Digital inclusion through pay-on-demand
Africa is ahead of other regions when it comes to using mobile money and deploying related solutions. According to GSMA, nearly half the world’s mobile money transactions happen in Africa.
“To advance financial inclusion in Africa, it’s crucial that we advance digital inclusion – enabling all African consumers and businesses to participate in this growing digital economy,” says Ngozi. “When small business owners are connected to a mobile device, they are also connected to better credit access opportunities.”
Mastercard’s Pay-on-Demand platform, built by Mastercard Labs, brings convenient financing opportunities to underserved consumers, entrepreneurs and merchants across Africa, helping to combat the socioeconomic problems they face from restricted access to financing.
One initiative that benefits from the innovative Pay on Demand platform is the digital partnership between Mastercard, Samsung, Airtel and Asante Financial Services Group. Samsung makes the mobile devices available at a low upfront cost, Airtel coordinates delivery of the product through its reach, and Asante facilitates the loan with affordable payments distributed over time.
As the product is used, the individual or business will establish a digital transaction history, which can be leveraged for making other financing solutions accessible, such as credit, savings, investments and insurance. For small business owners and entrepreneurs, this is particularly beneficial as it offers opportunity to obtain financing to drive their business forward as well as build digital capabilities for their everyday business.