Global payments group Mastercard has partnered with Samsung, Airtel Africa and Asante Financial Services to launch a pay-on-demand payments platform enabling a safe, secure and convenient financing avenue for consumers, entrepreneurs and merchants.

The platform, which was built by Mastercard Labs, enables digital access to everyday products and services for underserved consumers and small and medium-sized and microenterprises (SMMEs).

Through Samsung’s pay-on-demand mobile devices, which are embedded with the secure Knox platform, and Asante’s insight as a provider of digital financial services, the innovative platform provides effective hand-set loans for consumers. Airtel Africa will coordinate the delivery of the product.

Further, the use of the product enables individuals or businesses to establish a digital transaction history, which can be used to make other financing solutions accessible, such as credit, savings, investments and insurance.

Opportunity

This would create an opportunity for small business owners and entrepreneurs to obtain financing to drive their business forward, as well as build digital capabilities for their everyday business.

It is envisaged that pay-on-demand users will also be able to access digital payments through Mastercard’s virtual card and Mastercard quick response code functionality on their Airtel mobile money app enabling them to make digital transactions across face to face and online merchants, says Mastercard Middle East and Africa market development executive VP Amnah Ajmal.

“As market organisers, we are always partnering with like-minded organisations to advance financial inclusion for individuals and SMMEs by empowering them with the right digital solutions. This pay-on-demand platform enables us to deliver on that promise, giving consumers an opportunity to participate in digital commerce while fostering digital and financial inclusion across the country.”

Subject to regulatory approvals, a pilot project will kick off in October in Uganda, with 14 markets being considered across Africa.

This builds on the broader digital transformation partnership between Mastercard and Airtel Africa across sub-Saharan Africa, as well as the global partnership with Samsung, to provide pay-on-demand mobile devices.

The other markets include Tanzania, Rwanda, Kenya, Nigeria, the Democratic Republic of Congo, Gabon, Malawi, Zambia, Madagascar, Seychelles, Chad, Niger and Congo Brazzaville.

World-Class Devices

“Samsung is proud to be the provider of world-class devices with an end-to-end security platform with always-on protection. This partnership will benefit the people across Africa starting with Uganda and will create affordable payment plans to access Samsung devices,” adds Samsung Africa CEO and president Sung Yoon.

Airtel Africa CEO Raghunath Mandava comments that the partnership will help Airtel’s feature phone customers upgrade to smartphones and pay with Airtel Money on flexible instalment plans.

“This opens up the digital economy and creates additional opportunities for Africa’s entrepreneurs.”