MasterCard builds on local support for financial inclusion

MasterCard has signed a new, very local partnership with FinTech MoCafi and the City of New Orleans' Crescent City Card program. Financial inclusion and access to urban and social services are at the heart of this program, illustrating the multi-service capabilities of payment cards.

FACTS

• MasterCard's new commitment to the City of New Orleans will take the form of a card program designed specifically to combat underbanking and help recipients access a variety of social and practical services.

• The local government, led by LaToya Cantrell, has made $500,000 available to bring 125 local youth into the New Orleans guaranteed income program. Starting this December, they will receive $350 per month for ten months, loaded directly onto a MoCaFi and MasterCard.

• The contactless technology supported by the card will also give them access to the city's recreation centers, libraries, parks and public transportation services.

• The card is expected to be rolled out more widely, starting in the spring or summer of 2022.

CHALLENGES

• Reducing inequality: According to the mayor of the city of New Orleans, which has been hard hit by natural disasters, this new card is a way to include the unbanked, to offer them a means of accessing local aid and services that promote their integration.

• Promoting inclusion nationwide: New Orleans is one of seven cities supported by MasterCard's "In Solidarity" initiative, through which the payment company has committed $500 million to reduce inequality in the United States.

• Extending a partnership: MasterCard has a long history of working with MoCaFi, including participating in its financial support last February. At that time, the two partners were already planning to expand their joint work in support of local welfare initiatives.

MARKET PERSPECTIVE

• While digital payment methods are developing, the card remains an undisputed model in the payment market and associated services.

• Once again, MasterCard is demonstrating this today. The card remains a service medium in the broadest sense of the word, including payment in broader initiatives to support local populations, social benefits or access to services.

• There is no shortage of initiatives in this area, both in France and more widely in Europe and around the world.