Mastercard, the global payment giant, has partnered with Mono, a Nigerian YC-backed open banking startup, to enable direct bank account payments without the need for cards or USSD codes. This partnership positions Mono closer to its goal of profitability by the end of 2024.
Mono’s CEO, Abdul Hassan, shared that the startup moved from negative to positive gross profit in 2023 and aims to further grow revenue by scaling its open finance tools. The Mastercard collaboration follows a prior partnership with Flutterwave, which enabled merchants to accept account-to-account payments through Mono’s DirectPay service. Since its launch in 2022, this payment option has facilitated transactions exceeding ₦5 billion.
Mastercard’s Payment Gateway System broadens Mono’s reach across key African markets, including Nigeria, Ghana, Kenya, and South Africa. This aligns with Mastercard’s ongoing efforts to digitize payments in Africa through innovative methods such as mobile wallets, QR payments, and now account-to-account (A2A) transactions.
While card-based payments remain dominant in many developed markets due to consumer familiarity, Hassan believes Nigeria’s market dynamics favor A2A payments. He cites their ease, perceived security, and instant settlement as advantages over cards, predicting rapid adoption in regions where alternative payment methods like QR codes have struggled to gain traction.
Mono’s long-term vision includes increasing its presence among consumers. The company already offers a web-based app that shows users how their bank accounts are connected to various fintech platforms and plans to launch a mobile app with expanded features.
For Mastercard, the partnership provides a foothold in Africa’s growing digital payments space, while Mono sees it as a critical step in becoming a household name in the region. Together, they aim to redefine how payments are processed and accelerate the adoption of seamless, cardless transactions in Africa.
