AFRICA – The global financial services corporation, Mastercard has signed a Memorandum of Understanding (MoU) with US based pay-as-you-go firm, Angaza to expand digital payment solutions in Africa and beyond.
The platform will provide payment options for solar home systems and water pumps clients in emerging markets around the world.
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.
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.
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.
“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,” said Jorn Lambert, Executive Vice President, Digital Solutions at Mastercard.
Angaza’s PAYG helps in keeping accurate records of payments that a user is making, and 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.
Angaza’s technology is said to have 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.
“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.”