Mastercard and pan-African digital payments company Onafriq announced on Monday that they are collaborating to increase accessibility to mobile payment services for consumers and small and medium enterprises (SMEs) across Africa.
Under the agreement, Mastercard and Onafriq plan to deliver secure, cost-effective, and innovative payment options – including mobile money transactions, cross-border remittances, and cross-border settlements – to drive the growth of digital financial services across the continent.
Onafriq said the collaboration will enable it to leverage Mastercard’s technology to support its consumers’ digital commerce needs, interactions, and experiences.
“We are excited about our collaboration with Mastercard, as we share a strong alignment of vision and mission, interoperability, and markets, said Onafriq founder and CEO Dare Okoudjou in a statement. “In addition, we both understand that financial inclusion is not only a moral imperative but also a strategic priority for economic development in Africa.”
The Onafriq is also part of Mastercard’s push into the pan-African fintech market. In early February, Mastercard took a minority stake in MTN Group Fintech, the digital financial services arm of MTN. At the end of the same month, MTN Group Fintech signed a multi-market agreement with Mastercard to use its technology and capabilities.
“Technological advancements are steering the digital financial services industry, and providing accessible digital payment solutions is imperative for empowering consumers to seamlessly transition to digital commerce,” said Amnah Ajmal, EVP of market development for EEMEA at Mastercard. “We seek to leverage fintech partnerships in Africa to catalyze transformative change across industries that benefit individuals, communities, and businesses.”
Africa’s mobile money sector is said to be one of the most established and fastest growing fintech industries in the world. The latest report on the global mobile money industry from GSMA says there are 835 million registered mobile money accounts in Sub-Saharan Africa, accounting for 48% of global users and registering a 19% increase year on year.