Egypt: Fintech firm Kashat partners Mastercard to drive financial inclusion in Egypt

Global payments technology company Mastercard, has signed a five-year agreement with Egyptian fintech Kashat that will digitize the onboarding, disbursement, and collection processes for MENA’s first nano financial service provider.

The partnership will see enhanced financial services for people in Egypt and highlights both entities’ commitment to driving financial inclusion in the North African country.

Through the collaboration, Kashat will now be able to issue prepaid cards to users and offer them safe and convenient ways to withdraw money and repay their loans using Mastercard’s technology and payment rails, said a statement.

“We are committed to supporting fintechs and recognize the important role they play in complementing the efforts of the government and the Central Bank of Egypt to grow financial inclusion and a digitized economy in Egypt,” said Mohamed Assem, Country Manager Egypt, Mastercard. “Our new journey with Kashat heralds a future of increased collaboration, and we look forward to providing access to our solutions, services and expertise to Kashat as we look to drive financial inclusion among our communities,” he added.

Kashat serves as an entry point to financial inclusion by enabling the unbanked and underbanked to create and cultivate a financial identity; smartphone users can apply for small, short-term productive loans instantly from the FRA-licensed mobile application.

In December 2021, the start-up doubled its serviceable market to 67 million Egyptians, after expanding its operations to cover 14 governorates. Mastercard’s prepaid cards will allow Kashat to further extend its services to the masses.

“Through our partnership with Mastercard we will be able to launch a convenient and secure prepaid card product that will help us build a lasting relationship with our users, and continue to deliver reliable, innovative financial solutions. We will continue to champion serving the underbanked and contributing to the country’s mission of building a more financially inclusive Egypt,” said Sumair Farooqui, Kashat’s Co-founder.

Kashat launched in early 2020, capitalizing on the significant potential for growth in Egypt’s fintech and digital space. With internet penetration among Egyptians at around 60%, a large portion of adults remains underserved with regard to access to financial services.  The start-up has raised over USD 4.5 million to date.

Through its fintech partnerships, Mastercard is powering innovation and delivering a diverse range of seamless experiences that enable a more inclusive future for all. A curated, customized portfolio of Mastercard products, spanning payments, data, security, analytics and fraud management, empower fintech companies to operate as a trusted player in an evolving marketplace.