Mastercard and fintech Juvo Extend Partnership to Build Digital Financial Identities in Latin America and the Caribbean
MIAMI – November 23, 2021 – Mastercard and Juvo announced today the formation of a multi-year partnership to transform economies and accelerate inclusive commerce in Latin America and the Caribbean (LAC). The two companies are extending their alliance to empower the unbanked and underserved to take more control over their financial lives through seamless security, innovative lending models and financial education.
The partnership builds on Juvo’s participation in Mastercard’s global startup engagement program, Start Path, where the company gained customized expertise from Mastercard, access to its diverse customer base through the network’s global scale as well as operational support. Mastercard has now underscored its partnership by making a capital investment in Juvo and committed to bringing the following key solutions to market:
- Pay on Demand & Financial Identity as a Service (FIDaaS): For consumers and small merchants, this solution enables the purchase of smart devices via an installment or pay-as-you-go model, making devices more accessible and affordable. In addition, the pay-as-you-go transaction data supplements Juvo’s FiDaaS solution that uses mobile phone payment history to help financial institutions make faster, more seamless lending decisions.
- Mastercard Financial Education Toolkit (MFET): Knowledge of financial tools can help people make the leap across the digital divide. Mastercard will provide free access to financial education materials to help users effectively manage their finances. MFET offers an intuitive financial education solution through curated lessons, personalized content, and gamification to promote sustainable financial health.
- Direct-to-Consumer Lending Program: Starting in Brazil, Juvo will launch its direct-to-consumer lending initiative by leveraging Fintech Express to launch its digital account and card issuing program. The program will target the unbanked and underserved population.
As Latin American consumers’ appetite for participating in the digital economy has reached all-time highs –nearly 70% of the population were mobile subscribers at the end of 2020 (GSMA) – the pandemic has underscored the challenges of being excluded from the digital economy. Mastercard and Juvo are solving for data gaps and creating simpler, more unified ways to enter the digital economy for millions of consumers and small businesses.
Advancing financial inclusion in the region is essential for a prosperous economy and fintech companies play a vital role. Mastercard takes a developer-first approach to working with fintech companies of all sizes and stages through its Mastercard Developers portfolio. As the partner of choice for fintech companies throughout the region, Mastercard is continuously extending its vast digital commerce platform and trusted global network by offering new services and integration tools that meet the unique demands of these partners.
“Across Latin America and the Caribbean, approximately 300 million people remain outside the reach of financial service providers, many operating in a cash-only system. Growing access to key financial services for hundreds of millions of credit-worthy people will be key to our recovery across the region,” said Kiki del Valle, Executive Vice President, Market Development, LAC. “We believe that a system based upon collaboration is the best model for managing digital interactions in future. We see our role as an enabler not holding personal identity data, but effectively serving the needs of those relying on the service and their users”, completes Kiki.
“Expanding and deepening our partnership is very strategic for Juvo in pursuing our mission of enabling hundreds of millions of consumers to establish and gain access to basic financial services. Mastercard shares our vision of expanding financial access and education to address the needs of financially underserved communities,” said Steve Polsky, Founder and CEO of Juvo.
This initiative builds on Mastercard’s ongoing efforts to address the economic challenges facing individuals in the region, contributing to its global commitment to include One Billion people in the digital economy and 50 million micro and small businesses in the digital economy by 2025.
Juvo is a pioneer of financial identities for the underbanked. The company’s mission is to create the YES Economy by closing the information gap for the 3.9 billion people worldwide who are locked out of the formal economy due to a lack of credit history. In partnership with leading mobile network operators and financial institutions, Juvo leverages previously untapped data sources to build comprehensive financial identities, allowing billions of underbanked consumers to qualify for credit and other financial services, often for the first time. Headquartered in San Francisco with regional headquarters in São Paulo, Juvo has built over 150 million financial profiles and unlocked more than a billion transactions to date.
About Mastercard (NYSE: MA)
Mastercard is a global technology company in the payments industry. Our mission is to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible. Using secure data and networks, partnerships and passion, our innovations and solutions help individuals, financial institutions, governments and businesses realize their greatest potential. Our decency quotient, or DQ, drives our culture and everything we do inside and outside of our company. With connections across more than 210 countries and territories, we are building a sustainable world that unlocks priceless possibilities for all.