Mastercard to connect 1 bn people to digital economy by 2025 | Daily News


 

Mastercard to connect 1 bn people to digital economy by 2025

Ajay Banga, Chief  Executive Officer  at Mastercard
Ajay Banga, Chief Executive Officer at Mastercard

In this time of crisis, Mastercard has expanded its worldwide commitment to financial inclusion by pledging to bring a total of 1 billion people and 50 million micro and small businesses into the digital economy by 2025. As part of this effort, there will be a direct focus on providing 25 million women entrepreneurs with solutions that can help them grow their businesses.

The impact of COVID-19 has made it even more pressing to support inclusive growth in Asia Pacific, which is home to 60 percent of the world’s population and the fastest-growing economic region. In an update in April, the World Bank said 24 million fewer people will escape poverty across the East Asia Pacific region this year than would have without the pandemic.

“If we’re going to recover in any sort of long-term, sustainable way, we have to make sure that everyone is included. Getting people access to the digital economy is a critical part of that,” said Ajay Banga, Chief Executive Officer at Mastercard. “This is so much more than philanthropy. This is an opportunity to develop commercially-sustainable and scalable social impact with government and private sector partners – and to do it in a way that helps society-at-large thrive.”

The new commitment – an extension of Mastercard’s pledge in 2015 to bring 500 million excluded people into the financial system – builds on the company’s efforts to address the pandemic-related health and economic challenges facing people all over the world.

“The COVID-19 crisis has demonstrated the power of the digital economy to sustain societies and commerce during times of great adversity. It has also shown the extreme disadvantage faced by small businesses and people who cannot participate. For individuals, gaining access to the digital economy means being able to use affordable financial products and services that meet their needs – transactions, payments, savings, credit and insurance,” said Ling Hai, Co-President, Asia Pacific, Mastercard.

“For SMEs, access to the digital economy allows them to manage expenses and invoices and to automate and secure processes, freeing up valuable time and resources to focus on other aspects of running their businesses. SMEs are the foundation of Asia Pacific economies, making up more than 96% of all businesses and providing two-thirds of private-sector jobs , so bringing them into the digital economy is a powerful force multiplier for societies. The urgent need to do so has never been greater.”

Over the past five years, Mastercard achieved its initial goal of including 500 million people in the digital economy through more than 350 innovative programs across 80 countries.

Reaching the 1 billion goal for financial inclusion will require a broad range of efforts, including ongoing work on government disbursement solutions, wage digitization of private sector workers, partnerships with mobile network operators, solutions for gig workers, scaling efforts with fintechs, digital platforms and digital wallets/apps and solutions addressing needs of the financially vulnerable.


Visit Kapruka.com Sri Lanka's Largest online shop. Over 125,000 unique categories such as Fresh Flowers, Cakes, Food, Jewllery, Childrens Toys and other Sri Lankan e-commerce categories. Low delivery cost to most cities here and free delivery in Colombo.

Add new comment