Sylvia Duruson
Mastercard has forged a strategic alliance with Scale, an issuer orchestration partner, to accelerate the deployment of fintech services across Africa and the Middle East. This collaboration aims to dismantle technical and commercial barriers that have hindered fintech companies, aggregators, enablers, payment service providers (PSPs), and telcos from launching payment programs in these regions.
The partnership reflects Mastercard’s commitment to fostering innovative payment solutions and bridging the digital divide. By leveraging Scale’s expertise in the fintech landscape, Mastercard seeks to enhance financial inclusion and improve access to financial services throughout the area.
Amnah Ajmal, Executive Vice President of Market Development for EEMEA at Mastercard, emphasized the company’s dedication to working with local ecosystem players. The partnership with Scale aligns perfectly with Mastercard’s goals of driving growth in innovative payment solutions across the region.
Through this collaboration, Mastercard and Scale will offer comprehensive support to fintech companies and other ecosystem participants. This support encompasses various crucial aspects of launching and maintaining payment programs. These include securing BIN sponsorships, developing sustainable unit economics, designing and commercialising card and payment programs, and assessing profitability models.
The partnership will also focus on delivering exceptional customer experiences and co-creating inclusive value propositions geared for long-term growth. As the collaboration evolves, it will transform into a technology proposition, enabling any tech company to acquire Mastercard issuing capabilities through Scale.
Miranda Perumal, Co-Founder and CEO of Scale, highlighted the partnership’s role in addressing a major pain point for fintech companies. By providing a single point of contact and absorbing the complexities of seeking bank BIN sponsors and third-party processors, the collaboration allows fintech players to concentrate on their core business while Scale handles the intricacies of payment enablement.
Mastercard’s involvement extends to plugging its managed services into partners’ systems and overseeing card program implementation from start to finish. Post-launch, Scale will assist partners in growing their portfolios, driving revenues, and achieving profitability through insights into consumer behaviours, market dynamics, and competitive landscapes.
The benefits of this partnership extend beyond fintech companies to encompass a broad spectrum of ecosystem players. Financial institutions will find it easier to collaborate with stakeholders in the card value chain. Merchants will gain improved access to digital financial products and services, facilitating business growth.
Governments stand to benefit as well. The introduction of new financial offerings in the market is expected to reduce cash-based transactions, enabling greater participation in economic development and potentially boosting GDP growth.
This partnership between Mastercard and Scale represents a significant step forward in the fintech landscape of Africa and the Middle East. By addressing key challenges and providing comprehensive support, it paves the way for increased innovation, improved financial inclusion, and accelerated digital transformation in these regions.
As the fintech sector continues to evolve rapidly, collaborations like this play a crucial role in shaping the future of financial services. By combining Mastercard’s global expertise with Scale’s local knowledge, this partnership is poised to make a lasting impact on the financial ecosystem of Africa and the Middle East.
