Global payment provider, Mastercard is aiming to bring one billion people and 50 million micro, small and medium enterprises (MSMEs) into the digital economy by 2025. Taking a step towards achieving this goal, it has partnered with Boost, the business-to-business (B2B) commerce platform, to drive the growth of firms operating in last-mile fast-moving consumer goods (FMCG) distribution networks.
The collaboration with Mastercard will provide MSMEs using the Boost platform with digital payment options, embedded credit and integrated supply chain finance solutions. The multi-country partnership focuses on high-growth markets, starting in Egypt, Kenya, Nigeria, Ghana and South Africa.
Data by the International Finance Corporation (IFC) shows that MSMEs make up over 90 per cent of all companies and account on average for 60-70 per cent of total employment and 50 per cent of the GDP worldwide. Still, according to the SME Finance Forum, they are currently encountering a roughly $5.7trillion financing gap, which is equivalent to 1.4 times the current level of global MSME lending.
“Small businesses are the backbone of thriving economies, yet they often face significant barriers to growth. Through our partnership with Boost, we are strengthening the support ecosystem for MSMEs in emerging markets by providing essential digital tools and financing solutions to help them succeed in today’s digital economy,” said Amnah Ajmal, executive vice president, market development, EEMEA, Mastercard.
Mike Quinn, co-founder and CEO, Boost said: “We are thrilled to enter this commercial partnership with Mastercard in the pursuit of our mission to enable small businesses in last-mile global distribution networks to thrive in the digital economy.
“We have already proven that our highly scalable platform, coupled with our WhatsApp ordering solution, can power cost-effective growth across multiple channels in urban, peri-urban and rural settings by providing end-to-end visibility, increased coverage and direct-to-retailer digital promotions. Mastercard will help us take our model to the next level to create transformative value for our customers and partners while fueling our global ambitions.”
