Mastercard Buys a Key Technology from Africa
Mastercard has completed its acquisition of mobile payments technology company Oltio from Standard Bank Group. Yes, a bank is selling one of its best solutions. Absolutely, that is the only way to get that technology to blossom. I have maintained that removing banks from some bank-incubated fintech products would make the products flourish. It helps other banks to adopt the solution, removing any element of conflict.
The acquisition builds on Mastercard's longstanding relationship with Oltio, a startup that pioneered and patented several mobile payments and banking solutions, including an authentication technology. Today, that technology enables consumers to authenticate Masterpass digital wallet purchases in South Africa using their bank PIN and mobile phone.
Over the coming months, Mastercard will leverage Oltio's technology, people and infrastructure to enhance and scale its existing suite of digital solutions for merchants and issuers in cash-orientated, emerging markets - in turn, enabling them to deliver more seamless payment experiences to the consumer.
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Oltio would blossom under Mastercard as it was caged within Standard Bank.