IFC & MasterCard to set up new risk-sharing facility
IFC has inked an agreement with MasterCard to set up a $250m risk-sharing facility.
IFC, a member of the World Bank Group, has inked an agreement with MasterCard to set up a $250m risk-sharing facility, aimed at providing millions of people in emerging markets access to electronic payments.
The risk-sharing facility will be designed to offer alternative coverage and share the settlement risk of participating emerging market financial institutions.
The move marks a crucial next step in two sides’ ongoing partnership to enhance universal financial access by 2020.
This will also lead to the launch of millions of new cards, among which majority will be debit cards targeting lower income customers.
In addition, the facility will increase the ability for new financial institutions to join the MasterCard network, target institutions with limited or no capacity to access a payment platform and reach small businesses that have only limited access to electronic payment services.
The partnership will aim at developing new payments solutions for institutions and customers in emerging markets with inadequate access, said MasterCard.
IFC executive vice president and CEO Jin-Yong Cai said: “The facility is a key step in the World Bank Group’s efforts to support the development and expansion of private sector electronic payments in emerging markets and reach our goal of universal financial access.
“It will benefit individuals and small businesses by improving the availability of non-cash financial services, which are safer, more transparent and more efficient than cash.”
MasterCard CEO and president Ajay Banga said: “To reach MasterCard’s goal of an additional 500 million people connected to financial services by 2020, we must all roll up our sleeves and get creative in how we build public-private partnerships.”