Mastercard and Vconnect announced last Thursday that they have agreed to a partnership to provide MSMEs with Mastercard’s mobile payment solution, Masterpass QR.
The partnership will also ensure merchants will have access to an array of digital tools that will help to enable their online presence, ensure effective business management and provide access to finance.
Vconnect is one of Africa’s leading online business listing service and maintains a database of SME’s in Nigeria including their physical addresses, website address, and phone numbers.
Mastercard has been aggressively marketing its Quick Response (QR) contactless payment platform that gives merchants access to accept payments from their customers using a combination of a mobile phone and a barcode.
Though the press release does not reveal in detail how this partnership will work, it appears Mastercard will be tapping into Vconnects database of SME’s for marketing of this product.
Vconnect has over the years built a robust database of SME’s on its platform making it one of the leading search destinations for MSME’s online
See the press release below;
Lagos, Nigeria – 15 March 2018: Mastercard has partnered with Vconnect, Africa’s leading online business listing service, to empower Micro, Small, Medium Enterprises (MSMEs) as part of a shared commitment to drive financial inclusion and literacy in Africa.
Nigeria will be the first market to benefit from the partnership, which will be rolled out over a three year period. Vconnect will work closely with Mastercard and its partners to provide MSMEs with Mastercard’s mobile payment solution, Masterpass QR. Additionally merchants will have access to an array of digital tools that will help to enable their online presence, ensure effective business management and provide access to finance.
“With access to Masterpass QR, these merchants will be able to accept fast and secure digital payments, removing the need for cash,” said Omokehinde Adebanjo, Vice President and Area Business Head, West Africa, Mastercard. “Additionally merchants will be given access to skills that have the potential of helping the business owner to develop a sustainable business.”
Vconnect currently has a community of over one million MSMEs registered on its database. These businesses play a pivotal role in the growth of the economy.
Naveen Luthra, Head of Growth and Partnerships at Vconnect, added, “We are thrilled to partner with Mastercard to ensure we are working together to support Africa’s growth. This collaboration represents what is possible when we combine global capabilities with firsthand experience.”
According to the World Bank, MSMEs make up approximately 60 percent of employment and 40 percent of Gross Domestic Product (GDP) in emerging economies, indicating the vital role in economic development. In Nigeria MSMEs comprise about 96 percent of the country’s businesses.
However, these business owners often battle to access finance, with approximately 70 percent of smaller businesses in emerging economies lacking access to credit loans. Combined with a lack of critical financial literacy skills and gaps in infrastructure, many businesses fail.
“Through this partnership, we aim to bring about improvement in the way these businesses operate to drive growth and new opportunities,” said Adebanjo.
VConnect (VConnect Global Services Ltd) is a Lagos based online portal where people hire local service professionals for all their needs, from planning a wedding to renting a house to planning their next travel. Visit www.vconnect.com to find out more or register your business on business.vconnect.com
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