Mastercard and Paymentology, a global payment processor, are strengthening their partnership to make it easier for fintech businesses in South Africa to issue cards.

This partnership, which was announced on Monday, will give fintechs the know-how, resources, and quick time to market required to handle the challenges of card issuance, opening up new avenues for digital transformation and financial inclusion.

According to the Fintech in Africa Report 2024, the fintech industry in South Africa is rapidly expanding and accounts for nearly 40 percent of all fintech revenue across the continent. Still, many fintechs struggle to effectively scale their payment solutions.

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Financial inclusion for unbanked communities 

By allowing fintechs to introduce card services that cater to both specialised use cases and underbanked communities, Mastercard and Paymentology are helping to close this gap and provide access to financial services where they are most needed.

Fintechs can easily establish and develop their card programs thanks to Paymentology’s scalable card processing and program management capabilities and Mastercard’s global payments, security, and infrastructure expertise.

The partnership allows for quicker and more effective card issuing in South Africa’s evolving digital environment by fusing Paymentology’s cutting-edge cloud-based technology with Mastercard’s vast network, which includes financial institutions, governments, and regulators.

Mastercard, Paymentology express commitment to the partnership 

“Our collaboration with Paymentology continues to evolve, driven by a shared vision of fostering an accessible digital economy. We are committed to equipping fintech companies with market-relevant solutions that enable them to scale effectively. Together, we are simplifying card issuance and creating new pathways for financial access for the underserved populations in South Africa,” said Gabriel Swanepoel, Country Manager, Mastercard Southern Africa.

Drisha Kirkman, Head of Programme Management and Sustainability, Paymentology emphasised, “Our long-standing relationship with Mastercard has been instrumental in driving next-generation payments innovation. This agreement solidifies both our companies’ commitment to advancing financial inclusion in South Africa. By leveraging our combined strengths, we are enabling fintechs to accelerate the delivery of impactful solutions to the market,”.

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Partnership aligns with South Africa’s National Development Plan 

This partnership encourages wider access to the digital economy, which is in line with South Africa’s National Development Plan, which seeks to attain 90 percent financial inclusion by 2030. This is a major step in creating a more inclusive financial ecosystem.

Mastercard, which now includes fintech companies, set a goal to bring 1 billion people into the digital economy by 2025. This goal has now been surpassed.

For fintechs to have a significant influence in South Africa and elsewhere, collaborations like the one with Paymentology must be strengthened in order to make financial services more inclusive, scalable, and accessible.