Mastercard has announced a collaboration with Scale, a fintech startup specializing in issuer orchestration, in a strategic move to bolster the digital payments ecosystem across Africa and the Middle East. This partnership is poised to significantly reduce the time to market for fintech companies and other key players in the digital payments industry, enabling them to launch new products and services more efficiently and with greater focus on their core business operations.
Accelerating Market Deployment for Fintech Companies
The collaboration between Mastercard and Scale is designed to alleviate many of the technical and commercial challenges that fintech companies, payment service providers (PSPs), telcos, aggregators, and other ecosystem enablers typically encounter when launching payment programs. These barriers often include securing BIN sponsorships, building sustainable unit economics, and navigating the complexities of the payments ecosystem.
Through this partnership, Mastercard and Scale aim to simplify these processes, allowing fintech companies to expedite their go-to-market strategies, streamline operations, and ultimately achieve profitability at a faster pace. By providing a comprehensive suite of services, Mastercard and Scale will enable fintech companies to focus on innovation and growth, rather than getting bogged down by the technicalities of launching and managing payment programs.
A Strategic Collaboration to Drive Financial Inclusion
According to Amnah Ajmal, Executive Vice President of Market Development, EEMEA, Mastercard, the partnership with Scale aligns with Mastercard’s broader mission to bridge the digital gap, enhance financial inclusion, and improve access to financial services across the region. “At Mastercard, we are committed to working with local ecosystem players to drive the growth of innovative payment solutions across the region with the aim of bridging the digital gap, enhancing financial inclusion, and improving access to financial services. With its in-depth knowledge of the fintech landscape, Scale is our ideal partner in achieving these goals,” she said.
Mastercard’s managed services will be integrated into the systems of its partners, running their card program implementation from end to end. This comprehensive support will extend into the post-launch period, with Scale assisting partners in portfolio growth, revenue generation, and achieving profitability by leveraging deep insights into consumer behaviors, market dynamics, and competitive landscapes.
A Holistic Approach to Ecosystem Development
The partnership between Mastercard and Scale is not limited to fintech companies alone; it is designed to benefit a wide range of players across the digital payments ecosystem. For financial institutions, the collaboration will facilitate smoother and more effective partnerships with stakeholders throughout the card value chain. Merchants will gain easier access to digital financial products and services, empowering them to grow their businesses and engage more effectively in the digital economy.
Governments stand to benefit from the increased availability of digital financial offerings, which will help reduce reliance on cash-based transactions and drive broader economic participation and GDP growth. For consumers, the partnership promises an expanded array of financial products and services tailored to meet their specific needs, enhancing their financial choices and fostering greater inclusion.
Long-Term Growth and Innovation
The partnership is expected to evolve into a comprehensive technology proposition, enabling any tech company to acquire Mastercard issuing capabilities through Scale. This development underscores the ambition of both companies to drive long-term growth and innovation in the digital payments space, not just in Africa and the Middle East, but potentially on a global scale.
Miranda Perumal, Co-Founder and CEO of Scale, highlighted the significance of this partnership for the fintech community: “Fintech companies move at speed and require commercially viable collaborations with experienced companies that cater to a cost-sensitive market. Through our exciting partnership with Mastercard, we are solving a major pain point and providing a single point of contact while absorbing the complexities of seeking a bank BIN sponsor, third-party processor, and other payment solution providers. This combined ecosystem service allows fintech players to focus on their core business, and us to focus on ours – streamlining processes, enabling payments, and supporting the program’s growth to earn revenues faster.”
Conclusion
Mastercard’s collaboration with Scale marks a significant milestone in the digital payments landscape of Africa and the Middle East. By removing key barriers to entry and enabling faster time-to-market for fintech companies, this partnership will play a critical role in advancing financial inclusion and driving economic growth across the region. As the collaboration evolves, it will likely set new standards for how fintech companies and ecosystem players collaborate, innovate, and scale in an increasingly digital world.
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