MasterCard and Grooming Centre have signed a Memorandum of Understanding (MoU) that will see electronic payment solutions extended to 500,000 Small and Medium Enterprises (SMEs) in suburbs and rural parts of Nigeria.

Grooming Centre is a Nigerian micro-finance organisation that seeks to address the gaps in financial services by providing affordable loans to women-owned MSMEs.

Up until now, Grooming Centre disbursed these payments by cash or cheques, which are less efficient than electronic means. Under the MoU, the Grooming Centre will pre-load the funds onto MasterCard prepaid cards. Business owners can use their cards to withdraw funds at millions of ATMs or pay for goods and services at merchants that accept MasterCard payments in Nigeria and in over 210 countries globally.

“There are a huge number of MSMEs that do not have access to any form of formal financial tools or services. Through the provision of electronic payments, these business owners will enjoy more convenient access to capital, be able to better manage and track their spending, save for future needs and protect themselves against unforeseen risks,” says Godwin Nwabunke, Chief Executive Officer of Grooming Centre.

MasterCard and Grooming Centre will also work with various financial institutions to rollout payment devices including Mobile Point of Sale terminals, enabling these MSMEs to accept debit, prepaid and credit cards for the first time.

“Through this partnership, we will enable financial inclusion in communities where consumers have largely been unable to use formal payment products and have had to rely on cash,” says Omokehinde Ojomuyide, Vice President and Area Business Head for West Africa, MasterCard.”These payment solutions will help these MSMEs reduce the amount of cash they currently handle, increase sales, and improve cashflow while making it easier and safer for their customers to pay.”