MasterCard Incorporated, a US-based global payments and technology company, and the South African Social Security Agency (SASSA), a government-funded organization that distributes social grant funds, have distributed 10 million active MasterCard debit cards to individual beneficiaries in South Africa, replacing cash payments. The card allows for the authentication of the identities of social grant recipients by using identifiers such as fingerprints, voice detection and other personal information. These measures are expected to reduce fraud as well as the program’s administrative and operational costs.
The MasterCard-branded SASSA debit card can be used anywhere MasterCards are accepted to purchase items and check account balances. At select retailers, grant recipients will be able to withdraw money without incurring transaction charges. Recipients can withdraw cash at any automated teller machine (ATM), however this will incur transaction charges.
Twenty-two million social grant beneficiaries have re-registered for the new, “biometric security” system since its introduction in 2012. The SASSA’s grant program provides grants for a variety of need categories including disability, foster care, child support, and elder and veteran assistance.
As of July 2013, MasterCard reported total assets of USD 12.5 billion and 1.2 billion payment cards in circulation.
By Adrija Vaiciulionis, Research Associate
About MasterCard:
MasterCard is a global payments and technology company that is headquartered in New York, USA. It connects consumers, financial institutions, merchants, governments and businesses in approximately 210 countries and territories. MasterCard’s products facilitate commercial activities such as shopping, traveling, running a business and managing personal finances. As of July 2013, MasterCard reports total assets of USD 12.5 billion and 1.2 billion payment cards in circulation worldwide.
About South African Social Security Agency (SASSA):
The South African Social Security Agency (SASSA), established in 2005, is an agency of the South African government that administers the application, approval and payment of social grants to beneficiaries in categories including disability, foster care, child support, and elder and veteran assistance.
Sources and Additional Resources:
Bloomberg Business Week Article: Bonorchis, Renee. “MasterCard Chases Africa’s Poorest to Tap Continent’s Growth,” Bloomberg Businessweek,
http://www.businessweek.com/news/2013-08-21/mastercard-chases-africa-s-poorest-to-tap-continent-s-growth
MasterCard Press Release: “Ten Million SASSA MasterCard Cards Issued to South African Social Grant Beneficiaries,”
http://newsroom.mastercard.com/asia-pacific/press-releases/ten-million-sassa-mastercard-cards-issued-to-south-african-social-grant-beneficiaries/
MicroCapital, June 12, 2013, “MICROCAPITAL BRIEF: MasterCard Introduces “SME Online” Internet Payment Solution in Nigeria, “https://www.microcapital.org/microcapital-brief-mastercard-introduces-sme-online-internet-payment-solution-in-nigeria/
MicroCapital, July, 21, 2013, “MICROCAPITAL BRIEF: MasterCard, Nigeria National Identity Management Commission (NICM) to Produce 13 Million “National Identity Smart Cards,”
https://www.microcapital.org/microcapital-brief-mastercard-nigeria-national-identity-management-commission-nimc-to-produce-13-million-national-identity-smart-cards/
MicroCapital Universe: MasterCard
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MasterCard
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