Digital payments network MFS Africa has entered an agreement to acquire Global Technology Partners (GTP).
Based in Tulsa, Oklahoma, GTP is considered a leader in prepaid cards in Africa. Its platform is used by more than 80 banks, including UBA, Ecobank, BIA, Stanbic, Coris, NSIA and Zenith Bank, across 34 countries.
GTP is also connected to the Visa, Mastercard, GIM, GIMAC and Verve networks, which it processes prepaid cards.
MFS Africa said the acquisition will allow it to strengthen its offering to the African gig economy, the business travel market and millions of people who want to take advantage of global e-commerce by using a card linked to a mobile money wallet – rather than a bank account – for smooth and secure online purchases. It also expands MFS Africa’s bank and FinTech clientele and bridges mobile money users with the most renowned card payment networks such as Visa and Mastercard.
The acquisition is also one of the few of a US technology company by an African company.
Following the acquisition of GTP, MFS Africa said it plans to invest more in the current GTP card programs offered to banks and to bring all the innovations and opportunities offered by the MFS Africa network – including interoperability with mobile money.
The company will also use the GTP platform to implement card programmes for mobile network operators and FinTechs in Africa more quickly. Finally, MFS Africa intends to take advantage of GTP’s presence in the United States to develop its commercial activities in North America.
Dare Okoudjo, founder and CEO of MFS Africa, said, “This is an important step for us and for the African technological ecosystem, on several levels. The acquisition of an American company of the size and nature of GTP by an African technology company is in a way a first, and we are delighted to welcome the GTP team to the MFS Africa family.”
PayTech is booming in Africa. It was the most dominant sector in the region in May, accounting for 26% of total deals in the first quarter of 2022 at a total of 23 transactions. Talk360 recently scored $4m to launch a new pan-African payment platform.
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