The launch and incredible growth of digital financial services has led to an extraordinary number of people having access to financial services throughout Africa. One of the most recent partnerships set to bring greater access to financial services in Africa is between Mastercard and African fintech and Start Path company Paycode.
Accessible and Inclusive Financial Services
The partnership is set to provide the unbanked population in Africa with access to digital financial services through a biometric smart card and a digital bank account. Users will be able to swiftly access digital financial services offline and in-real time, even if they lack a formal identity document.
Mastercard’s Community Pass platform enables a person’s face or palm to be recognised at both online and offline locations. Users can, therefore, be recognised as the same person and make safe, secure and convenient transactions even if they lack a formal identity document.
Africa’s Unbanked Population
It is estimated that around 57 percent of the Sub-Saharan African population remains unbanked while close to 30 percent still lack a form of identification. And approximately 60% of the continent has no internet, leaving many people without basic access to financial services.
The partnership’s goal is to increase financial inclusion in Africa by onboarding 30 million people living in remote, offline areas across Africa over the next 3 years, giving them access to products and services with Paycode’s biometric smart card.
“Adding Inclusive ID functionality to Paycode biometric smart cards helps reach those currently excluded from critical government programs and ensures we are addressing basic financial needs of a dispersed population.” said Ricardo Pareja, SVP, Sales & Market Development, H&D for Mastercard.
We are confident in our view that the fintech industry will continue to thrive and disrupt traditional banking in Africa in a significant way, and Traderoot is excited to be part of this disruption. If you would like to learn more about innovation like this within Africa’s fintech space, contact us today and let’s set up a strategic overview of how we can assist your business.