Between 2020 and 2021, the impact public technology companies had on the LatAm market, in terms of GDP percentage, increased from 2.3 per cent in 2020 to 3.4 per cent in 2021. In light of this, Paymentology has partnered with Mastercard to bolster financial inclusion across some LatAm countries. Namely: Guatemala, Honduras and El Salvador.
According to a recent Mastercard and Americas Market Intelligence (AMI) study, while most Latin Americans gained access to basic financial products between 2020 and 2023, 21 per cent still rely exclusively on cash and are still excluded. Furthermore, in Guatemala, Honduras, and El Salvador, only one in four banked adults possess a debit or credit card. This further emphasises the obstacles in accessing the financial system within the region.
Mastercard, a founding member of the Partnership for Central America (PCA), has committed to bringing five million people and one million micro, small and medium enterprises (SMEs) into the digital economy. This includes 300,000 businesses run by women, over five years. The partnership reflects Mastercard’s commitment to building an inclusive digital economy where everyone, everywhere, can benefit from the technological revolution and reach their fullest potential.
As a member of the Mastercard Engage partner network since 2021, Paymentology has worked with Mastercard to build new and relevant financial inclusion solutions for its customers. Paymentology has supported Mastercard customers in quickly deploying these product innovations at scale.
Through an expanded partnership, Paymentology will continue innovating to help accelerate financial inclusion through its advanced issuer processing platform, offering an efficient go-to-market plan for issuers in the region and providing fast and seamless access to card issuance.
“Our partnership with Paymentology will help build a more robust and inclusive financial ecosystem in Northern Central America by providing the technology, expert support, and efficient processes new financial institutions and fintechs require to launch and grow,” commented Thiago Dias, senior vice president fintechs, enablers, and crypto at Mastercard Latin America and the Caribbean.
“Our goal is to ensure more Central Americans gain access to innovative, safe, and convenient financial solutions that connect them to the digital economy and improve their lives,” added Dias.
Solutions for unbanked and SME owners
Paymentology and Mastercard will work closely with partner financial institutions, fintech companies and telcos to encourage and enable them to offer accessible financial tools and solutions to unbanked and underbanked individuals and SME owners. Furthermore, these solutions encompass digital and physical debit or prepaid Mastercard card programs and micro business cards tailored to their specific needs.
Furthermore, consumers and business owners will access robust security features and the ability to make and receive digital payments for various purposes, including social benefits, remittances (including
person-to-person transfers), point-of-sale purchases, small business financing, and more.
“Together with Mastercard, we will serve the northern Central America region. We want to tackle the substantial gaps in the financial inclusion agenda by implementing efficient go-to-market strategies. By leveraging our expertise and technology, we aim to empower individuals and businesses, driving positive change and economic growth in the region,” said Alejandro Del Rio, regional director for LatAm at Paymentology.
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