QR payments solution launched to help provide simple and affordable payments for people and businesses in Uganda
KAMPALA, Uganda, 25 October 2018 -/African Media Agency (AMA)/- Mastercard in partnership with M-KOPA Solar and Centenary Bank, celebrated the first ‘pay-as-you-go’ QR transaction this week, officially launching the initiative, which provides a simple and inexpensive way to power the homes and businesses of Ugandans. M-KOPA, which already provides affordable, safe and clean energy to three million people in East Africa has launched Mastercard’s Quick Response (QR) payment technology in Uganda to facilitate and extend the reach of its groundbreaking pay-as-you-go solar program.
Ajay Banga visiting small shop to witness pay-as-you-go QR transaction
The launch of the program took place in Entebbe and was attended by Ajay Banga, president and chief executive officer of Mastercard, who made a special visit to Uganda to be part of the milestone ceremony.
According to the United States Agency for International Development, Uganda has one of the lowest electrification rates in Africa, at 22 percent for 2017. The partnership will provide Ugandan homes and businesses with clean and reliable solar energy, access to information and finance for a range of productive assets.
M-KOPA’s life-changing products combine lights, mobile phone charging, radios, smart phones, TVs and fridges. To connect to M-KOPA and start to build their credit history, customers pay a deposit and then small daily payments towards electricity that are usually less than what they would have spent on kerosene, candles and batteries over the same period of time.
Developed by Mastercard Labs, the new Mastercard’s pay-as-you-go API solution will empower M-KOPA and Centenary Bank to bring new payment innovation to the market, combining low cost QR technology – an open and interoperable technology, with the Internet of Things (“IoT”) to lead more secure and efficient payments in the market. Customers are enabled to make payments from their mobile phones by scanning a QR code or using an USSD interface.
Shop owner conducting pay-as-you-go QR payment for electricity
Ajay Banga, Jesse Moore and small shop owner
Many off-grid homes in Uganda are located in remote locations, where social and financial services are hard to reach. This partnership is aimed at helping these homes become healthier, wealthier and more connected. Across Africa 625 million people lack access to electricity, relying on kerosene, candles and batteries for power. These can be hazardous and bad for the environment. Solar has emerged as an important source of disbursed power generation but has traditionally required large, up-front investment.
“Access to basic necessities like electricity can unlock a better future for consumers on an individual basis and also help spur economic growth and empowerment for the country as a whole. The Mastercard QR technology helps provide new levels of payment flexibility and affordability and will have a real impact on the daily lives of thousands of consumers in Uganda. Digital technology is the ideal vehicle for promoting greater energy inclusion as it reduces the cost of delivery, increases efficiency and productivity thus opening up access to benefits and experiences that were previously unthinkable,” says Raghav Prasad, Division President of Sub Saharan Africa at Mastercard.
Nick Hughes, Co-Founder and Chief Product Officer, M-KOPA Solar says, “M-KOPA has proven that our flexible financing model, underpinned by IoT systems and telemetry, is a scalable and efficient way for millions of people to acquire life-changing services and products. For example, 94% of our customers report an improvement in their children’s ability to do homework after taking our basic lighting product. M-KOPA’s partnerships – including integration with the Mastercard QR payment platform – are opening up even more productive asset-financing services and infrastructure. ”
Centenary Bank’s Managing Director, Mr. Fabian Kasi highlighted that, “This tripartite partnership shall go a long way in enhancing our bank’s efforts geared towards promoting the use of clean and safe energy by our customers in the various communities we serve”.
He added, “The mode of payment is an affordable solution for our customers, many of whom live in rural areas with little or no access to electricity and other necessities including structured financing which this campaign addresses.”
M-KOPA is the world’s leading ‘pay-as-you-go’ solar and finance platform for off-grid homes. The company has developed a better way to provide affordable, safe and clean energy to millions of people in Africa. Thanks to the sun’s rays and mobile technology, customers can light up their homes, charge their phones, chill fresh produce and tune into the radio, Internet and TV. They can do all this at the flick of a switch and for less than they used to spend on kerosene. For more information visit: www.m-kopa.com.
About Mastercard Mastercard, www.mastercard.com, is a technology company in the global payments industry. We operate the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. Mastercard products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter: @MastercardMEA and @MastercardNews, join the discussion on the Beyond the Transaction Blog and subscribe for the latest news on the MEA Engagement Bureau.
About Centenary Bank Uganda
Centenary Bank is Uganda’s leading commercial microfinance bank with 72 branches and 176 ATMs across the country. We have been trusted by close to 1.6 million customers, a third of the total banking population in Uganda. Our mission is to provide appropriate financial services especially Micro-finance to all people in a sustainable manner and in accordance with the law.
