PURCHASE, N.Y.—Mastercard has signed a global Memorandum of Understanding (MoU) with Angaza, a leader in so-called “last-mile distribution technology.”
The objective is to create a more efficient digital payment solution that increases access to affordable necessities, such as solar home systems and water pumps, for people and businesses in emerging world markets, according to the two organizations.
Leveraging Angaza’s pay-as-you-go (PAYG) embedded metering and monitoring technology and Mastercard’s digital payment solutions and infrastructure including QR technology, the “partnership will unlock access to the basic necessities and will also help people without access to credit or traditional banking services start on a path to financial inclusion,” Mastercard said.
Earlier Program Launched
The partnership follows the launch of Mastercard’s first PAYG application programming interface in Uganda last year, which combines low cost QR technology – an open and interoperable technology, with the Internet of things to lead more secure and efficient payments.
“PAYG business models are emerging around the globe to give people the ability to pay for what they use, as they need it,” Mastercard said in a statement. “The model adopted by Angaza allows life-changing products, such as solar home systems, clean cook stoves and water pumps, to be sold at a low upfront cost. Consumers can then pay off the cost of the products over a period of time.”
Currently, most payments on the Angaza platform are conducted via cash or mobile money. With the integration of Mastercard’s API, the solution will provide new levels of payment flexibility and affordability impacting the lives of millions of consumers across emerging markets, the company said.
‘Fresh Access’
“Additionally, this partnership could open up fresh access to other financial services and tools. By keeping accurate records of payments that a user is making, the user is able to establish a verifiable digital identity and trackable credit history which was previously impossible to create or maintain,” according to Mastercard. “This data gives companies and financial service providers the ability to put underserved populations on a new path to financial inclusion.”
“We are delighted to be partnering with Angaza to bring access and inclusion to people and businesses around the world. This partnership will help consumers to overcome hurdles such as the significant cash outlay required to purchase critical items by leveraging micropayments, which in turn also helps to build their credit history. All of this is being made available via the Internet of things, which is a great democratizer and is playing a critical role providing safe, secure and accessible digital ecosystems,” added Jorn Lambert, executive vice president, digital solutions at Mastercard.