Mastercard has signed a global Memorandum of Understanding (MoU) with Angaza which will see the two companies partner 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.
Leveraging Angaza’s pay-as-you-go (PAYG) embedded metering and monitoring technology and Mastercard’s cutting-edge digital payment solutions and infrastructure including QR technology, this partnership will not only unlock access to the necessities but will also help people without access to credit or traditional banking services start on a path to financial inclusion.
“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,” said Angaza CEO Lesley Marincola. “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.”
The partnership follows the successful 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. 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.
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.
Additionally, this partnership could open fresh access to other financial services and tools. By keeping accurate records of payments that a user is making, the user can establish a verifiable digital identity and trackable credit history which was previously impossible to create or maintain. 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”, says Jorn Lambert, Executive Vice President, Digital Solutions at Mastercard.
To date, Angaza’s technology has enabled more than five million people in emerging markets across Africa, South America and Asia to purchase over one million life-changing products like solar home systems, water pumps, and clean cookstoves. Following the completion of a successful pilot with the BOP Innovation Centre in Nigeria, Mastercard and Angaza will expand the programme to other markets in Africa and Latin-America to bring as many people as possible into the financial fold.