Mastercard, the global payments company, has inked a global Memorandum of Understanding (MoU) with Angaza, a last-mile distribution technology, under which the two will partner to roll out a digital payment solution that increases access to solar home systems and water pumps for emerging markets around the world.
In a press release, Mastercard said it will leverage Angaza’s pay-as-you-go (PAYG) embedded metering and monitoring technology, combining that with its digital payment solutions and infrastructure, including QR technology, to unlock access to basic necessities and help the unbanked start on a path to financial inclusion.
“We are delighted to be partnering with Angaza to bring access and inclusion to people and businesses around the world,” said Jorn Lambert, executive vice president of digital solutions at Mastercard, in the press release. “This partnership will help consumers 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 [in] providing safe, secure and accessible digital ecosystems.”
According to the payment company, PAYG business models are coming to the fore around the world, enabling people to pay only for what they use and need. Angaza enables life-changing products, such as solar home systems, clean cook stoves and water pumps, to be sold at a low upfront cost. Consumers can then pay off the cost of the products over a period of time.
“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 in the same press release. “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.”
To date, Angaza’s technology has enabled more than five million people in emerging markets across Africa, South America and Asia to purchase products. Following a pilot in Nigeria, Mastercard and Angaza will expand the program to other markets in Africa and Latin America, the companies said.