Mastercard and global non-profit Accion today announced a first-of-its-kind partnership to bring their worldwide networks and resources together to transform millions of underserved micro and small businesses around the world. Through insights, innovations and investments, the organizations will power microbusinesses to successfully operate in, and benefit from, the digital economy, leading to greater financial inclusion, economic growth and job creation.
Micro-merchants, such as grocers and ‘mom and pop’ stores, operate largely in cash rather than safe and secure digitally-enabled transactions. And often, these businesses and the financial services providers that serve them are constrained by onerous, manual processes that are slow and expensive. Without automated tools to accurately record business interactions store owners struggle to build valuable credit history. This potentially leads to higher default rates, restricted lending, and presents obstacles for the individuals hoping to one day expand their businesses.
By introducing digital technology, services and training, Mastercard and Accion will help microbusinesses reach their potential, creating greater financial security for the individuals and families who depend on them, as well as growth opportunities for the communities they serve.
Michael Froman, vice chairman and president of Strategic Growth, Mastercard said: “This partnership is the start of something priceless. The digital transformation of financial services leads to faster, smarter and safer transactions, providing people around the world with the tools they need to achieve financial security, grow their businesses, create jobs, and improve quality of life for all.”
Michael Schlein, president and CEO of Accion said: “Mastercard’s unrelenting focus on innovation and inclusion is helping to unlock opportunity for millions of people to build a brighter future for themselves, their families, and their communities. We are thrilled to take our partnership to a new level. Together we will work hard to ensure that today’s digital transformation of financial services benefits those who have been left out or underserved by the global financial system.”
A $12 million grant for Accion is being independently provided by Mastercard's Center for Inclusive Growth Fund to digitize and modernize the financial service providers that serve this vital segment of society. This initiative will bring efficiency, transparency and scale to their operations, reaching up to 10 million people over four years.
The partnership will deliver impact through several foundational elements:
Mastercard (NYSE: MA), www.mastercard.com, is a technology company in the global payments industry. Our global payments processing network connects consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. Mastercard products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MastercardNews, join the discussion on the Beyond the Transaction Blog and subscribe for the latest news on the Engagement Bureau.
Accion is a global nonprofit committed to creating a financially inclusive world, with a pioneering legacy in microfinance and fintech impact investing. We catalyze financial service providers to deliver high-quality, affordable solutions at scale for the three billion people who are left out of – or poorly served by – the financial sector. For more than 50 years, Accion has helped tens of millions of people through its work with more than 90 partners in 40 countries. More at http://www.accion.org