Mastercard Joins Hands with Access Bank for Cross-Border Payments in Africa

Friday, 24/05/2024 | 10:34 GMT by Tareq Sikder

Cross-border remittances are vital for Africa, with a projected 2.5% growth expected in 2024.

Customers can now send and receive payments through various channels, including bank accounts, mobile wallets, cards, and cash.

Access Bank Group, a multinational banking institution, has recently unveiled a collaborative effort with Mastercard aimed at enhancing access to cross-border payments and remittances within the African continent.

This initiative is described as a strategic move towards integrating Africa into the global economy, emphasizing the partnership's use of Mastercard Move's network and treasury capabilities. Utilizing Access Bank's Access Africa platform, individuals and businesses stand to gain from quicker, traceable, and cost-effective international transactions.

Expanding Cross-Border Payment across Africa

The implementation of this solution extends across Africa, with outlined strategies for broader coverage throughout the continent. Access Bank Group's Access Africa platform, strengthened by Mastercard's network assets and treasury expertise, aims to provide an array of payment alternatives for its clientele.

Mark Elliott, Division President for Africa at Mastercard, Source: LinkedIn

Access Bank customers within the bank's operational jurisdictions across Africa now possess the capability to conduct cross-border payments globally through various channels, including bank accounts, mobile wallets, cards, and cash.

“This collaboration signifies our commitment to transforming payment experiences as it not only brings cutting-edge payment solutions to the bank’s diverse clientele but also extends the reach of Mastercard's financial and digital ecosystem, ensuring millions from underserved communities can actively participate in the evolving financial and digital economy," said Mark Elliott, Division President for Africa at Mastercard.

Growth in Remittance Flows for Sub-Saharan Africa

Cross-border remittances retain their significance in Africa's economic landscape, evidenced by a notable 1.9% surge in flows to Sub-Saharan Africa in 2023, totalling $54 billion. This growth is attributed to substantial remittance increases in Mozambique, Rwanda, and Ethiopia, with Nigeria emerging as a significant contributor.

Projections indicate a further 2.5% uptick in remittance flows for the region in 2024. Moreover, business-to-business cross-border payments serve as indispensable conduits for many enterprises reliant on regional and international trade to propel African economic growth.