Digital payments provide access to financial services for unbanked or underbanked people. By facilitating easier and faster transactions, digital payments can boost economic activities. They reduce the costs associated with cash handling and improve the efficiency of businesses, especially small and medium-sized enterprises (SMEs).

KaiOS Technologies, a provider of affordable smart-feature phones, has partnered with Mastercard to integrate digital payment solutions into its devices, the latter announced on September 25. Starting in Cote d’Ivoire and Nigeria, this collaboration aims to empower small and medium-sized enterprises (SMEs) in developing markets by making digital payment acceptance more accessible and affordable.

Jorn Lambert, Mastercard’s Chief Product Officer, stated, "Acceptance fuels a successful digital economy. Our goal is to make it easy for merchants, from micro-merchants in Cote d'Ivoire to larger enterprises globally, to accept digital payments as easily as consumers make them."

Through this partnership, KaiOS-powered devices will offer Mastercard’s secure payment options, enabling even the smallest businesses to accept payments easily via Mastercard QR Pay by Link. Shortly, they will also support contactless payments using Tap & Go technology. Signing up for this service is simple, requiring business owners to use their KaiOS device to enroll, authenticate with a one-time password, and start accepting digital payments.

The partnership will initially focus on African markets, leveraging local partners like Touch and Pay Technologies (TAP) and Wizzit to extend these solutions to merchants across the continent.

As one of the continent's most active investment sectors, fintech plays a critical role in driving financial inclusion and digital transformation. According to Mastercard, fintech start-ups in Africa have emerged as one of the most vibrant sectors for investment, attracting close to $3 billion in funding.

By integrating digital payment solutions into affordable KaiOS-powered devices, this initiative taps into a rapidly growing market. It will help bridge the gap for small and medium-sized enterprises (SMEs) that have struggled with adopting digital payments due to cost barriers, contributing to the expansion of Africa's digital economy and supporting further investment in fintech. This initiative is expected to significantly boost financial inclusion and the digital economy in underserved regions.

Hikmatu Bilali