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Mastercard (MA) Teams Up to Aid Mpamba's Mobile Money Clients
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Mastercard Incorporated (MA - Free Report) recently collaborated with Malawi’s mobile money service provider, TNM Mpamba. Through this alliance, TNM Mpamba has introduced a Mastercard virtual payment solution powered by National Bank of Malawi.
Shares of Mastercard declined 1% on Aug 11, replicating declines in broader markets.
This Mastercard solution can be availed at low cost and the onboarding process while applying for the same will also be a hassle-free one. The virtual solution will be connected to the mobile money wallet of TNM Mpamba. As a result, customers utilizing the mobile money wallet can make seamless, and secured domestic and international digital transactions across the vast Mastercard network. This, in turn, will expand customers access to a global online marketplace comprising innumerable brands and merchants.
The solution intends to accelerate and ease the process of undertaking e-commerce transactions through mobile wallets. This bodes well particularly for a diversified array of transactions that require card payments across several categories including entertainment, online shopping or utility bill payments. Besides the payment solution is integrated with multiple security tiers aimed at protecting the confidential financial information of customers.
The latest tie-up marks another digital partnership by Mastercard, which seems in line with its digital transformation efforts being pursued worldwide. Besides enhancing Malawi’s access to digital financial services and mobile money platforms, the recent move is expected to bolster Mastercard’s capabilities and presence in Africa as well. The partnership seems to be a time opportune one considering growing contribution of mobile money industry toward the global digital boom.
Africa seems to be an attractive market for Mastercard, given the digital prospects across Africa. Per the GSMA's latest State of the Industry Report on Mobile Money, the continent has more than half a billion mobile money accounts and the count remains at nearly 50% of the global total.
Per a report published in Statista, the continent’s mobile money industry has been witnessing substantial growth led by increased technology access, impediments to availing age-old financial services and inclination toward adopting contactless payments triggered by the COVID-19 pandemic. Another report of Statista stated that mobile money users undertook transactions worth $767 billion during 2020, with African countries contributing the most to the total transaction value. Bright growth prospects of Africa’s mobile money industry present the perfect ground for Mastercard to capitalize on through collaborations or significant investments.
Other companies such as The Western Union Company (WU - Free Report) and MoneyGram International, Inc. have undertaken efforts to tap mobile money wallet opportunities in Africa. While MoneyGram tied up with four mobile wallet and fintech payment providers last year, Western Union joined forces with Airtel Africa for helping Airtel Money Mobile Wallet users in receiving funds directly into their wallets.
Similar to Mastercard, another company Visa Inc. (V - Free Report) has been attempting to bolster its African footprint. Visa tied up with the fintech company Carbon for offering basic financial services access to Africans through issuing digital and physical Visa cards.
Image: Bigstock
Mastercard (MA) Teams Up to Aid Mpamba's Mobile Money Clients
Mastercard Incorporated (MA - Free Report) recently collaborated with Malawi’s mobile money service provider, TNM Mpamba. Through this alliance, TNM Mpamba has introduced a Mastercard virtual payment solution powered by National Bank of Malawi.
Shares of Mastercard declined 1% on Aug 11, replicating declines in broader markets.
This Mastercard solution can be availed at low cost and the onboarding process while applying for the same will also be a hassle-free one. The virtual solution will be connected to the mobile money wallet of TNM Mpamba. As a result, customers utilizing the mobile money wallet can make seamless, and secured domestic and international digital transactions across the vast Mastercard network. This, in turn, will expand customers access to a global online marketplace comprising innumerable brands and merchants.
The solution intends to accelerate and ease the process of undertaking e-commerce transactions through mobile wallets. This bodes well particularly for a diversified array of transactions that require card payments across several categories including entertainment, online shopping or utility bill payments. Besides the payment solution is integrated with multiple security tiers aimed at protecting the confidential financial information of customers.
The latest tie-up marks another digital partnership by Mastercard, which seems in line with its digital transformation efforts being pursued worldwide. Besides enhancing Malawi’s access to digital financial services and mobile money platforms, the recent move is expected to bolster Mastercard’s capabilities and presence in Africa as well. The partnership seems to be a time opportune one considering growing contribution of mobile money industry toward the global digital boom.
Africa seems to be an attractive market for Mastercard, given the digital prospects across Africa. Per the GSMA's latest State of the Industry Report on Mobile Money, the continent has more than half a billion mobile money accounts and the count remains at nearly 50% of the global total.
Per a report published in Statista, the continent’s mobile money industry has been witnessing substantial growth led by increased technology access, impediments to availing age-old financial services and inclination toward adopting contactless payments triggered by the COVID-19 pandemic. Another report of Statista stated that mobile money users undertook transactions worth $767 billion during 2020, with African countries contributing the most to the total transaction value. Bright growth prospects of Africa’s mobile money industry present the perfect ground for Mastercard to capitalize on through collaborations or significant investments.
Other companies such as The Western Union Company (WU - Free Report) and MoneyGram International, Inc. have undertaken efforts to tap mobile money wallet opportunities in Africa. While MoneyGram tied up with four mobile wallet and fintech payment providers last year, Western Union joined forces with Airtel Africa for helping Airtel Money Mobile Wallet users in receiving funds directly into their wallets.
Similar to Mastercard, another company Visa Inc. (V - Free Report) has been attempting to bolster its African footprint. Visa tied up with the fintech company Carbon for offering basic financial services access to Africans through issuing digital and physical Visa cards.
Zacks Rank & Price Performance
Shares of Mastercard, which carries a Zacks Rank #3 (Hold), have gained 11.7% in a year against the industry’s decline of 1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research