Technology

May 9, 2024

Mastercard expands cross-border remittance choices for SMEs

Mastercard expands cross-border remittance choices for SMEs

By Prince Osuagwu, Hi-Tech Editor

Card payment company, Mastercard has vowed to help Nigeria expand the volume of cross-border remittances in Africa to bring the country’s economy close to global rating.

In this quest, the company joined forces with a leading multinational bank, Access Bank Group, to develop a product, Mastercard Move, which is said to have the capability of presenting business organisations, including the Small and Medium Enterprises, SMEs with variety of choices in cross-border payments.

Cross-border remittances play an important role in Nigeria and Africa’s economy in general, with flows to Sub-Saharan Africa increasing by approximately 1.9% in 2023 to $54 billion. Nigeria, Mozambique, Rwanda and Ethiopia, account for this strong remittance growth.

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With Nigeria already accounting for 38% of the remittance flows in 2024, the region is projected to increase by 2.5% in remittances by the end of the year.

Many African countries, including Nigeria where a large section of businesses are reliant on regional and international trade to drive economic growth, rely heavily on business to business, B2B Cross Border payments.

Unveiling the product in Lagos, yesterday, Mastercard said that by leveraging the network and treasury capabilities of Mastercard Move, Access Bank, will empower individuals and businesses to enjoy instant, traceable, seamless, and cost-effective international transactions.

The newly launched solution will be operational across Africa, with expansion plans in place. The solution offers a global gateway for businesses and individuals that are leveraging Access Bank’s understanding of the African markets.

Division President for Mastercard Africa, Mark Elliott, said:  “Empowering Access Bank customers with innovative solutions that prioritize choice, security, and flexibility is an achievement that fills us with great pride. This collaboration signifies our commitment to transforming payment experiences as it not only brings cutting-edge payment solutions to the bank’s diverse clientele, but also extends the reach of Mastercard’s financial and digital ecosystem, ensuring millions from underserved communities can actively participate in the evolving financial and digital economy”.

Also, Senior Advisory, Retail Banking, Access Bank, Robert Giles added: “We are thrilled to collaborate with Mastercard to advance financial inclusion in Africa through the Access Africa initiative. By combining our strengths, we can unlock new opportunities, bridge the financial divide, and create a more inclusive and prosperous future for all Africans” he added.