Mastercard has acquired mobile payments technology firm Oltio from South Africa’s Standard Bank Group for an undisclosed sum.
The acquisition will allow Mastercard to expand its digital payment services in Middle East and Africa.
Oltio is a specialised technology company that offers advanced security and authenticated payment solutions on mobile devices.
The firm has developed and patented various mobile payments and banking solutions, including an authentication technology.
The technology allows consumers to authenticate Masterpass digital wallet purchases in South Africa through using their bank PIN and mobile phone.
Mastercard will also use Oltio’s technology, people and infrastructure to advance its existing suite of digital solutions to provide better services for merchants and issuers in cash-orientated and emerging markets.
Through integrating into the existing mobile banking applications, the issuers can use the platform for person-to-person payments, bill payments, and airtime top-ups.
Mastercard will advance the capability of omni-channel acceptance solutions for merchants, helping them to accept digital payments using technology such as quick response (QR) codes.
Mastercard Southern Africa division president Mark Elliott said: “Too many consumers and merchants in the MEA region are stuck in a cash economy that doesn’t work for them.
“By combining our joint expertise, technologies and reach, we can bridge the divide between the region’s cash economies and the digital future, bringing the benefits of digital payments to more people and businesses.”
Standard Bank group card and emerging payments executive Andrew Wilmot said: “We have had a great relationship with Mastercard over the years, and believe that Oltio will thrive as part of an issuer-independent payments company with Mastercard’s vast global resources and innovative technology.”
Mastercard’s global payments processing network allows to connect consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories.
Image: Mobile Payment MWC18. Photo: courtesy of MasterCard.