MTN’s Mobile Money service just got a whole lot more powerful. Initially introduced as a method to transfer funds from one user to another, the service has evolved to include loans, investment opportunities, and now thanks to Mastercard, international transactions.
Today, MTN and Mastercard announced its new partnership, which will introduce the ability to make international payments without the need for a bank account. This new payment solution will be available to MoMo’s millions of current users across 16 African countries (including South Africa).
How MoMo/Mastercard works
MTN MoMo functions like an e-wallet that isn’t linked to a specific bank account — rather, it’s linked to a user’s phone number within the app. Linking the Mastercard virtual payment solution to the MoMo app brings about a bunch of new opportunities, like paying for international services or subscriptions, or ordering that product from Amazon that Takealot doesn’t have in stock.
“Consumers and merchants can engage with brands and businesses abroad through digital commerce, extending their reach to an international marketplace and unlocking a host of opportunities,” the companies said in a joint statement, according to TechCentral.
Once their apps are linked with Mastercard, MoMo users will have the ability to make payments to global merchants through a secure payment portal through the e-commerce site. This opens up many opportunities for local small businesses to order stock from overseas or book travel on international websites.