MTN and Mastercard have partnered to accelerate mobile money services across 13 African markets. This collaboration aims to introduce a prepaid virtual card for MTN's MoMo customers, providing them access to over 100 million global acceptance points. Additionally, the partnership will empower MoMo merchants to seamlessly accept card payments, enhancing cross-border money remittances. The agreement, leveraging Mastercard's technology, supports MTN's ambition to become Africa's leading fintech platform. With MTN's vast subscriber base and active monthly MoMo wallets, the collaboration targets markets like Benin, Ghana, Nigeria, and South Africa.
The partnership is driven by a shared VISION to bring digital commerce, financial inclusion, and prosperity to millions in Africa. Mastercard's innovative solutions, combined with MTN's extensive reach, aim to foster growth for individuals and small businesses. The collaboration strengthens local digital payment infrastructure and facilitates global access for MoMo wallet users, providing a virtual and physical Mastercard companion card. This opens doors for SMEs with low-cost payment solutions, promoting online business operations and digital payment acceptance.
As Africa faces challenges in financial inclusion, where only 43% are banked and over 90% of payments are in cash, this partnership strives to address these gaps. International remittances via mobile-money wallets witnessed significant growth in 2020, reaching around US$1 billion. Beyond this collaboration, Mastercard remains committed to its goal of bringing 1 billion people and 50 million SMEs into the global digital economy by 2025.
In this groundbreaking partnership, MTN and Mastercard are poised to revolutionize mobile money services across the African continent. Their collaboration focuses on introducing a prepaid virtual card tailored for MTN's MoMo customers. This innovative offering grants users access to an extensive network of over 100 million global acceptance points, marking a significant leap in accessibility and convenience.
Additionally, the partnership empowers MoMo merchants, enabling them to seamlessly accept card payments. This enhancement not only augments the platform's cross-border money remittance services but also aligns with MTN's ambitious goal of becoming Africa's premier fintech platform. The collaboration targets a broad spectrum of markets, including Benin, Ghana, Nigeria, and South Africa, leveraging MTN's substantial subscriber base and active monthly MoMo wallets
At the core of this collaboration is a shared vision to catalyze digital commerce and financial inclusion across the continent. Mastercard's cutting-edge solutions, combined with MTN's expansive reach, create a powerful synergy aimed at fostering growth for both individuals and small businesses. The strategic partnership also contributes to strengthening local digital payment infrastructure, a crucial step in addressing Africa's challenges in financial inclusion.
An integral aspect of this collaboration is the provision of global access for MoMo wallet users. Every MoMo wallet will now include a virtual and physical Mastercard companion card, offering users the flexibility to transact at over 100 million acceptance locations worldwide. This not only elevates the international footprint of MTN but also positions Mastercard as a key player in enhancing global financial accessibility.
The partnership extends its benefits to SMEs, introducing low-cost payment solutions like Mastercard's SME-in-a-Box. This empowers small business owners to transition their operations online seamlessly, with features like QR enablement, Tap on Phone solutions, and digital card acceptance. The overarching goal is to enhance customer experience, reduce business costs, and unlock new avenues for growth and innovation in the SME sector.
Africa, with only 43% of its population banked and over 90% of payments in cash, faces significant challenges in achieving financial inclusion. The Mastercard and MTN collaboration is strategically poised to address these challenges by actively supporting various mobile money programs across the continent. This collaborative effort has already brought MORE individuals into the financial mainstream by facilitating payments through global platforms.
International remittances via mobile money wallets, a critical aspect of financial transactions in Africa, experienced remarkable growth in 2020, reaching around US$1 billion. This underscores the increasing demand for secure and efficient cross-border remittance services, a domain where the Mastercard and MTN partnership aims to excel.
Beyond the immediate benefits of this collaboration, Mastercard's commitment extends to a broader goal – bringing 1 billion people and 50 million SMEs into the global digital economy by 2025. This dedication involves collaborations with various telecommunications network companies globally, reinforcing Mastercard's commitment to making financial inclusion a reality on a global scale.