MasterCard has issued official principle issuer license to Botswana firm Letshego Holdings in Mozambique.
The license will enable Letshego, which operates as a banking institution, to engage in card issuance and ATM, or merchant, acquisition.
It will also allow Letshego to tap into payment value-adding services MasterCard offers, which includes financial literacy interventions, remittance solutions, and contactless technology.
Letshego Group CEO Chris Low said: "Letshego is a brand that is trusted across Africa and to be granted an issuer license from MasterCard will help grow our range of innovative and financially inclusive products and services.
"Our partnership with MasterCard is vital to achieving our goal of offering simple, appropriate and affordable solutions with the aim of improving the lives of our customers. We look forward to being able to work with MasterCard to further financial inclusion across the continent through this partnership."
The companies also intend to introduce further payment innovations into Mozambique market.