MTN Group Fintech, the rapidly growing financial technology arm of South African telecommunications giant MTN, has solidified its ambitions in the African digital payments landscape by partnering with Network International, a prominent Middle East and Africa (MEA) region digital commerce enabler headquartered in Dubai. The strategic alliance, announced today, will see Network International act as a key payment processor and issuing partner for MTN Fintech, enhancing the reach and functionality of its mobile financial services across the continent.
This collaboration marks a significant step in MTN’s strategy to expand its fintech footprint and capitalize on the explosive growth of mobile money and digital transactions in Africa. For Network International, the partnership represents a major expansion of its issuer processing portfolio within the African market, leveraging its extensive expertise and infrastructure across the region.
The initial phase of the partnership will focus on rolling out card issuance products across several key MTN Fintech markets, with Rwanda already operational. Uganda, Ivory Coast, and Nigeria — all strategically important markets for MTN — are slated to follow imminently. Network International will provide a comprehensive suite of services, including end-to-end transaction processing, robust card management systems, and advanced online fraud prevention measures. This infrastructure is designed to ensure MTN Fintech users experience seamless access to both traditional mobile services and increasingly sophisticated digital payment solutions.
Dr. Reda Helal, Group Managing Director — Processing, Africa and Co-Head Group Processing at Network International, emphasized the strategic importance of the collaboration. “Our collaboration with MTN Group Fintech marks a major milestone for our outsourced payments services in Africa. It demonstrates our proven ability to successfully serve Mobile Network Operators (MNOs) through our fully-fledged processing solutions and underscores our sustained dedication to the African region,” he stated. “We are excited to support MTN Group Fintech’s ambitious growth strategy and its business development plans across the continent.”
Cedric N’guessan, Executive for Payment and E-commerce at MTN Group Fintech, highlighted the broader implications for financial inclusion. “This collaboration with Network International is pivotal in enhancing financial inclusion across Africa and beyond,” Mr. N’guessan commented. “It directly empowers our customers to actively participate in the global digital economy, aligning perfectly with our strategic objectives, alongside our existing partnership with Mastercard, to democratize access to digital financial services across the continent.”
The move comes at a time of robust growth for MTN Group, particularly within its fintech division. March last year, the telecommunications giant revealed a 13.5% surge in overall revenue to R210 billion ($11 billion) for the past financial year. While traditional voice and data services remain significant contributors, MTN’s fintech arm, MTN MoMo, is increasingly becoming a key engine for growth. Fintech revenue totalled R21 billion ($1.11 billion) in the reported period, indicating its expanding influence within the group’s overall financial performance.
Despite facing macroeconomic headwinds including high inflation and foreign exchange volatility across its operating markets, MTN reported an expanding subscriber base. Active users climbed to 295 million, with active data subscribers increasing by over 9% to 150 million, and active mobile money users growing by 5% to 72.5 million. Transaction volumes within the fintech platform surged by approximately one-third to 17.6 billion, while the value of transactions processed soared to $272 billion, highlighting the increasing reliance on mobile money for daily transactions across the continent.
The strategic importance of MTN’s fintech operations has been further validated by Mastercard’s recent investment. Earlier last year, the global payments giant announced a $200 million (R3.8 billion) investment for a 3.8% minority stake in MTN MoMo. This deal, finalized in early February 2024, valued MTN Group Fintech at an impressive $5.2 billion (R99 billion) on a cash and debt-free basis. This valuation highlights the significant potential investors see in mobile financial services within the African context and MTN’s leading position within this rapidly evolving sector.
For Network International, the partnership with MTN Fintech further solidifies its position as a leading payment processor in Africa. Operating centres in Egypt, South Africa, and Nigeria, in addition to its Dubai headquarters, the company boasts a significant footprint across the continent. Serving over 250 financial institutions across 50 countries in the broader MEA region, Network International brings substantial scale and expertise to this collaboration.
Network International’s growing prominence as a preferred payment processor in the African telecommunications sector is further highlighted by its existing partnership with Airtel Africa, a leading provider of telecommunications and mobile money services across 14 African countries. Announced last year, this collaboration also sees Network International acting as Airtel Africa’s payment processor, demonstrating the company’s capability to serve multiple major players within the competitive African mobile money market and solidifying its position as a key enabler of digital commerce across the continent. These partnerships with both MTN and Airtel Africa highlight a clear trend: major telecommunications operators are increasingly turning to specialized payment processors like Network International to enhance their fintech offerings and expand their reach in the rapidly evolving digital financial services space.
The alliance between MTN Fintech and Network International is poised to accelerate the expansion of digital financial services across Africa. By combining MTN’s extensive mobile network and customer base with Network International’s robust payment processing infrastructure, the partnership aims to empower millions more Africans with access to the formal financial system, further driving financial inclusion and economic growth across the continent.