Payment technology multinational MasterCard and telecommunications services multinational MTN on February 16 announced that MTN customers in 16 African countries will be able to make e-commerce payments safely and securely using a MasterCard virtual payment solution linked to MTN's mobile money (MoMo) service.
"Through this partnership, MTN customers with a Mastercard virtual payment solution linked to their MoMo wallets, can make payments to online merchants globally through a seamless and secure digital payment experience on websites and mobile applications. The service is available regardless of whether or not the customer has a bank account," says MTN Group chief digital and financial technology (fintech) officer Serigne Dioum.
Initially designed to allow for cash transfers between mobile users, MTN's MoMo wallet includes loans, insurance, remittances and payments.
“This noteworthy partnership is another step to enable our customers to participate in the global economy. We are resolute that accelerated financial inclusion is a potent enabler of socioeconomic development that empowers the most vulnerable in society," Dioum says.
Mobile devices are the primary channel used to connect to the Internet across sub-Saharan Africa. Mobile financial services have become the dominant form of digital payments, with twice as many mobile money accounts as bank accounts in the region, and consumers increasingly expect to have access to a broader range of digital financial services.
However, consumers and merchants are mostly restricted to a local base of online and offline businesses, curtailing consumers’ ability to engage in global commerce.
“This significant milestone will enable millions of MTN customers to benefit from global digital commerce and drive digital and financial inclusion across Africa through easy and secure access to financial services," says Mastercard Middle East and Africa market development executive VP Amnah Ajmal.