In a major effort to boost the digital economy, the financial services provider, Mastercard recently formed a partnership with Massmart to connect small, medium and micro-enterprises (SMMEs) for efficient digital commerce solutions.
Mastercard noted that the collaboration will facilitate the transition away from cash. The NYSE-listed giant in the global payment industry termed the partnership a major step towards its commitment to supporting SMMEs.
The adoption of digital payment methods has spiked since the outbreak of the coronavirus pandemic. Among emerging economies, South Africa is leading the digital transformation as 64% of residents have reduced or completely eliminated the use of cash since the pandemic began.
“We recognize the overwhelming pressure that small business owners are currently facing and are committed to helping them recover and come out stronger on the side. Through our partnership with Massmart, we support financial inclusion, especially among informal merchants, and help these businesses deliver best-in-class consumer experiences using affordable digital payment solutions,” Amnah Ajmal, the Executive Vice President of Market Development at Mastercard Middle East and Africa, said.
“Strategic partnerships like this are crucial to lowering technological and cost barriers in order to connect more small businesses to the digital economy, which aids inclusive economic growth and shows our commitment to drive a sustainable society,” Ajmal added.
Affordable Digital Payments
According to Mastercard, the company is planning to include 1 billion people around the world in financial services by 2025. Together with its partners, Mastercard aims to facilitate 50 million micro and small businesses.
“In South Africa, Mastercard has accelerated collaborations to advance affordable digital payments acceptance solutions such as QR and Tap on Phone - a contactless acceptance solution that turns any NFC-enabled Android device into a physical point of sale,” the company mentioned.
Last month, Mastercard introduced virtual card solutions for instant B2B payments to increase the efficiency of B2B operations.
