Mastercard, Smile ID partner to scale up merchant KYC in 50+ African countries

Mastercard’s Digital Merchant Onboarding Program (MDOP) has integrated Smile ID’s identity and document verification suite to facilitate merchant onboarding in Africa.

According to an announcement, the partnership will enable third-party partners such as banks, payment facilitators and mobile network providers to carry out digital identity verification in a way that is secure and convenient for their customers. With the integration, merchants can be digitally onboarded within three minutes.

The partners say they will use the new collaboration to scale up merchant KYC for over 50 African countries, including Nigeria and South Africa and help address problems related to traditional approaches to KYC due diligence and account opening, which are noted to be among the most pressing challenges for banks and other financial institutions.

“Traditional onboarding methods are often plagued with inefficiencies, high costs, and vulnerabilities to fraud. Our collaboration with Smile ID marks a significant advancement in the merchant onboarding process, setting a new standard for speed, security, and user experience,” said Sekai Ndemanga, senior vice president, head of Emerging Markets, Global Acceptance Team at Mastercard. “This move demonstrates our commitment to fostering a secure, inclusive, and efficient digital ecosystem for African businesses. Together, we are leading a transformative journey that drives inclusive growth and financial empowerment across the continent.”

Per the announcement, the integration means Smile ID makes available its suite of solutions including ID document verification, SmartSelfie biometric face authentication, government database checks, AML/PEP checks, business verification, bank account verification, fraud prevention, phone number verification, and e-signature capabilities.  This brings various advantages to different stakeholders such as financial institutions, merchants, fintechs and telecommunications companies.

Following the partnership, Smile ID CEO, Mark Staub, remarked: “Smile ID is thrilled to collaborate with Mastercard because of their commitment to financial inclusion and innovation. Our combined offering allows acquiring banks and payment facilitators to delight their customers with locally optimised signup experiences while maintaining global best practices for speed and security.”

Mastercard says the partnership is a “pivotal step” in the direction of supporting the scaling up of Africa’s financial inclusion endeavors by introducing at least one billion people into the digital economy by the close of next year.

The digital payments giant sealed a deal with the African Development Bank this year to deliver digital ID and facilitate financial inclusion for 100 million people in Africa in the next decade.

Article Topics

Africa  |  biometrics  |  digital identity  |  document verification  |  face biometrics  |  financial inclusion  |  KYC  |  Mastercard  |  onboarding  |  Smile Identity