The International Finance Corporation (IFC), part of the World Bank Group, has launched a new project to improve digital payment access for consumers and small businesses in emerging markets. The initiative aims to support banks and FinTech companies that currently face financial constraints preventing their full participation in global payment ecosystems.
The program provides $700 million in guarantees to mitigate credit settlement risks for financial institutions. Mastercard has committed $500 million to support this effort, aiming to bridge the gap for those currently reliant on cash transactions. The company emphasizes the urgency of expanding access to trusted financial services amid global economic uncertainty.
Visa has also joined the initiative to share credit settlement risks with the IFC. This facility is expected to support approximately $200 million in risk sharing over a five-year period. The partnership intends to help financial institutions provide more secure and reliable payment solutions to underserved communities and small enterprises.
Research from PYMNTS Intelligence indicates that nearly half of all small businesses intend to transition from cash and checks to digital payment methods. Despite this interest, many businesses continue to use legacy systems due to specific workflow requirements and the need for immediate liquidity in daily operations.
