Ajay Banga-led Mastercard on Thursday announced that it has committed an additional Rs 250-crore to help and revive small businesses in India, amid the COVID-19 outbreak.
Porush Singh, Division President for South Asia said, this investment is over and above the USD 1 billion and it is committed for the Indian market till 2025. The investment will mainly focus on helping small businesses to turn digital, making access to credit easier, and also empowering women entrepreneurs.
Porush further said, the company is making this investment as part of a global commitment of USD 250 million and was working towards increasing the power of entrepreneurs by allowing merchants to accept cards with `tap and go’ feature on their phones. It has also collaborated with Signzy to facilitate remote KYC of merchants.
He said the company has a goal to equip 1 crore, Indian merchants, with digital payment acceptance capabilities. It will mainly focus on small entrepreneurs like Kirana stores in getting access to credit by providing lenders with a transaction history.
The company will help the women entrepreneurs on increasing their business awareness by offering them marketing know-how and introducing their work to the buyers.
The experience remains the same for the Mastercard across other worldwide markets as well, he said with his experience in India does not change the way it looks at India from a long-term perspective.
He further said there are zero cross-border transactions with no purchases of air tickets, entertainment, and hoteling, leading to the drop in transactions, declining to specify how sharp a decline it has been.
However, there has been a huge hike in the online and contactless transactions but they are of low value, he said adding that there exists acceptance infrastructure.
Porush added the Rs 250-crore investment is over and above the company’s commitment to invest USD 1 billion in the country till 2025 and further said that it has already completed a USD 1 billion commitment cycle between 2014-19.