Mastercard and Paymentology collaborate to expand financial access in Latin America, focusing on El Salvador, Honduras, and Guatemala.
In terms of a percentage of GDP, the influence of public technology businesses on the LatAm market increased from 2.3% in 2020 to 3.4% in 2021. Due of this, Paymentology and Mastercard have teamed up to promote financial inclusion in a number of LatAm nations. Specifically, El Salvador, Honduras, and Guatemala.
In spite of the fact that most Latin Americans got access to basic financial products between 2020 and 2023, 21% still only use cash and remain excluded, according to a recent report by Mastercard and Americas Market Intelligence (AMI). In addition, barely one in four banking adults in Guatemala, Honduras, and El Salvador own debit or credit cards. This emphasizes even more the difficulties in gaining access to the regional financial system.
Mastercard has committed to bringing five million people and one million micro, small, and medium-sized firms (SMEs) into the digital economy. Mastercard is a founding member of the Partnership for Central America (PCA). Over a five-year period, this includes 300,000 female-owned enterprises. The collaboration demonstrates Mastercard’s dedication to creating a global, inclusive digital economy where everyone can capitalize on the industrial revolution and realize their full potential.
Since 2021, Paymentology has collaborated with Mastercard to provide cutting-edge financial inclusion solutions for its clients as a part of the Mastercard Engage partner network. Mastercard customers have received assistance from Paymentology in scaling up the speedy deployment of key product developments.
Paymentology will continue to innovate through an expanded relationship to support the acceleration of financial inclusion through its sophisticated issuer processing platform, delivering an effective go-to-market strategy for issuers in the area and providing quick and easy access to card issuance.
According to Thiago Dias, senior vice president of fintechs, enablers, and crypto at Mastercard Latin America and the Caribbean, “our partnership with Paymentology will help build a more robust and inclusive financial ecosystem in Northern Central America by providing the technology, expert support, and effective processes new financial institutions and fintechs require to launch and grow.”
“Our mission is to make sure that more Central Americans have access to cutting-edge, secure, and practical financial solutions that link them to the digital economy and enhance their quality of life,” Dias continued.
Solutions for SME owners and the unbanked
In order to promote and empower them to provide accessible financial tools and solutions to unbanked and underbanked people as well as SME owners, Paymentology and Mastercard will collaborate closely with partner financial institutions, fintech businesses, and telecoms. These solutions also include micro business cards that are customized to their particular requirements, as well as digital and physical debit or prepaid Mastercard card programs.
The capacity to send and receive digital payments for a variety of uses, such as social benefits, remittances (including person-to-person transfers), point-of-sale transactions, small business finance, and more, will also be available to consumers and company owners.
“We will provide service to northern Central America in conjunction with Mastercard. By deploying effective go-to-market tactics, we want to address the significant gaps in the financial inclusion agenda. Alejandro Del Rio, regional director for LatAm at Paymentology, said, “We seek to empower people and businesses by using our knowledge and technology, fostering good transformation and economic prosperity in the region.