MasterCard, Grooming Centre Boost Financial Inclusion for MSMEs in Nigeria
Wednesday, February 25, 2015
Over 500,000 female entrepreneurs in Nigeria are to be introduced to electronic payments under a new partnership agreed between MasterCard and local microfinance institution Grooming Centre.
The Grooming Centre provides affordable microfinance loans to women running micro, small and medium enterprises (MSMEs) in Nigeria.
The partners signed a memorandum of understanding (MoU) agreeing that new loans to be disbursed by the Grooming Centre will be in the form of a pre-loaded MasterCard prepaid card, instead of the usual cash or cheque payments made to date.
The initiative is launched in a bid to introduce MSMEs to financial services, and the benefits and efficiencies of electronic payments. The partners hope the initiative will contribute to improving financial inclusion in Nigeria.
“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,” said Godwin Nwabunke, chief executive officer (CEO) of Grooming Centre.
Business owners will be able to use their cards to withdraw funds at millions of ATMs, or to pay for goods and services at MasterCard-accepting merchants worldwide.