MFS Africa acquires US-based prepaid card processor GTP

African digital payments platform, MFS Africa, has made a strategic move by acquiring US-based prepaid card processor Global Technology Partners (GTP). Filip Nilsson, the Director of Corporate Development at MFS Africa, sat down for an exclusive interview with CNBC Africa to discuss the acquisition and the company's vision for the future of payments on the continent. Nilsson shed light on the rationale behind the acquisition, citing MFS Africa's mission to make borders matter less in payments to and from Africa. By bridging the gap between the traditional card ecosystem and the emerging mobile money system in Africa, the acquisition of GTP presents a unique opportunity for MFS Africa to offer synergistic payment solutions to the 80 banks across 34 markets that are currently clients of GTP. Nilsson emphasized that MFS Africa's expertise in interoperability and cross-border transactions complements GTP's strengths in client portfolio, technical expertise, and operational capabilities. The collaboration aims to provide a seamless and efficient payment experience for users across Africa. In a rapidly evolving payment landscape, MFS Africa is positioning itself as a leader in the African payments space. By connecting traditional financial networks with new digital channels, the company is pioneering a network of networks that will simplify cross-border transactions and enable access to financial services for millions of users. One of the key initiatives post-acquisition is to offer card programs for telcos and fintechs, catering to the 400 million mobile money users in Africa who lack access to traditional banking services. The acquisition of GTP will expedite the launch of new card programs, streamline regulatory processes, and serve as a one-stop solution for institutions looking to offer prepaid or debit cards. While Africa remains the primary focus for MFS Africa, the company is open to partnerships with global entities to facilitate payments to and from the continent. With an eye on market consolidation and the changing regulatory landscape driven by initiatives like the African Continental Free Trade Agreement, MFS Africa is poised to lead the way in creating an interconnected and interoperable payment ecosystem. In markets like Nigeria, where cash-based transactions are prevalent, MFS Africa's acquisition of BACC, an agent network with over 100,000 agents, is aimed at introducing interoperable cross-border payment solutions. By offering seamless payment options into and out of Nigeria, MFS Africa is looking to extend its reach beyond the African continent. The acquisition of GTP has attracted significant interest from potential collaborators, signaling a promising future for MFS Africa. By addressing cross-border payment hurdles and promoting financial inclusion, MFS Africa is cementing its position as a key player in transforming the payments landscape in Africa. As Nilsson highlighted, the core mission of MFS Africa is to simplify payment processes and provide equal access to financial services for individuals and businesses across the continent. With the acquisition of GTP, MFS Africa is set to revolutionize the payments industry and drive financial inclusion in Africa.