Mastercard has collaborated with Boost to accelerate cash digitization in FMCG.
Takeaway Points
- Mastercard has collaborated with Boost to accelerate cash digitization in FMCG.
- The partnership will benefit FMCG distributors and retailers that use Boost’s digital commerce platform to digitize payments.
- Boost powers manufacturers and their last-mile distribution networks with radically easy technology, data, and growth services.
Why did Mastercard collaborate with Boost?
Mastercard said on Thursday that it has partnered with Boost, the business-to-business (B2B) commerce platform, to drive the growth of small businesses operating in last-mile fast-moving consumer goods (FMCG) distribution networks—the final stage of supply chains in which products are delivered to end users. This partnership will provide digital payment options, planted credit, and integrated supply chain finance solutions to micro, small and medium enterprises (MSMEs).
Amnah Ajmal, Executive Vice President, Market Development, EEMEA, Mastercard, while commenting about the partnership said, “Small businesses are the backbone of thriving economies, yet they often face significant barriers to growth. Through our partnership with Boost, we are strengthening the support ecosystem for MSMEs in emerging markets by providing essential digital tools and financing solutions to help them succeed in today’s digital economy.”
Mike Quinn, co-founder and CEO, Boost, said, “We are thrilled to enter this commercial partnership with Mastercard in the pursuit of our mission to enable small businesses in last-mile global distribution networks to thrive in the digital economy. We have already proven that our highly scalable platform, coupled with our WhatsApp ordering solution, can power cost-effective growth across multiple channels in urban, peri-urban and rural settings by providing end-to-end visibility, increased coverage and direct-to-retailer digital promotions. Mastercard will help us take our model to the next level to create transformative value for our customers and partners while fueling our global ambitions.”
How will this benefit FMCG distributors and retailers?
According to the report, the partnership will benefit FMCG distributors and retailers that use Boost’s digital commerce platform to digitize payments, connecting them to essential working capital and Mastercard’s acceptance solutions.
About Boost
Boost powers manufacturers and their last-mile distribution networks with radically easy technology, data and growth services. The company’s innovative platform digitizes end-to-end distribution in primarily offline channels and drives growth by providing a space for direct-to-retailer digital engagement and embedded financing to distributors and retailers.
Data by the International Finance Corporation (IFC) shows that MSMEs make up over 90% of all companies and account on average for 60-70% of total employment and 50% of the GDP worldwide. Still, according to the SME Finance Forum, they are currently encountering a roughly $5.7 trillion financing gap, which is equivalent to 1.4 times the current level of the global MSME lending, Mastercard said.
About Mastercard
Mastercard powers economies and empowers people in 200+ countries and territories worldwide. Together with our customers, we’re building a sustainable economy where everyone can prosper. We support a wide range of digital payments choices, making transactions secure, simple, smart and accessible. Our technology and innovation, partnerships and networks combine to deliver a unique set of products and services that help people, businesses and governments realize their greatest potential.
