The FINANCIAL — 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 high potential microbusinesses increase revenues and achieve greater financial security for the individuals and families who depend on them, catalyzing greater economic opportunities for the communities they serve.
Separately, 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.