By Anusha Bhagat
American multinational financial services company, Mastercard, has entered into an agreement with the Andhra Pradesh government in order to create a “digital ecosystem“. This will focus on implementing a 4-pronged agenda for the state. Signed by Andhra Pradesh Chief Minister, Chandrababu Naidu, and Mastercard President & CEO, Ajay Banga, the pact will see the implementation of innovative payment technologies, that will help the state move towards a cashless society. It will also enable safe and secure digital solutions to be adopted at the state level.
Around the world, Mastercard has partnered with governments to unleash the power and potential of digital transformation. We can do this (the partnership) by empowering small farmers to access new markets and financial services through a digital marketplace created in India by our new Mastercard Labs. We can build on six transit programs in India with an interoperable open platform which means ease and accessibility for people in using more than one mode of transit, helping make cities more efficient, said Ajay Banga, the President and Chief Executive Officer of Mastercard.
FinTech Valley in Visakhapatnam
The MoU, which will be valid for two years, will help create a FinTech valley of global repute at Visakhapatnam, with the aim to digitally transform the states delivery of services to people, especially farmers. Mastercard, through a mobile app, will help create a marketplace solution for farmers to buy and sell their crops in a safer and simpler way, besides being able to get access to credit and transparent pricing. “The first task is to really work hard in enabling farmers to find access to the new ways to be able to get their produce to markets and connect to buyers and get paid for it in the form that does not allow middleman to get between them and take away what is theirs,” Banga told reporters at the MoU signing.
The pact will also include collaboration on a developing a smart city, along with transit solutions to help speed daily commutes and bring efficiency across public transportation system. Apart from this, Mastercard will work on cybersecurity to make digital payments secure, and hold a global conference in Andhra Pradesh annually from mid-2018 for the exchange of ideas. Lastly, the partnership will work towards enhancing financial and digital literacy through a knowledge sharing and skill development programme to support a Centre of Excellence at a leading university in Andhra Pradesh. The agreement is believed to digitally transform the technology sector in Andhra Pradesh. As part of the agreement, MasterCard will also organise business summits in Visakhapatnam every year.
$750 million in India by 2020
Global payments company, Mastercard, plans to invest another $750 million in India by 2020 to fuel its growth in the worlds second-fastest growing economy. This money will be used for organic growth and acquisitions, and in activities such as cybersecurity, digital payments, smart cities, and wallets. The planned investment of about $750 million comes on top of the $550 million that Mastercard invested in India over the last three years. Of its total global workforce of 15,000 employees, about 14 percent are employed in India. The management has said that Mastercard is committed to both ‘Make in India’ and ‘Skill India.
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