Nigeria will be the first market to benefit from the partnership, which will be rolled out over a three-year period. Vconnect will work closely with Mastercard and its partners to provide MSMEs with Mastercard’s mobile payment solution, Masterpass QR. Additionally, merchants will have access to an array of digital tools that will help to enable their online presence, ensure effective business management and provide access to finance.
“With access to Masterpass QR, these merchants will be able to accept fast and secure digital payments, removing the need for cash,” says Omokehinde Adebanjo, Vice President and Area Business Head, West Africa, Mastercard.
“Additionally merchants will be given access to skills that have the potential of helping the business owner to develop a sustainable business.”
Vconnect currently has a community of over one million MSMEs registered on its database. These businesses play a pivotal role in the growth of the economy.
On the initiative, Naveen Luthra, Head of Growth and Partnerships at Vconnect has this to say:
“We are thrilled to partner with Mastercard to ensure we are working together to support Africa’s growth. This collaboration represents what is possible when we combine global capabilities with firsthand experience.”
According to the World Bank, MSMEs make up approximately 60% of employment and 40% of gross domestic product (GDP) in emerging economies, indicating the vital role in economic development. In Nigeria, MSMEs comprise about 96 percent of the country’s businesses.
However, these business owners often battle to access finance, with approximately 70% of smaller businesses in emerging economies lacking access to credit loans. Combined with a lack of critical financial literacy skills and gaps in infrastructure, many businesses fail.
“Through this partnership, we aim to bring about improvement in the way these businesses operate to drive growth and new opportunities,” Adebanjo adds.
Sourced from African Business Community.