Mastercard Incorporated Free Report) teamed up with Zimbabwe-based financial services provider, The People’s Own Savings Bank (“POSB”), in a bid to introduce two cards that can fetch multiple benefits to the country’s residents. To roll out these cards, which include a debit and a prepaid card, the switching and payments company of Zimbabwe, Zimswitch, has extended a helping hand to Mastercard.
The Mastercard Debit card offers the benefit of transacting in two different currencies (United States Dollars [USD] or local Zimbabwean Dollars [ZWL]) using a single card for POSB account holders. At the time of making payments, the ease with which one currency can be converted to another remains commendable and has been made possible only because of the integration of the technical prowess of two renowned payment brands.
The prepaid Mastercard card is meant to empower individuals who do not hold a POSB account but can still make transactions in USD currency across local or international markets.
The sign-up process has been made hassle-free as only a national identity card and residence proof are required for availing the prepaid card. Subsequently, cardholders can deposit any amount in USD and initiate transactions. The prepaid card clearly keeps an eye to improve access to financial services for the non-account holder category of Zimbabwe.
The use of the two card offerings seems to be widespread in nature. They can be utilized across local points of sale (“POS”) machines and ATMs. Withdrawal of cash, payment of forex bills and tuition fees are some other noteworthy benefits of the cards.
Since the cards are packed with a comprehensive set of digital features, buying of goods and services related to entrepreneurial projects on e-commerce platforms can be done quickly and safely. Meanwhile, modernized security features, such as those of a PIN and EMV chip, are integrated within the card offerings that permit the safe pursuit of contactless payments. All these features have been injected to bring more people of Zimbabwe under the ambit of a booming digital economy.
The recent tie-up reflects Mastercard’s efforts to establish its footprint as a leading technology provider of innovative and secure payment solutions across Zimbabwe. MA not only puts intensified focus on launching diversified card offerings but also takes care to combine advanced security features within them as well. This seems time opportune, considering the growing incidence of cybercrimes that often comes hand-in-hand with online payments.
Per the latest FBI Internet Crime Report, malevolent cyber activity has given rise to losses of more than $10 billion in 2022 and a significant portion of such losses has affected small businesses. To bail its cardholders out of such a crisis, Mastercard expanded its ties with the renowned online protection solutions provider, McAfee Corp. The tie-up will offer an opportunity for Mastercard Business cardholders to reap the benefits of the Mastercard Easy Savings program and enjoy automatic savings on purchasing online protection solutions from McAfee.
Shares of Mastercard have gained 22.1% in the past six months compared with the industry’s 14.5% growth. MA currently carries a Zacks Rank #3 (Hold).