Mastercard Partners with Smile ID to Boost Secure Digital Identity Solutions Across Africa

Mastercard has strengthened its collaboration with Smile ID, a leading African identity verification company, to expand secure digital identity solutions across the continent. The partnership is designed to tackle fraud, streamline customer onboarding, and open up broader access to financial services in Africa’s fast-growing digital economy.

As part of the deal, Mastercard has acquired a minority stake in Smile ID, underscoring its long-term commitment to digital inclusion and innovation in Africa. The move comes as the region’s digital economy is projected to reach $1.5 trillion by 2030, with rising smartphone adoption creating both opportunities for inclusion and new risks of identity fraud. Synthetic identity fraud alone is estimated to cost African banks and lenders hundreds of millions of dollars each year.

Executives from both companies describe the partnership as a critical step toward building digital trust across the continent. “This partnership with Smile ID is a pivotal step in advancing digital trust and inclusion across Africa,” said Selin Bahadirli, Executive Vice President, Services at Mastercard EEMEA. She noted that fragmented identity systems slow down businesses and lock millions out of the digital economy, while Smile ID’s technology offers a reliable solution.

Smile ID integrates with government registries and trusted data sources across Africa, providing advanced fraud detection and verification capabilities. Its tools will now be embedded into Mastercard’s digital platforms, enabling near real-time onboarding of users and ensuring compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML) standards. This integration is expected to benefit Mastercard’s banking, fintech, telecom, and mobile money partners by improving fraud prevention and regulatory compliance.

Mark Straub, CEO of Smile ID, said the collaboration could reshape the continent’s digital economy by giving banks and mobile wallets the confidence to securely onboard millions of new users. “By joining forces with Mastercard, we can help turn the tide,” he said. “As we combine 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.”

source: business day