MasterCard and IFC, a member of the World Bank Group, are establishing a risk-sharing facility, which is expected to provide millions of people in emerging markets access to electronic payments. It is all part of an effort to increase universal financial access by 2020.
To address these constraints, IFC and MasterCard are setting up a $250 million risk-sharing facility that will provide alternative coverage and share the settlement risk of participating emerging market financial institutions. It is expected to lead to the issuance of millions of new cards, the majority of which will be debit cards for lower income customers. The focus will be on countries where inclusion needs are the greatest or where payment platforms are nascent. Key aspects include:
• Increased ability for new financial institutions to join the MasterCard network and for existing ones to grow their payment services offerings and reach a wider segment of customers.
• Targeting of institutions with limited or no capacity to access a payment platform.
• Reaching small businesses and individuals who currently transact most of their business or financial activities in cash or have only limited access to electronic payment services.
IFC is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges.
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