Payments platform Mastercard has signed a memorandum of understanding to take a small portion of the MTN’s Group business arm currently valued at around $5.2bn. Mastercard will aid in the expansion of the payments and remittance services offered by MTN.
Th development comes after MTN had previously shared plans to raise around $1.3 billion by selling some of its assets that include Mobile phone towers and their share in IHS Holdings LTD.
The deal will be divided into two parts to parts including a commercial agreement on payments and remittances that use MasterCard’s technology infrastructure. Mastercard has previously connected its virtual payment service to MTN wallets that has enabled MTN customers to make international payments online without the need of a bank account.