Click to watchMastercard has deepened its African strategy with a minority investment in Smile ID, the continent’s leading identity verification (IDV) provider. Announced on September 25, 2025, the deal extends their partnership and will accelerate the rollout of secure digital identity solutions across the continent.
Through the integration, Mastercard customers—including banks, telecoms, mobile money operators, and fintechs—will gain direct access to Smile ID’s verification tools for instant onboarding, fraud prevention, KYC/AML compliance, and cross-border expansion.
“This partnership with Smile ID is a pivotal step in advancing digital trust and inclusion across Africa,” said Selin Bahadirli, Executive Vice President, Services, Mastercard EEMEA.
Africa’s digital economy is projected to reach $1.5 trillion by 2030, yet more than 500 million Africans still lack a recognised form of ID. Where IDs exist, systems are fragmented and duplicative. In Nigeria alone, citizens must juggle a Bank Verification Number (BVN), a National Identity Number (NIN), and a Permanent Voter’s Card (PVC), leaving businesses struggling to verify users quickly and reliably.
This fragmentation has created an opening for identity verification (IDV) providers that aggregate data sources and deliver real-time, accurate responses on ID checks—crucial for seamless onboarding.
Click to viewThe identity solution provider race in Africa
While local rivals like VerifyMe and Prembly (fka IdentityPass), and global players such as Sumsub, Onfido, and Trulioo are also active in the market, Smile ID has emerged as Africa’s dominant KYC provider. In less than a year, it doubled its processed checks to 200 million, reflecting surging demand from clients including Flutterwave, Paystack, and Standard Bank.
Backed by a $20 million Series B in 2023 led by Costanoa Ventures, Smile ID has expanded its coverage—through both organic growth and acquisitions—and broadened its product suite to include fraud detection.
“The surge in synthetic identity fraud in Africa is costing banks and lenders hundreds of millions of dollars a year,” said Mark Straub, CEO of Smile ID.
Mastercard’s investment could tip the scales further, embedding Smile ID’s services across one of the world’s largest payment networks.
“By joining forces with Mastercard we can help turn the tide. 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.”
Mastercard’s Africa Strategy
The Smile ID deal builds on Mastercard’s broader push to embed itself in Africa’s fintech ecosystem. Five years ago, it launched Community Pass to digitise rural communities, which later underpinned its MADE Alliance with the African Development Bank to expand digital access to 100 million individuals and businesses over the next decade. In 2022, its Start Path Open Banking program backed African players like YC-backed Mono, though the open banking bet has yet to scale meaningfully on the continent. In 2023, Mastercard invested $200 million in MTN’s fintech arm, giving it exposure to 60 million active MoMo wallets across 13 markets.
Visa has taken a parallel approach with its Africa Fintech Accelerator, backing startups across payments, lending, and neobanking. Mastercard’s strategy, however, leans more heavily into infrastructure partnerships and large-scale commercial bets—positioning it as both an investor and ecosystem enabler.
As Africa’s digital economy accelerates, trusted identity verification is emerging as both a growth enabler and a frontline defence against fraud. With Mastercard’s capital and network, Smile ID can now move from startup success to becoming a core infrastructure player in Africa’s digital future.”
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