A new partnership that will give global payment company MasterCard access to about 500,000 SMEs in Nigeria have been signed with Grooming Centre focusing on micro, small and medium scale enterprises (MSMEs) in peri-urban and rural areas in Nigeria.
Grooming Centre is a Nigerian micro-finance organization that seeks to address the gaps in financial services by providing affordable loans to women-owned MSMEs. Up until now, Grooming Centre disbursed these payments by cash or cheques, which are less efficient than electronic means.
Under the MoU, the Grooming Centre will pre-load the funds onto MasterCard prepaid cards. Business owners can use their cards to withdraw funds at millions of ATMs or pay for goods and services at merchants that accept MasterCard payments in Nigeria and in over 210 countries globally.
“There are a huge number of MSMEs that do not have access to any form of formal financial tools or services. Through the provision of electronic payments, these business owners will enjoy more convenient access to capital, be able to better manage and track their spending, save for future needs and protect themselves against unforeseen risks,” said Godwin Nwabunke, chief executive officer of Grooming Centre.
MasterCard and Grooming Centre will also work with various financial institutions to rollout payment devices including Mobile Point of Sale terminals, enabling these MSMEs to accept debit, prepaid and credit cards for the first time.
“Through this partnership, we will enable financial inclusion in communities where consumers have largely been unable to use formal payment products and have had to rely on cash,” said Omokehinde Ojomuyide, vice president and area business head for West Africa, MasterCard.
“These payment solutions will help these MSMEs reduce the amount of cash they currently handle, increase sales, and improve cash flow while making it easier and safer for their customers to pay.”
Research carried out by the Small and Medium Enterprises Development Agency and the National Bureau of Statistics shows that MSMEs represent 95% of registered businesses in Nigeria and account for 75% of the workforce.
“MSMEs are essential to the growth of Nigeria’s economy. Our collaboration with Grooming Centre not only supports the Central Bank of Nigeria’s Cashless Nigeria policy, but it will help this vital sector to connect more efficiently to the national and global economy,” said Ojomuyide.
