IDEMIA releases Converged Card for financial inclusion

By Sunniva Kolostyak

US identity and security solutions provider IDEMIA has developed Converged Card, a state-issued driver’s license with a payment credential, to bring more people into the formal economy.

IDEMIA, which is the biggest provider of driver’s licenses in the US, developed the solution in partnership with Mastercard to help those who currently have limited or no access to financial services.

Announcing the Converged Card at MoneyFest, the Money20/20 digital conference, Megan Heinze, President of Financial Institutions for North America at IDEMIA, said it will allow users to shop for everyday essentials through the card or digital application.

The Converged Card also supports state-subsidised programmes like unemployment benefits, housing and utility assistance and tax refunds, and will allow the government to reach people that need funding through the public sector faster than with a paper check.

“This card will address the foundational issues of financial inclusion, allowing all citizens to have access to financial services via a prepaid card, in an affordable and timely way, which will create a new and improved process to disburse state government funds,” Heinze said.

IDEMIA, which already works with over 75 per cent of states in the US to provide physical driver’s licenses, is currently working with several states on a digital driver’s license that will be able to function in the same way as the physical Converged Card.

Matt Thompson, senior vice president, Civil Identity for North America, IDEMIA, added that the identity specialist is talking to multiple state leaders interested in the opportunity to provide this type of solution to their residents.

“With IDEMIA and Mastercard in partnership, we believe the capabilities of a multi-functional card with combined payment and identifications will increase in importance due to the demand to get funds into consumers’ hands quickly and easily without compromising security.”

Miguel Gamiño Jr., Executive Vice President, Global Cities, Enterprise Partnerships, MasterCard, added: “This Converged Card solution is the result of Mastercard’s strategic partnership with IDEMIA, established in 2018 through City Possible, a unique global network for urban co-development. City Possible allows members to draw on the collective expertise and resources of all stakeholders in order to scale innovative solutions that address pressing global challenges. Over the past two years, we have collaborated to develop solutions that would enable financial inclusion worldwide.”