The health and economic consequences of COVID-19 have highlighted the critical need to support vulnerable populations, many of whom are disproportionately impacted.
In this time of global crisis, Mastercard has expanded its worldwide commitment to financial inclusion, pledging to bring a total of 1 billion people and 50 million micro and small businesses into the digital economy by 2025.
As part of this effort, there will be a direct focus on providing 25 million women entrepreneurs with solutions that can help them grow their businesses.
The extended commitment builds on Mastercard’s ongoing efforts to address the COVID-19 related health and economic challenges facing individuals all over the world, including in Sub-Saharan Africa.
“Financial inclusion remains key to unlocking the potential of Sub-Saharan Africa, and will become crucial as we support Governments in driving long-term, sustainable economic recovery. Digital transactions are both safe and efficient and giving access to these for as many people as possible, is an important part of supporting the most vulnerable parts of the population through the current situation. Our focus right now – beyond philanthropy – is to steadfastly continue collaborating with governments and private sector partners on solutions that are safe, viable, and most importantly, socially impactful for communities across the region,” said Mastercard’s Division President for Sub-Saharan Africa, Raghav Prasad.
At the 2015 Spring Meetings of the International Monetary Fund and the World Bank Group, Mastercard committed to bring 500 million excluded individuals into the financial system. It achieved that goal through more than 350 innovative programs across 80 countries.
The Mastercard Lab for Financial Inclusion – the technology company’s first lab focused on financial inclusion – is committed to empowering millions of Africans through the use of public-private partnerships, and the innovation of locally relevant technology solutions.
One such solution is the Mastercard Farmer Network, a mobile platform that improves market access, increases price transparency and digitizes payments to connect small farmers in Kenya, Uganda and Tanzania.
East Africa is also served by Kasha, an e-commerce platform optimized for women’s health and personal care. It offers confidential and convenient service, online/offline digital ordering and delivery to both urban and low-income rural areas.
In Uganda, Mastercard launched Kupaa in partnership with UNICEF Uganda and the country’s Ministry of Education.
It enables parents and caregivers to pay school fees and other school expenses with their mobile phones securely, easily, and in small payments when they are able, easing the burden of lump sum payments.
Mastercard also expanded its partnership with Unilever to create Jaza Duka (fill up your store) – a digital program for micro-merchants in Kenya with more than 18,000 duka owners already registered.
The program provides a micro-credit eligibility recommendation to Kenya Commercial Bank (KCB), which can then assess a retailer’s credit worthiness and extend credit for stock purchases.
Additional efforts include ongoing work on government disbursement solutions, wage digitization of private sector workers, solutions for gig workers, scaling efforts with fintechs, digital platforms and digital wallets/apps, solutions addressing needs of the financially vulnerable and the expansion of CityKey and Community Pass programs.
This announcement builds on Mastercard’s ongoing efforts to support an inclusive recovery by leveraging the company’s technology, capabilities and reach.
That work includes:
- In the first weeks of the global health crisis, Mastercard committed up to $25 million in seed funding to establish the COVID-19 Therapeutics Acceleratorin partnership with the Bill & Melinda Gates Foundation, Wellcome, The Chan Zuckerberg Initiative and others to help speed up the response to the COVID-19 epidemic by discovering, developing and scaling-up treatments for deployment around the world.
- Mastercard has committed $250 million in financial, technology, product and services support over the next five years to small businesses in many markets where it operates, supporting the vitality of businesses and the financial security of their workers.
- Mastercard is leveraging its network to provide support to governments around the world in a range of areas. This includes providing data insights to inform policymakers about the economic impact of the pandemic; increasing the speed and efficacy of aid disbursements to communities and business segments that need it most; developing donation platforms to enable emergency fundraising; and working with governments to assist business owners and consumers with cyber vulnerability assessments.