Mastercard has signed a Memorandum of Understanding (MoU) with Angaza to rollout an efficient digital payment solution that increases access to affordable necessities, like solar home systems and water pumps, for people and businesses in emerging markets across the globe.
Mastercard’s cutting-edge digital payment solutions and infrastructure including QR technology will leverage on Angaza’s pay-as-you-go embedded metering and monitoring technology.
The partnership between the two companies 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.
The development follows the successful launch of Mastercard’s first pay-as-you-go 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.
The pay-as-you-go business models are emerging around the globe to give people the ability to pay for what they use, as they need it. The product adopted by Angaza allows 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.
The Executive Vice President of Digital Solutions at Mastercard, Jorn Lambert said “we are delighted to be partnering 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 micro-payments, which in turn also helps to build their credit history”.
He added that “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”.
Also speaking on the partnership, the Chief Executive Officer of Angaza, Lesley Marincola said “this is a pivotal collaboration for the last-mile distribution industry, bridging Angaza’s global pay-as-you-go solution with a leading digital payment provider”.
He said “the addition of Mastercard’s QR technology to Angaza’s platform will allow solar distributors and their clients to process payments for life-changing products securely and efficiently, while opening doors to broader financial inclusion”.