MTN Group is seeking as many as three more strategic investors in addition to Mastercard for its fintech unit, which it values at $5.2-billion. This was made known by the Group CEO of the telco giant Ralph Mupita, “We are open to selling up to a maximum of 30% of the fintech business,” adding that “There might be three or maybe even four strategic partners within that.”
MTN earlier said it signed a memorandum of understanding with Mastercard for a strategic investment and will also use the payment network processor’s technology to offer more services. MTN has 60 million users for its fintech unit, which currently offers basic services like cash-in/cash-out
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Africa’s young, underbanked population is increasingly using mobile phones to bridge gaps in services. That’s opened a lucrative and fast-growing space in the fintech sector for wireless carriers. Much of the investment to date has been in mobile payment systems, with a wave of fast-growing start-ups such as Flutterwave and Interswitch emerging.
MTN is Africa’s largest wireless operator. It has 60 million users for its fintech unit, which currently offers basic services like cash-in/cash-out, according to Mupita.
“With mobile money and fintech services, you are able to leapfrog people from not having any financial services to using the phone to provide a lot of financial services,” Mupita said.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry