Mastercard announces capital investment & partnership expansion with MoCaFi
By Pavithra R
Mastercard has announced expanding its partnership with Mobility Capital Finance (MoCaFi), an African American owned FinTech providing mobile-first banking platform committed to bringing financially underserved communities into the digital economy, to bring alternate financial services to underserved communities with a specific focus on delivering tailored digital tools, and new payment cards to low wealth minority and Black communities.
The company has also announced furthering its commitment with a capital investment in MoCaFi. Both MoCaFi and Mastercard have been working together via the Mastercard StartPath program, aiming to help later-stage startups maximize their opportunity for success.
The new funding is expected to expand MoCaFi’s card programs and solutions to help address the inequities in the financial system for the underserved and support the company’s platform to provide wealth coaching, banking, and credit building services to the underbanked.
“As a neo bank focused on closing the racial wealth gap, MoCaFi sees a great opportunity to create market-based solutions that address the structural economic inequality that exists in this country. Social justice without economic justice is like one hand clapping. Mastercard’s investment into MoCaFi gives us the basis to scale our operations and create the impact that we seek to deliver – providing us another hand to serve communities,” said Wole Coaxum, Founder and CEO of MoCaFi.
The partners are planning to scale their collaboration in cities across the U.S. with a view to expanding access to vital city programs such as financial aid and social benefit programs. The team has launched initiatives in Honolulu to enable critical financial assistance and are supporting universal basic income pilots in SC, Newark, NJ, Colombia, and San Francisco, CA.
“Mastercard is leveraging our company resources – everything from our products, services, technology and financial support – to help close the racial wealth and opportunity gap. Partnerships are critical to achieving that goal, and we’re continuing to expand our support for and collaboration with Black entrepreneurs. By investing resources and capital directly in Black and minority-led companies like MoCaFi, we can build the capacity of those with a direct connection to underserved communities and help them to scale. We are optimistic that together we can start to drive the change needed to help everyone reach their potential,” said Michael Froman, Vice Chairman and President, Strategic Growth at Mastercard.
By partnering with Mastercard, MoCaFi delivers digital services that aim to close the racial wealth gap and advance Black Americans’ ability to save, invest, and insure themselves against risks affordably.
IBSi Daily News Analysis
August 12, 2022
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