Mastercard and Boost have partnered to drive the growth of small businesses operating in last-mile fast-moving consumer goods (FMCG) distribution networks. This will be the final stage of supply chains in which products are delivered to end users. This collaboration will provide digital payment options, embedded credit and integrated supply chain finance solutions to micro, small and medium enterprises (MSMEs).
Supporting Mastercard’s goal of bringing one billion people and 50 million MSMEs into the digital economy by 2025, the multi-country collaboration focuses on high-growth markets, starting in Egypt, Kenya, Nigeria, Ghana and South Africa.
“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,” said Amnah Ajmal, Executive Vice President, Market Development, EEMEA, Mastercard.
This strategic 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.
“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,” said Mike Quinn, co-founder and CEO, 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.
