Mastercard, a leading technology company in the global payments industry, has signed a global Memorandum of Understanding (MoU) with Angaza, a leader in last-mile distribution technology, which will see the two companies partner to roll out an efficient digital payment solution that increases access to affordable energy for people and businesses in emerging markets across the globe.
Leveraging Angaza’s PAYG embedded metering and monitoring technology and Mastercard’s cutting-edge digital payment solutions, including QR technology, this partnership will help unlock access to basic necessities like solar energy and provide a better future for off-grid consumers, while also acting as a catalyst to spur economic growth.
The partnership follows the successful launch of Mastercard’s first PAYG application programming interface (API) in Uganda last year, which combines low-cost QR technology – an open and interoperable technology, with the internet of things (IoT) to lead more secure and efficient payments.
PAYG has emerged around the globe as a solution that gives people the ability to pay for what they use, as they need it. Angaza’s technology solution allows life-changing products, such as solar home systems, clean cookstoves and solar water pumps, to be sold at a low upfront cost by distributors. Off-grid consumers can then pay off the cost of the products over a period of time.
Advancing Financial Inclusion for Off-grid Consumers
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 off-grid consumers across emerging markets.
Additionally, this partnership could open up fresh access to other financial services and tools. By keeping accurate records of payments that a user is making, the user is able to establish 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.
“We are delighted to be partnering with Anagza to bring access and inclusion to people and businesses around the world. 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 providing safe, secure and accessible digital ecosystems,” says Jorn Lambert, Executive Vice President, Digital Solutions at Mastercard.
“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.”
To date, Angaza’s pay-as-you-go metering and monitoring technology has 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. Following the completion of a successful pilot with the BOP Innovation Centre in Nigeria, Mastercard and Angaza will expand the program to other markets in Africa and Latin-America to bring as many people as possible into the financial fold.
Mastercard (NYSE: MA), www.mastercard.com, is a technology company in the global payments industry. Our global payments processing network connects consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. Mastercard products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MastercardNews, join the discussion on the Beyond the Transaction Blog and subscribe for the latest news on the Engagement Bureau.
Angaza creates the technology that enables businesses to offer life-changing products to anyone, anywhere. With a technology solution designed for emerging markets, Angaza is revolutionizing last-mile distribution by removing upfront price barriers, enabling 1 billion consumers in emerging markets to pay for life-changing products in affordable amounts.
Angaza Communications Contact
Caitlin Inglehart, Director of Marketing