With as many as 67% of Egypt’s residents without a bank account, Mastercard and FinTech Kashat have signed a deal to digitize onboarding, disbursement and collections for the Middle East and North Africa, the companies announced Tuesday (Feb 8).
The five-year agreement comes as Egypt’s population of nearly 65 million people above the age of 15 is largely dependent on cash, according to CashMatters.org.
As a result of the collaboration, Egypt-based Kashat can issue prepaid cards to customers. It promises to offer them safe and convenient ways to withdraw money and make loan payments using Mastercard’s technology and payment rails. The partnership highlights both companies’ effort to drive financial inclusion in Egypt.
“Through our partnership with Mastercard we will … continue to champion serving the underbanked and contributing to the country’s mission of building a more financially inclusive Egypt,” said Sumair Farooqui, Kashat’s co-founder, in a statement.
Kashat said it serves as an entry point for many consumers to financial inclusion by enabling the un- and under-banked to create a financial identity. Smartphone users can apply for loans instantly from its mobile application.
Mastercard’s prepaid cards will allow Kashat to extend its services to the country, the company said.
Launched in 2020, Kashat said it is capitalizing on the significant potential for growth in Egypt’s FinTech and digital space. With internet availability around 60%, many adults remain underserved on access to financial services.
Last month, Jamaica announced its new central bank digital currency, due to be unveiled in the first quarter of the year, will help the country’s unbanked population.
Read more: Jamaica: CDBC Will Help the ‘Financially Excluded
Natalie Haynes, division chief at Bank of Jamaica (BoJ), said most Jamaicans are financially excluded and to get them into the formal financial system, BoJ decided that the central bank digital currency would be a good opportunity.
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