MasterCard, a US-based payments and technology company, and the International Finance Corporation (IFC), a member of the US-based World Bank Group that offers financial services to businesses and governments in developing countries with the aim of increasing economic growth, reportedly have pledged to establish a USD 250 million risk-sharing facility, which is expected to provide an unspecified number of people in emerging markets with access to small loans via payment cards. The facility will support local financial institutions by reimbursing them for a portion of losses resulting from lending to these individuals. The majority of borrowers will have low incomes and receive the loans in the form of MasterCard debit cards for consumer purchases.
According to a statement attributed to IFC CEO Jin-Yong Cai, this facility “…will benefit individuals and small businesses by improving the availability of non-cash financial services, which are safer, more transparent and more efficient than cash.”
IFC has 184 member countries and reported total assets of USD 77.5 billion as of fiscal year-end 2013. As of March 2015, MasterCard reported total assets of USD 14.6 billion and 2.2 billion payment cards in circulation in approximately 210 countries and territories.
By Makai McClintock, Research Associate
About International Finance Corporation (IFC):
The International Finance Corporation (IFC), a US-based multilateral development bank and member of the World Bank Group, offers loans, equity investments, advisory and risk mitigation services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2014, IFC has 184 member countries that drive its policies and approve disbursements. In June 2014, IFC reported total assets of USD 84.1 billion, net income of USD 1.4 billion and return on assets of 1.8 percent.
About MasterCard
Headquartered in the US city of Purchase, New York, MasterCard is a payments and technology company that connects consumers, financial institutions, merchants and governments in approximately 210 countries and territories. As of March 2015, MasterCard reported total assets of USD 14.6 billion and 2.2 billion payment cards in circulation.
Sources and Additional Resources:
AllAfrica.com Article: “Nigeria: IFC, Mastercard in U.S.$250 Million Risk Sharing Pact to Drive Financial Inclusion,” http://allafrica.com/stories/201504211245.html
MicroCapital Universe Profile: International Finance Corporation
MicroCapital Universe Profile: MasterCard
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