Mastercard’s latest partnership in Africa is being hailed as a step toward financial inclusion, but it also raises difficult questions about who controls the future of digital identity on the continent.
The company has announced that it had extended its strategic commercial partnership with Smile ID, an African identity verification provider, to accelerate the rollout of secure digital identity solutions across the continent. The deal, unveiled in Nairobi, promises to give banks, fintechs, and mobile money operators new tools to onboard customers quickly, combat fraud and expand financial access.
“This partnership with Smile ID is a pivotal step in advancing digital trust and inclusion across Africa. As fragmented identity systems slow down businesses and lock millions out of the digital economy, Smile ID’s innovative identity platform complements Mastercard’s commitment to fostering secure and inclusive digital ecosystems,” said Selin Bahadirli, executive vice president for services at Mastercard EEMEA.
For Mastercard, the investment — which includes taking a minority stake in Smile ID — builds on five decades of working alongside African governments and businesses. The company argues that trusted identity systems are urgently needed as Africa’s digital economy is projected to reach $1.5 trillion by 2030. Smartphone penetration is rising, and so are the risks of fraud.
“The surge in synthetic identity fraud in Africa is costing banks and lenders hundreds of millions of dollars a year,” said Mark Straub, Smile ID’s chief executive in a press statement. “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.”
The partnership will integrate Smile ID’s fraud detection and local government data verification tools into Mastercard’s global platforms. Executives say this will enable instant onboarding across African markets, better compliance with Know Your Customer and Anti-Money Laundering rules, and new possibilities for cross-border commerce.
But for every promise of inclusion, there are concerns about surveillance, dependency, and control. Who owns and protects the biometric and identity data of millions of Africans? What safeguards exist against misuse by either private corporations or governments? Will global players like Mastercard dominate the digital identity space at the expense of homegrown solutions? And can promises of “trust” be squared with Africa’s patchwork of weak data protection laws?
These are not abstract questions. In several African countries, national ID programs have already sparked public backlash over data security, exclusion errors and links between identity systems and political control. The introduction of corporate-led digital ID systems adds another layer of complexity — one that could reshape how Africans access banking, healthcare, education and even the ballot box.
Mastercard and Smile ID insist their partnership is about solving Africa’s inclusion gap, not deepening it. Yet as the rollout begins, policymakers, civil society groups and consumers alike will be watching closely to see whether this model delivers empowerment — or reinforces old hierarchies in new digital form.