Mastercard and Egyptian FinTech Kashat have signed a five-year agreement that will digitize the onboarding, disbursement, and collection processes for MENA’s first nano financial service provider. This partnership aims to enhanced financial services for unbanked and underbanked people in Egypt.
Kashat will now be able to issue prepaid cards to users and offer them safe and convenient ways to withdraw money and repay their loans using Mastercard’s technology and payment rails. The partnership highlights both entities’ commitment to driving financial inclusion in Egypt.
“We are committed to supporting fintechs and recognize the important role they play in complementing the efforts of the government and the Central Bank of Egypt to grow financial inclusion and a digitized economy in Egypt. Our new journey with Kashat heralds a future of increased collaboration, and we look forward to providing access to our solutions, services and expertise to Kashat as we look to drive financial inclusion among our communities,” Mohamed Assem, Egypt Country Manager in Mastercard, said.
“Through our partnership with Mastercard we will be able to launch a convenient and secure prepaid card product that will help us build a lasting relationship with our users, and continue to deliver reliable, innovative financial solutions. We will continue to champion serving the underbanked and contributing to the country’s mission of building a more financially inclusive Egypt,” Sumair Farooqui, Kashat’s Co-founder, said.
Kashat serves as an entry point to financial inclusion by enabling the unbanked and underbanked to create and cultivate a financial identity; smartphone users can apply for small, short-term productive loans instantly from the FRA-licensed mobile application. In December, the start-up doubled its serviceable market to 67 million Egyptians, after expanding its operations to cover 14 governorates. Mastercard’s prepaid cards will allow Kashat to further extend its services to the masses.
Kashat launched in early 2020, capitalizing on the significant potential for growth in Egypt’s FinTech and digital space. With internet penetration among Egyptians at around 60%, a large portion of adults remains underserved with regard to access to financial services. The start-up has raised over USD 4.5 million to date.
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