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How Mastercard is driving digital inclusion in Africa
Mastercard has announced a partnership with Samsung, Airtel Africa and Asante Financial Services Group (“Asante”) to launch a Pay-on-Demand mobile platform and drive the digital economy across Africa, that will help drive financial inclusion and can lead to improved economic possibilities for people and businesses. CNBC Africa spoke with Amnah Ajmal, Executive Vice President, Market Development, MEA for Mastercard for more.
Thu, 01 Oct 2020 09:03:16 GMT
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AI Generated Summary
- The partnership between Mastercard, Samsung, Airtel Africa, and Asante has launched a pay-on-demand mobile platform to foster financial inclusion and enhance economic opportunities for individuals and businesses in Africa.
- The platform enables users to access affordable handsets and loans, while also helping them build digital transaction histories to unlock access to credit, lending, and insurance.
- The initiative targets micro, small, and medium-sized enterprises (MSMEs) in Africa, providing them with the tools to overcome financial challenges and drive economic growth in their respective countries.
Mastercard has made a significant stride in driving digital inclusion in Africa through its partnership with Samsung, Airtel Africa, and Asante Financial Services Group to launch a pay-on-demand mobile platform. This initiative aims to foster financial inclusion and enhance economic opportunities for individuals and businesses across the continent. In an exclusive interview with CNBC Africa, Amnah Ajmal, Executive Vice President of Market Development, Middle East and Africa at Mastercard, shed light on the impact and potential of this innovative platform. The collaboration between Mastercard, Samsung, Airtel Africa, and Asante is a strategic move that exemplifies the power of partnerships in driving digital transformation and financial inclusion. The pay-on-demand mobile platform, developed by Mastercard Lab, directly addresses the socio-economic challenges faced by millions of consumers, merchants, and entrepreneurs due to lack of access to financing. Samsung's affordable pay-on-demand mobile devices, coupled with Asante's insights and Mastercard's platform, will enable greater access to affordable handsets and loans for consumers, merchants, and SMEs. Ajmal emphasized that this platform is not only empowering individuals and businesses with financial solutions but also enabling them to establish digital transaction histories. These transaction histories can be leveraged to access other financial services such as credit, lending, and insurance. The overarching goal of the partnership is to bridge the digital divide and advance Mastercard's mission of including one trillion people in the digital economy by 2025. The impact of the pay-on-demand platform extends beyond individual users to micro, small, and medium-sized enterprises (MSMEs) in Africa. MSMEs play a vital role in the economy, accounting for a significant portion of jobs and GDP in the continent. Despite their importance, many MSMEs face challenges in accessing credit and financial services. The pay-on-demand platform offers a unique opportunity for MSMEs to build digital transaction histories, enabling them to access much-needed financing products. By unlocking access to credit and lending, this platform has the potential to drive economic growth and prosperity for MSMEs in Africa. The scope of the pay-on-demand platform spans across 14 different countries in Africa, presenting a tremendous opportunity for economic transformation in these regions. Ajmal highlighted that SMEs are crucial for driving economic growth and job creation, and the platform addresses their unmet financial needs. The long-term impact of the platform on these economies could be substantial, paving the way for greater financial inclusion and economic empowerment. However, the journey towards digital inclusion in Africa is not without its challenges. Ajmal acknowledged that there are obstacles that need to be addressed to accelerate digital transformation on the continent. Mastercard's strategy of partnership and collaboration has been instrumental in overcoming these challenges. Initiatives like the WorldChirCard solution, QR capability, and the pay-on-demand platform are tangible examples of how technology can bridge the digital divide and drive financial inclusion. Furthermore, partnerships with organizations like Kopa Solar have enabled Mastercard to expand its impact and bring light to homes and businesses. By leveraging technology and strategic alliances, Mastercard is actively contributing to the advancement of digital inclusion in Africa, with a focus on empowering individuals, MSMEs, and economies across the continent.
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