The Inter-American Development Bank (IDB), a US-based multilateral financial institution that seeks to support sustainable economic growth in Latin America and the Caribbean countries, has partnered with MasterCard Incorporated, a US-based payments and technology company with operations in 210 countries and territories, to expand electronic payment systems in Latin America and the Caribbean (LAC) [1]. This five-year partnership is expected to increase government transparency in the region by replacing cash-based systems. The provision of electronic payments services is also intended to enable organizations such as banks, microfinance institutions and governments to expand their financial services to reach more people who are traditionally excluded from such services. Details on the action items arising from the partnership have not been announced.
MasterCard is the first corporate partner to join IDB’s Transparency Trust Fund, which was set up in 2007 to finance projects that support the design and implementation of policies and mechanisms to increase access to information and fiscal transparency in IDB member countries.
By Nisha Koul, Research Associate
About the Inter-American Development Bank (IDB): The Inter-American Development Bank (IDB) is a US-based multilateral finance institution that was established in 1959 and operates in Latin America and the Caribbean to support sustainable economic growth to reduce poverty and inequality. IDB works with governments, companies and nongovernmental organizations (NGOs) to provide both loans and grants to support small and medium-sized enterprises (SMEs), health, education and other sectors. IDB also provides technical assistance and research in these areas. Its Board of Executives is elected by 48 member countries, 26 of which are located in Latin America and the Caribbean. IDB is headquartered in Washington, DC, with offices in Japan, France and all 26 member countries in Latin America and the Caribbean. As of December 2012, IDB reported total assets of USD 92 billion.
About MasterCard Incorporated: US-based MasterCard Incorporated is a payments and technology company. It connects consumers, financial institutions, merchants, governments and businesses in approximately 210 countries and territories. MasterCard’s products aim to facilitate commercial activities such as shopping, traveling, running a business and managing personal finances. As of December 2013, MasterCard reports total assets of USD 14.2 billion and 1.2 billion payment cards in circulation.
Sources and Additional Resources:
[1] Inter-American Development Bank (IDB), “MasterCard and IDB sign agreement to promote economic inclusion in Latin America and the Caribbean,” http://www.iadb.org/en/news/news-releases/2014-01-23/mastercard-signs-transparency-deal-with-idb,10739.html
MicroCapital Story, February 14, 2014, “EcoBank to Offer Mastercard in 23 African Countries,” https://www.microcapital.org/microcapital-brief-ecobank-to-offer-mastercard-in-23-african-countries/
MicroCapital Story, November 29, 2013, “Inter-American Development Bank (IDB) Approves $20m Loan to Edyficar of Peru to Support Housing Finance,” https://www.microcapital.org/microcapital-brief-inter-american-development-bank-idb-approves-20m-loan-to-edyficar-of-peru-to-support-housing-finance/
MicroCapital Story, September 4, 2013, “MasterCard, South African Social Security Agency (SASSA) Distribute 10m Biometrically Secured Debit Cards to Social Grant Beneficiaries,” https://www.microcapital.org/microcapital-brief-mastercard-south-african-social-security-agency-sassa-distribute-10m-biometrically-secured-debit-cards-to-social-grant-beneficiaries/
MicroCapital Story, June 12, 2013, “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 Story, May 14, 2013, “Inter-American Development Bank Promotes Psychometric Testing for Screening Loan Applicants,” https://www.microcapital.org/microcapital-brief-inter-american-development-bank-promotes-psychometric-testing-for-screening-loan-applicants/
MicroCapital Story, December 18, 2012, “Inter-American Development Bank to Allow Public to Select Programs Seeking to Improve Financial Inclusion for People with Disabilities in Latin America and the Caribbean,” https://www.microcapital.org/microcapital-brief-inter-american-development-bank-to-allow-public-to-select-programs-seeking-to-improve-financial-inclusion-for-people-with-disabilities-in-latin-america-and-the-caribbean/
MicroCapital Universe Profile, Inter-American Development Bank (IDB), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Inter-American+Development+Bank+%28IDB%29
MicroCapital Universe Profile, MasterCard Incorporated, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MasterCard
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