Atlas Mara partners Mastercard to deepen penetration in African market
In a bid to accelerate their market penetration in the sub-Saharan Africa market, Mastercard and Atlas Mara, an African banking group founded by Barclays, have signed three strategic business agreements.
This is a landmark affiliation as it could pave the way for up to 20 million consumers and 100,000 merchants across Africa to be digitally and financially included in the formal financial sector by 2020.
This partnership reinforced Atlas Mara investment drive in Africa. The compay which was founded in 2013 has made some notable acquisitions across Africa, including a 30 percent stake in Union bank. However the economic instabilty across a section of African markets has undermined the company’s growth prospect leading to a recent cut in jobs and cost.
Speaking on the alliance, Chief Digital Officer at Atlas Mara. Chidi Okpala, explained that by leveraging the Mastercard worldwide network and other secure digital payment platforms, such as HomeSend, Masterpass QR and Mastercard Payment Gateway Services, the partnership will enable Atlas Mara’s operating banks in Africa to build stronger payment ecosystems and expand access to fast and secure remittance, e-Commerce, and mobile payment solutions.
“These Mastercard assets will position Atlas Mara to lead ongoing industry efforts to create cash-lite payments ecosystems, entrench financial independence, promote intra-Africa trade and remittances thus fast tracking attainment of scale as an Africa focused bank.
“The digital payment solutions developed by the Mastercard Lab for Financial Inclusion in collaboration with Atlas Mara will help create a highly efficient society and facilitate true inclusive growth in Africa while reducing transaction costs across the continent,” Okpala said.
On his part, Mastercard Division President for Sub-Saharan Africa, Daniel Monehin, said “Sub-Saharan Africa requires innovative solutions and strong collaborations across sectors to help drive economic growth. Mobile subscriptions in the region is steadily increasing and it is clear that mobile based solutions are relevant to the needs of people on the continent, and will help to develop an Africa that is less dependent on cash.”
He further explained that Africa’s remittance market “has opened up a number of opportunities for driving financial inclusion due to the lack of legacy issues. According to research by the World Bank, the Sub-Saharan Africa region had an inward remittance flow of over US$34 billion, with outward remittance flows of approximately US$4 billion.”
Atlas Mara Limited (LON: ATMA) is a financial services institution listed on the London Stock Exchange with a vision to create sub-Saharan Africa’s premier financial services institution through organic and inorganic growth by combining the best of global institutional knowledge with extensive local insights.
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