Mastercard and FinTech Kashat have partnered to digitize onboarding, disbursement, and collections in the Middle East and North Africa, the companies said Monday. 67% of Egypt’s population does not have a bank account.
Egypt’s population of nearly 65 million people above the age of 15 is heavily reliant on cash.
As Egypt-based Kashat will be able to offer prepaid cards to customers due to the collaboration. Mastercard’s technology and payment rails promise to offer them a safe and convenient way to withdraw money and pay off loans. Through the partnership, both companies aim to help Egypt become more financially inclusive.
In a statement, Sumair Farooqui, Kashat’s co-founder, said, “Through our partnership with Mastercard, we will … continue to champion serving the underbanked and helping Egypt become more financially inclusive.”
Kashat said it is an entry point to financial inclusion for the unbanked and under-banked since it enables them to establish a financial identity. A mobile application provides instant access to loans for users of smartphones.
Kashat said that MasterCard’s prepaid cards will enable the company to offer services in the country.
Kashat said its 2020 launch is meant to capitalize on the significant potential for growth in Egypt’s FinTech and digital domains. With an internet availability of 60%, many adults are underserved when it comes to financial services.
Jamaica announced last month that its new central bank digital currency would help the country’s unbanked population when it is introduced in the first quarter of this year.
Bank of Jamaica (BoJ) Division Chief Natalie Haynes says most Jamaicans are financially excluded, and the central bank digital currency is a good way for them to gain access to the formal financial system.
