MFS Africa acquires GTP for $34M as it looks to issue prepaid cards to its clients

MFS Africa is buying U.S.-based Global Technology Partners for $34 million in cash and shares.

An African tech company buying up a U.S. based one is a very rare deal. MFS Africa made the deal out of necessity for its next growth phase, even though it can be seen as braggart for some.

MFS Africa combines fragmented and disparate payment schemes across Africa into one seamless network so individuals and businesses can transact across borders and currency. More than 300 million mobile money wallets are connected across 35 African countries and 700 corridors.

Millions of Africans can't use their mobile money accounts to pay for subscription-based services because they can't cross borders.

GTP develops payment software. The PitchBook states that the platform integrates several cards with a single bank account and allows users to make payments for online shopping and ATMs. MFS Africa will be able to issue pre-paid cards to its customers as a result of the acquisition.

MFS Africa CEO Dare Okoudjou said that it was mostly for international e- commerce platforms that were not willing to create a mobile-friendly experience. He mentioned that MFS had struck a deal with Spotify to allow them to accept mobile payments from customers in Africa.

Over half a million clients use GTP cards around the world. The total clientele reach could be several million with the merger of MFS Africa. MFS will be able to expand its activities in the U.S.

MFS is known for its acquisitions and expansions. The company, which raised $100 million in equity and debt, has made several moves in its bid to become a true pan-African player, but buying GTS is its first purchase outside the continent. Expansion into the U.S. has been explored by other African financial services.

Within days, the GTP deal is a second win for the mobile moneyecosystem. Visa and M-Pesa launched virtual cards for 30 million users to make digital payments. The virtual card can be activated through the mobile app. M-Pesa users can now make mobile money payments outside of the platform's network.

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MFS Africa collects $100M to expand its digital payments gateway across the region