MFS Africa, a digital payments processor, has netted $4.5m in its Series B funding round led by China-based LUN Partners Group.
Goodwell Investments also participated in the round, alongside a group of unnamed angel investors. This deal marks the first African FinTech company to pick up an investment from a China-based investment group and is part of the country Belt and Road initiative, according to the company.
As part of the transaction, MFS will work with LUN Partners to boost financial inclusion in countries targeted by China Belt and Road strategy. This initiative aims to distribute the country services, investment and infrastructure globally.
The pair will work together to support Chinese and Asian enterprises, focusing on FinTechs and e-commerce companies, to drive financial inclusion and simplifying trade with Africa. To accomplish this they will use a single access point to scale and monetise digital services across the continent through mobile money networks.
MFS Africa is a digital payments network that helps to connect more than 170 million mobile wallets and over 100 partners, including Airtel, Ecobank, MTN, Orange and Vodafone, across Africa.
With the new burst of capital, MFS will look increase its merchant services offerings including a service that would allow major retailers and internet-based businesses to accept payments through mobile wallets. The single access point enables global organisations to reach and transact with African consumers and businesses across borders, and currencies.
The company is building a digital payments hub to help drive financial inclusion across the region.
LUN Partners Group founder and chairman Peilung Li said, ?China is home to some of the most exciting and fastest growing technology firms in the world, and Africa is the birthplace of mobile money. At the same time, the continent remains fragmented with no single network able to serve the region. Organisations that want to transact with African consumers and businesses need to secure agreements with each and every provider, stunting competition and growth.
?MFS Africa has spent years connecting these mobile money services to create one Pan-African network which can substantially boost cross border trade and open up new opportunities for Chinese as well as global firms.p>
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