Mastercard Incorporated (NYSE:MA) has joined forces with Access Bank Group, a Nigeria-based multinational bank, to introduce an innovative cross-border money movement solution facilitating seamless payments to and from over 150 African markets. The solution, launched immediately upon the collaboration announcement, aims for further expansion across the continent. On May 10, Mastercard shares rose by 0.3% in response to this development.
The solution leverages Mastercard’s diverse network assets and the treasury capabilities of Mastercard Move, complemented by Access Bank’s deep understanding of African markets. This collaborative effort is anticipated to broaden payment options and reduce transaction costs for consumers and businesses engaged in international payments.
Clients of Access Bank in regions where the solution is available can already benefit from immediate cross-border payments through the Access Africa platform. This platform facilitates transactions via various channels, including bank accounts, mobile wallets, cards, and cash.
Fable Fintech, an Express Partner of the Mastercard Move Partner Program, collaborated closely with Mastercard and Access Africa experts as the technical implementation partner for the solution’s launch.
This partnership underscores Mastercard’s commitment to enhancing payment experiences, expanding its customer base, and promoting digitization across Africa. Mastercard’s brand presence and extensive delivery network enhance security in remittances, offering peace of mind to customers.
As Mastercard Move platform usage increases, the company is poised to benefit from revenue growth driven by value-added services and solutions.
The timing of this collaboration is strategic, given the robust remittance flows in certain African markets like Mozambique, Rwanda, Ethiopia, and Nigeria. The continent’s growing digital economy, fueled by mobile phone usage, rising Internet penetration rates, and favorable government policies, presents ample opportunities. Mastercard remains proactive in deepening its presence in African markets through partnerships with regional financial institutions and significant investments.
In April 2024, Mastercard partnered with Kenya’s Equity Bank to facilitate secure cross-border money transfers across 30 countries using the Mastercard Cross-Border Services platform.
Over the past year, Mastercard shares have gained 19.2%, outperforming the industry’s 17.2% growth.
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