Mastercard has entered into a strategic partnership with Smile ID, making the identity verification provider its exclusive partner in Africa. The deal, which includes a minority investment from the payments giant, aims to bolster secure digital identity solutions across the continent, tackling fraud and expanding financial inclusion.
The partnership will see Smile ID’s technology integrated into Mastercard’s digital platforms, offering a suite of tools to banks, fintechs, and mobile money operators. This will enable them to onboard new customers more efficiently while complying with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations.
Africa’s digital economy is projected to reach $1.5 trillion by 2030, but this growth is hampered by identity fraud, which costs banks and lenders hundreds of millions of dollars annually. By combining Mastercard’s global network with Smile ID’s local expertise, the two companies aim to create a more secure and trusted digital ecosystem.
“This partnership with Smile ID is a pivotal step in advancing digital trust and inclusion across Africa,” said Selin Bahadirli, Executive Vice President, Services, Mastercard EEMEA. “As fragmented identity systems slow down businesses and lock millions out of the digital economy, Smile ID’s innovative identity platform complements Mastercard’s commitment to fostering secure and inclusive digital ecosystems.”
Smile ID has developed a strong reputation in the African market, recently reaching 300 million identity verifications. The company’s technology is capable of delivering biometric verification in just two seconds with a 99.8% accuracy rate across all skin tones, a crucial feature in a diverse continent like Africa.
“By joining forces with Mastercard, we can help turn the tide,” said Mark Straub, CEO of Smile ID. “As we combine insights and technologies, we can expand opportunities for consumers by giving banks and mobile wallets the confidence to onboard the next 300 million African users securely, in seconds.”
The collaboration is set to have a significant impact on the African fintech landscape, where a secure and reliable digital identity is a key enabler for growth. It will help to formalize the informal sector, reduce fraud, and provide more people with safe access to financial services.