021 State of the Industry report on Mobile Money, MFS Africa claims that it effectively covers 60% of all mobile money wallets in Sub-Saharan Africa.
- According to the GSMA, cross-border remittances processed via mobile money climbed by 65 percent in 2020 to US$12 billion in 2021.
MFS Africa partnership MFS Africa partnership
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer