Mastercard and Johannesburg-based
fintech company SAVA have announced a partnership that will support small,
medium, and micro enterprises (SMMEs) through innovative payments technology
and infrastructure.
Through the partnership, the two
entities will provide small businesses in South Africa, Nigeria, Kenya, and
Egypt with an online platform, powered by SAVA’s Payment Transaction System
(PTS), that includes digital bank accounts and accounting integration tools,
helping them manage their company expenses more efficiently.
SMEs are responsible for 60% of all
jobs in Africa and as much as half of Gross Domestic Product (GDP) in some
countries. Yet they operate in a cash-based economy, and face a US$330 billion
financing gap, according
to the World Bank. The collaboration supports and reiterates
Mastercard’s financial inclusion pledge to bring 50 million SMMEs worldwide
into the digital economy by 2025.
By using advanced technology, SAVA
simplifies financial management for SMMEs and helps them scale their business
operations. As part of the agreement, the fintech player will provide SMMEs
with virtual and physical cards where budgets can be pre-configured and managed
via the SAVA app. By integrating the offering with their accounting packages,
SAVA’s customers will be able to control and manage spend on their employee
cards and save time and money by automating reconciliations.
“At
Mastercard, we are dedicated to harnessing the power of partnerships and
deploying transformative technology to build a sustainable future where
everyone can thrive. Our new collaboration with SAVA represents an important
step in our efforts to support small businesses that are key drivers of
economic growth. By deploying the right, efficient technology we continue to
boost financial inclusion in Africa and enable SMMEs to reap the full benefits
of the digital economy,” says Dimitrios Dosis, President, EEMEA,
Mastercard.
“Our
collaboration with Mastercard reflects our credibility, epitomizes the essence
of working together to transform pioneering ideas into reality, and underscores
our shared commitment to developing innovative solutions tailored to the needs
of African markets. We are excited to expand the utilization of this
distinctive proposition that empowers SMMEs to manage their financial
operations with greater control," says Kola Olajide, CEO, SAVA.
“SAVA
is now operating in Kenya and South Africa. Access Bank is our sponsor bank in
South Africa, while Microsoft is a supporting partner in bringing our vision to
life. We are grateful to the South African Reserve Bank (SARB) for believing in
our vision and granting us the required approvals to launch in South Africa. We
are also grateful to all our investors, notably Breega, Quona Capital and CRE Ventures,
for their support on the SAVA journey,” he added.
In addition to addressing pain points
around expense filing and management experienced by SMMEs, SAVA can be used to
issue physical cards for shoppers and control spending from a central
dashboard, eliminating the need for cash transactions. Moreover, SAVA
customers will be able to manage spending across different platforms accessing
an array of financial services.
Through this innovative
collaboration, Mastercard is enabling its partners to take control of their
consumer’s digital needs, interactions and experiences creating value in the
digital ecosystem and driving financial inclusion.
By: Nana Appiah Acquaye