By Omodele Adigun
Mastercard has announced the expansion of its strategic commercial partnership with Smile ID, a leading identity verification provider in Africa.
The partnership aims to accelerate the rollout of secure digital identity solutions across the continent, enabling banks, fintechs, mobile money operators, and other enterprises to onboard new customers faster and more securely.
The partnership combines Mastercard’s global payments network and Identity technology with Smile ID’s data verification and fraud detection capabilities. This integration will enable customers to verify digital identity elements, reducing identity fraud and expanding access to the financial system. With this collaboration, Mastercard and Smile ID are well-positioned to address the challenges of financial inclusion and fraud prevention in Africa.
Africa’s digital economy is projected to reach $1.5 trillion by 2030, and trusted identity solutions are a critical enabler of financial inclusion, fraud prevention, and cross-border commerce.
The partnership between Mastercard and Smile ID will play a significant role in unlocking opportunities for millions of Africans by providing secure identity verification services that work across digital channels.
For over five decades, Mastercard has worked alongside African governments, businesses, and communities to advance financial inclusion and economic development.
The company’s commitment to digital inclusion and innovation in Africa has been reinforced through its minority investment in Smile ID. This investment demonstrates Mastercard’s long-term commitment to supporting the growth of the digital economy in Africa.
The partnership will enable Mastercard customers, including banks, telecom providers, mobile money operators, and fintechs, to gain access to Smile ID’s advanced identity verification tools.
These tools will be integrated into Mastercard’s digital platforms, assisting in the enablement of instant, secure onboarding of users across all African markets.
The partnership will also enhance fraud detection and prevention, including synthetic identity fraud, and ensure compliance with local and international Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations.
Smile ID’s integrations with local governments and trusted data sources offer unique capabilities that differentiate this partnership in the region.
The company’s pan-African reach, near real-time onboarding, and integration with Mastercard’s insights will enable scalable solutions for cross-border commerce and digital expansion.
The surge in synthetic identity fraud in Africa is costing banks and lenders hundreds of millions of dollars a year. By joining forces, Mastercard and Smile ID can help turn the tide. The partnership will enable banks and mobile wallets to onboard the next 300 million African users securely, in seconds.
According to Selin Bahadirli, Executive Vice President, Services, Mastercard EEMEA, “This partnership with Smile ID is a pivotal step in advancing digital trust and inclusion across Africa. As fragmented identity systems slow down businesses and lock millions out of the digital economy, Smile ID’s innovative identity platform complements Mastercard’s commitment to fostering secure and inclusive digital ecosystems.”
Mark Straub, CEO of Smile ID, added, “By combining insights and technologies, we can expand opportunities for consumers by giving banks and mobile wallets the confidence to onboard the next 300 million African users securely, in seconds.”
The partnership between Mastercard and Smile ID is a significant step towards achieving financial inclusion and economic development in Africa. By providing secure digital identity solutions, the partnership will enable millions of Africans to access financial services, participate in the digital economy, and improve their economic well-being.
The expansion of the partnership is a testament to the growing importance of digital identity solutions in Africa. As the continent continues to experience rapid digital growth, the need for secure and reliable identity verification services will become increasingly important.
