Pay on Demand: The Digital Path to Financial Inclusion

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Mastercard has released a white paper titled, ‘Pay on Demand: The digital path to financial inclusion in Africa’. The paper reveals how Pay on Demand, a business model that gives people the ability to pay only for what they use, as they need it, can lift millions of people across Africa.



The report is based on research from in-depth face-to-face interviews with Pay on Demand users across Kenya, Uganda and Nigeria. It examines the impact that Pay on Demand has on the end-users who may be making small payments daily and are realizing the benefits of products and services such as electricity, smartphones and television. Pay on Demand gives customers the flexibility to pay for services on terms that work for them – paying daily or monthly – and allowing providers to lend confidently.



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Pay on Demand model, according to the study is changing lives of customers by meeting their daily needs: Brightens dark nights, transforming people’s quality of life. This means an extra hour for a child to their homework, Many hours of daily entertainment and Can connect with family and friends because phone is always charged

Demonstrated Impact
The research also shows the far-reaching impact of Pay on Demand.
One of the indirect benefits of Pay on Demand is that it helps individuals and micro, small and medium enterprises establish a digital transaction history, making other financing solutions accessible, such as credit, loans and insurance.



By having relations with formal financial institutions, MSMEs can benefit from convenient and secure payment methods, and obtain financing to help them scale.
“There are 44 million MSMEs in sub-Saharan Africa, 97% of which are micro enterprises. For them, the assets made possible through Pay on Demand create improved opportunities through increased connectivity, and new revenue opportunities through being part of a financial system.” Said Gaurang Shah, Mastercard, Senior Vice President, Digital Payments & Labs, Middle East and Africa



A wide range of products and services are available through Pay on Demand models, including solar lanterns, grid components, smartphones and agricultural equipment.

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