TONIK, MASTERCARD TEAM UP TO OFFER ELECTRONIC PAYMENT SOLUTIONS IN PH
Startup digital bank Tonik has teamed up with global payment technology firm Mastercard to roll out a range of electronic payment solutions that will contribute to financial inclusion in the Philippines.
In a joint statement with Mastercard on Thursday, Tonik unveiled plans to launch a full range of banking services, including a transactional savings account with a debit card, savings and term deposit accounts with attractive interest rates, as well as a range of consumer loans this third quarter 2020.
Debit Mastercard cards will be available to customers at the end of the year while additional services such as loans, credit cards and fund transfer categories will be made available in the course of 2021.
“We want to empower the underserved and unserved Filipinos by giving them simple, accessible and fast digital banking experiences. We want our customers to easily gain familiarity with transacting and banking digitally in order to help them harness the full potential of the rapidly changing digital economy. Our partnership with Mastercard is about injecting more speed, scale and performance into all facets of our business,” said Greg Krasnov, chief executive officer and founder of Tonik.
“Having immediate access to Mastercard’s global payment network, safety and security technology, data and analytics services, AI (artifical intelligence) technology, and cybersecurity capabilities will be essential to tonik’s growth and success in today’s digital-first reality,” he added.
The partnership is orchestrated by Mastercard Fintech Express, a tailored program which seeks to provide financial technology (fintech) firms such as Tonik with increased speed-to-market, access to a suite of digital-first products, and a pool of experts to provide strategic counsel and advisory across product, partnerships, licensing and legal to be able to build their offerings.
“The entire payments ecosystem thrives when fintechs have access to the technology they need to reach scale and make finances widely accessible. Tonik exemplifies an agile and innovative fintech whose ambition of driving financial inclusion in the Philippines through digital-first products and seamless consumer experiences is closely aligned with Mastercard’s mission to connect and power an inclusive, digital economy that benefits everyone. Tonik’s ability to secure a bank license as a startup is nothing short of exceptional and Mastercard is delighted to partner with them to enhance the Philippines’ digital banking space and to boost the nation’s financial inclusion journey,” said Rama Sridhar, Mastercard Asia Pacific executive vice president for digital and emerging partnerships and new payment flows.
With over 70 percent of the Philippine population having no access to formal banking channels, digital banks like Tonik seek to harness the high internet penetration of 67 percent and the critical mass of young adults or digital natives to promote digital banking. This is seen in support of the Bangko Sentral ng Pilipinas’ goal of doubling the number of Filipinos with formal bank accounts by 2023.
Founded in 2018, Tonik is launching its operations in the Philippines this year on the basis of its own bank license, with backroom support and research and development functions based in Singapore and Chennai, India.