Global financial services corporation that specializes in payment processing, Mastercard, has agreed to purchase a minority stake in MTN’s fintech subsidiary, MoMo.
Reports disclose that signing the formal investment agreements will likely occur soon, as both parties near the end of the regular due diligence process. The investment will be closed subject to usual closing conditions.
According to MTN Group President and CEO Ralph Mupita, he said the deal will be structured into two parts, including a commercial agreement on payments and remittance that uses Mastercard’s technology infrastructure to expand in Africa and the investment into a minority stake.