Mastercard has signed a global Memorandum of Understanding (MoU) with Angaza, a last-mile distribution technology, under which they will partner to roll out a digital payment solution to increase access to solar home systems and water pumps for the world’s emerging markets.

The global payments group said it will leverage Angaza’s pay-as-you-go (PAYG) embedded metering and monitoring technology. This will be combined with its digital payment solutions and infrastructure, including quick response (QR) technology, to unlock access to basic necessities and assist the world’s unbanked to start on a path to financial inclusion.

“We are delighted to be partnering with Angaza to bring access and inclusion to people and businesses around the world,” said Jorn Lambert, Mastercard’s executive vice president of digital solutions.

“This partnership will help consumers overcome hurdles, such as the significant cash outlay required to purchase critical items by leveraging micropayments, which in turn also helps to build their credit history. All of this is being made available via the Internet of Things (IoT), which is a great democratiser and is playing a critical role [in] providing safe, secure and accessible digital ecosystems.”

“This partnership will help consumers overcome hurdles, such as the significant cash outlay required to purchase critical items by leveraging micropayments, which in turn also helps to build their credit history. All of this is being made available via the Internet of Things (IoT), which is a great democratiser and is playing a critical role [in] providing safe, secure and accessible digital ecosystems.”

PAYG gaining traction

Mastercard comments that PAYG business models are coming to the fore around the world, enabling people to pay only for what they use and need. Angaza enables life-changing products, such as solar home systems, clean cook stoves and water pumps, to be sold at a low upfront cost. Consumers can then pay off the cost of the products over time.

“This is a pivotal collaboration for the last-mile distribution industry, bridging Angaza’s global PAYG solution with a leading digital payment provider,” said Angaza CEO Lesley Marincola.

“The addition of Mastercard’s QR technology to Angaza’s platform will allow solar distributors and their clients to process payments for life-changing products securely and efficiently, while opening doors to broader financial inclusion.”

To date, Angaza’s technology has enabled more than five million people in emerging markets across Africa, South America and Asia to purchase products. Following a pilot in Nigeria, Mastercard and Angaza will expand the program to other markets in Africa and Latin America, the companies said.