Mastercard announces $500 mn commitment for black communities across America

By Pavithra R

Mastercard, in its sustained efforts to build a more inclusive global digital economy, has announced an investment of $500 million for Black communities over the next five years.

The commitment includes technology, products, services, and financial support, besides concentrated investments that will focus on providing Black-owned businesses and Black people access to affordable financial tools and capital.

Over half of all Black Americans are excluded from the financial mainstream, and Black-owned small businesses (SMBs) excluded from funding opportunities. The investment is designed to foster inclusion by delivering immediate economic benefits while driving a lasting impact on economic growth for Black communities. Mastercard will focus on 3 crucial areas:

1. Expanding City Programs to Support Black Communities: Mastercard will bring the full range of its assets, including partnerships, technology, and data insights to ensure distribution of essential financial support and access to city programs. The firm in partnership with city leaders is initiating efforts in seven cities including Atlanta, Birmingham, Dayton, Los Angeles, New Orleans, New York City and St. Louis. Through Mastercard City Key, it will bring together identification, financial access and payment functionalities in one place.
2. Affordable financial tools and services: Mastercard is working to drastically reduce the cost and access to financial products for Black families with a suite of digital services being offered first through African American-owned FinTech MoCaFi. The digital Mastercard Money Connect Solutions enable people to transact money affordably; help people manage wage fluctuations and unexpected bills through earned wage access and enable real-time bill payment and check deposits by phone.
3. Capital and resources for Black-owned businesses: Mastercard will expand its relationships with Community Development Financial Institutions (CDFIs), including Accion Opportunity Fund and the Community Reinvestment Fund, to soar up the capital availability in minority communities. The firm is also investing directly in Black- and minority-led startups and expanding its work with Black-owned goods and service providers. 

“This is a time for action. We have an obligation as a corporate citizen to ensure the digital economy is enabled for all, an obligation to be part of the positive change Black communities so rightly need now. We are starting in cities across the country with on-the-ground efforts meant to drive out inequities and create the opportunities, connections and resources that will spark economic growth for the long term,” said Ajay Banga, Chief Executive Officer at Mastercard.

Recently, Flywire partnered with Mastercard to simplify cross-border tuition payments.

Established since 1966, Mastercard is a global technology company in the payments industry. The firm is committed to building a more inclusive digital economy that works for everyone. The firm is also making Environmental, Social, and Governance (ESG) central to its business model.