MICROCAPITAL BRIEF: MasterCard Labs for Financial Inclusion in East Africa Launched with $19m Donation from Bill and Melinda Gates Foundation

MasterCard, a US-based global payments and technology company, recently announced that it is launching the MasterCard Labs for Financial Inclusion, which is intended to generate new ideas and financial tools to promote financial inclusion in East Africa via a three-year grant in the amount of USD 11 million from the Bill and Melinda Gates Foundation, a US-based nonprofit that supports innovations in health, education and other fields. With the involvement of entrepreneurs, governments and other stakeholders, the lab will operate as part of MasterCard’s global research and development division. The grant is accompanied by an additional USD 8 million from the Bill and Melinda Gates Foundation that is earmarked to accelerate selected ideas that are generated at the labs from prototypes to commercial products.

As of December 2013, MasterCard reported total assets of USD 14.2 billion and 1.2 billion payment cards in circulation.

As of July 2013, the Gates Foundation has a total endowment of USD 36.4 billion, 1,100 employees and operations funded in approximately 100 countries.

By Simon Pfanner, Research Associate

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 December 2013, MasterCard reported total assets of USD 14.2 billion and 1.2 billion payment cards in circulation.

About Bill & Melinda Gates Foundation

Launched in 1994, the Bill and Melinda Gates Foundation (BMGF) is a US-based nonprofit organization that provides grants to organizations with the aim of enhancing health care, reducing poverty and expanding access to education and information technology. The foundation’s “Financial Services for the Poor” initiative focuses on providing people with secure places to save money. To support this initiative, the foundation works with financial organizations to increase access to technology and to forge partnerships among mobile phone companies, banks and microfinance institutions. As of July 2013, BMGF has a total endowment of USD 36.4 billion, 1,100 employees, operations in approximately 100 countries and has awarded USD 26.1 billion in grants since its inception.

Sources and Additional Resources

[1] MasterCard Press Releases, New Innovation Lab in East Africa to Expand Digital Financial Services

MicroCapital, December 8, 2014, UK Department for International Development (DFID), Bill and Melinda Gates Foundation to Create Digital Financial Services Unit in Pakistan

MicroCapital, November 19, 2014, Mozido Raises $185m from MasterCard, Wellington Management, Individual Funders to Expand Operations

MicroCapital, November 13, 2014, The MasterCard Foundation, Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO) Provide $6.5m to Launch Accion Africa Board Fellowship

MicroCapital, October 12, 2014, International Finance Corporation, Bill and Melinda Gates Foundation to Provide $3.9m in Advisory Services to Airtel Uganda to Expand Mobile Money

MicroCapital Universe Profile: MasterCard

MicroCapital Universe Profile: Bill and Melinda Gates Foundation

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