Washington, DC, April 26, 2018—Mastercard
and IFC, a member of the World Bank Group, today bolstered their partnership
to drive financial inclusion, updating a $250 million global risk-sharing
facility to expand access to electronic payments in emerging markets.
Electronic payments help underserved people
and small businesses more fully participate in the formal economy. Yet,
financial institutions in emerging markets often have difficulty covering
their transaction settlement obligations, making it harder to rapidly scale
financial services where they are needed most.
Updating an agreement
originally signed in 2015, the
revised agreement between IFC and Mastercard helps financial institutions
in developing countries participate in the Mastercard network more effectively
through a program in which IFC will guarantee up to 100 percent of the
settlement risk. The new agreement will support a major expansion of the
program to more participating banks and financial institutions.
Stephanie von Friedeburg, IFC chief operating
officer said, “This partnership will help bring modern financial services
to underserved people around the world. It allows us to pool our capabilities
in risk management and financial technologies, and to leverage our global
network of financial institutions to deliver financial inclusion.”
With the revised agreement, Mastercard will
extend its efforts to identify, develop and implement programs with participating
financial institutions. This will improve access to electronic payments
for millions of people in emerging markets. The company will also continue
to support a separate
2016 agreement with IFC to increase
acceptance of electronic payments among small businesses and micro entrepreneurs
in the same markets.
“True inclusion is not something any one
entity can deliver on its own,” said Michael Froman, vice chairman and
president, strategic growth at Mastercard. “It’s partnerships like this,
combined with technology and know-how, that are truly driving greater inclusion
in emerging markets. The programs the facility is developing around the
world are vital to bringing people and communities into the financial system
and on a path to prosperity.”
Mastercard’s broader work with the World
Bank Group is helping to increase universal
financial access by 2020. In 2015,
the company committed to reach 500 million people previously excluded from
financial services within five years. Today, the company has connected
more than 330 million people around the world through programs like the
Mastercard-IFC public-private partnership, with more to come.
IFC—a sister organization of the World Bank
and member of the World Bank Group—is the largest global development institution
focused on the private sector in emerging markets. We work with more than
2,000 businesses worldwide, using our capital, expertise, and influence
to create markets and opportunities in the toughest areas of the world.
In FY17, we delivered a record $19.3 billion in long-term financing for
developing countries, leveraging the power of the private sector to help
end poverty and boost shared prosperity. For more information, visit www.ifc.org.
(NYSE: MA), www.mastercard.com,
is a technology company in the global payments industry. Our global
payments processing network connects consumers, financial institutions,
merchants, governments and businesses in more than 210 countries and territories.
Mastercard products and solutions make everyday commerce activities
– such as shopping, traveling, running a business and managing finances
– easier, more secure and more efficient for everyone. Follow us
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