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.
The Mastercard-SAVA collaboration supports and reiterates Mastercard’s financial inclusion pledge to bring 50 million SMMEs worldwide into the digital economy by 2025.
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.
Says Kola Olajide (CEO, SAVA): “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,”
“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 adds.
According to the World Bank, 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.