Mastercard Seeks Caribbean Fintech Partners to Enhance Financial Inclusion
KEY FACT: Mastercard is seeking partnerships with fintech companies in the Caribbean to enhance financial inclusion, especially for small and midsize enterprises (MSMEs). Significant portions of the Caribbean population remain unbanked, and Mastercard aims to address this through digital payment solutions and innovative fintech projects like Unqueue and MLajan Mobile Wallet. The initiative, supported by the European Union and the United Nations Capital Development Fund, aims to digitize financial services and boost economic growth in the region.
Image source: Mastercard
Mastercard Seeks Caribbean Fintech Partners to Enhance Financial Inclusion
Mastercard Inc., the American multinational payment card services corporation, is seeking fintech partnerships in the Caribbean to address regional financial challenges, emphasizing regulatory compliance and market entry. In return, Mastercard's call to action was accompanied by an offer of expertise in complying with regional regulations, market entrance, and the ability to license and certify products.
Dalton Fowles, Mastercard’s country manager for Barbados, Jamaica, Trinidad & Tobago, and the Eastern Caribbean, highlights the importance of digital payment solutions for small and midsize businesses (MSMEs).
“We’re more a network that enables various fintech to introduce new products into the market within the context of local regulations,”
MSMEs constitute a significant portion of the Caribbean economy, thus, improving financial services is crucial. Notably, a substantial portion of the Caribbean population remains unbanked, presenting opportunities for fintech solutions to foster financial inclusion and economic growth. This forms the justification for the need for FIntechs in the Caribbean to partner with the payment giant.
Fowles further cited the example of digital payments for small and midsize businesses, especially local mom-and-pop shops, and expressed hopes that tap-to-pay options will appear in the region soon. The Caribbean Development Bank reported that micro, small, and midsize enterprises (MSMEs) account for around 50% of regional jobs and contribute to 60% to 70% of GDP. Thus, Helping those small businesses can be a boon for the broader Caribbean economy.
The Caribbean Fintech Sprint for Financial Inclusion was launched last year with an open call for solutions to regional financial issues to be supported by the European Union and the United Nations Capital Development Fund. The winners were Unqueue and MLajan Mobile Wallet. Unqueue and MLajan Mobile Wallet have been recently recognized for their innovative solutions aiding market access for smallholder farmers and providing digital financial services in Dominica, respectively.
Image source: Mastercard
With the afore in mind, Mastercard’s white paper released in March 2024 covering remittances emphasizes the need for digital transformation in the Caribbean, where cash transactions still dominate many markets, highlighting opportunities for digitization and enhanced financial services. Reports from Mastercard studies carried out at some Caribbean markets have shown that 30% to 45% of their GDP is in cash, This and other reasons make the shreds of evidence to justify Mastercard’s belief that the Caribbean is ripe to be digitized.
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