Furthering longstanding financial inclusion
efforts to bring more people and small businesses into the digital
economy, the company will bring equitable financial tools,
investment and partnerships to cities across the U.S.
In its sustained efforts to build a more inclusive global
digital economy, Mastercard is investing $500 million in
Black communities over the next five years. This commitment
includes products, services, technology and financial
support, as well as concentrated investments that will focus on
providing Black-owned businesses and Black people access to
affordable financial tools and capital.
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"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," said Ajay Banga, Chief Executive Officer at
Mastercard. "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."
With half of all Black Americans excluded from the financial
mainstream and Black-owned small businesses excluded from funding
opportunities, the commitment 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 three 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 the quick and
effective distribution of essential financial support and access to
city programs. In collaboration with city leaders, Mastercard is
initiating efforts in seven cities including Atlanta, Birmingham,
Dayton, Los Angeles, New Orleans, New York City and St. Louis. As
part of these activities the company will bring together
identification, financial access and payment functionalities in one
place through Mastercard City Key, enabling more than 1 million
residents with digital access to essential financial tools and
support.
Initial projects include:
- In Atlanta, Mastercard is working with the Office of
Equity, Diversity and Inclusion and the Stand-up Atlanta initiative
to expand a disbursement program that provides rent relief to avoid
evictions.
- In Los Angeles, Mastercard, the L.A. Mayors Fund and
Accelerator for America will expand the Angeleno Card initiative,
which has already distributed more than $36 million to help more
than 100,000 L.A. residents hardest hit by the pandemic.
- In New York, Mastercard, the Mayors Fund to Advance New
York City and the City itself partnered to disburse aid digitally,
as well as enable emergency fundraising. These efforts have reached
24,000 NYC residents through more than 30 community
organizations.
City development teams will also have extended access to
Mastercard’s Inclusive Growth Toolkit and Recovery Insights
platform to help attract valuable investment into predominantly
Black—and often overlooked—neighborhoods.
2. Affordable financial tools and services. Financial
products like credit cards or business loans may leave out the
unbanked or underbanked—forcing them to use inconvenient and costly
payday lending, check cashing and remittance services. Mastercard
is working to dramatically reduce the cost and access to financial
products for Black families with a collection of digital services
being offered first through African American-owned fintech MoCaFi.
The digital Mastercard Money Connect Solutions will allow people to
send money to relatives affordably; enable real-time bill payment
and check deposits by phone; and help people manage wage
fluctuations and unexpected bills through earned wage access
instead of having to wait until payday.
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 increase capital
availability in minority communities. Mastercard has helped direct
$250 million in capital flow to Black-owned small businesses in the
U.S. since 2018 and is working to triple that amount through this
effort. The company is also investing directly in Black- and
minority-led startups and expanding its work with Black-owned goods
and service providers. Also, in collaboration with the National
Urban League, the Mastercard Center for Inclusive Growth is
fostering job creation and economic opportunity through the
development of Entrepreneurship Centers and Workforce Development
Pathways.
Today’s commitment builds on the company's efforts to drive
financial inclusion across the globe, leveraging our partnerships
across banks, telecommunications providers and fintechs and
bringing best practices and learnings across regions.
Over the last five years, Mastercard has brought 500 million
unbanked individuals into the global financial system, helping them
benefit from the digital economy. Following this success,
Mastercard has increased its goal to connect one billion people, 50
million small and medium-sized businesses worldwide to the digital
economy by 2025, with support for 25 million women entrepreneurs.
This will be achieved through targeted regional programs that
identify the specific needs of financially underserved populations,
- mobilize assets from across the company and draw on the expertise
of the City Possible network and Mastercard Center for Inclusive
Growth.
Mastercard’s full commitments to addressing racism are outlined
in the company’s ‘In Solidarity: Standing Against Racism and
Advancing Equal Opportunity for All’ action plan.
From Our Partners:
“Our goal in Birmingham is to become a Southern hub for
minority-owned small businesses. This partnership with Mastercard
is a major asset in reaching that goal,” said Randall Woodfin,
Mayor of Birmingham, Alabama. “Black business owners who are
looking to reach the next level, or those attempting to rebound
following setbacks from the COVID-19 global pandemic, now will be
able to find solid financial footing. This goes a long way in
creating a more even playing field for all our residents.”
“COVID-19 and peaceful protests for racial justice have laid
bare the deep inequities built into our laws and economy -- and
sparked a renewed urgency to close gaps in wealth, health, and
opportunity for Black Americans,” said Los Angeles Mayor Eric
Garcetti. “Every level of government must act to end structural
racism, but new policies aren’t enough. With Mastercard investing
in Black business owners and connecting communities of color to our
financial system, we can start bridging the divide between the
promise of economic justice and a reality of equality.”
“Thank you to Mastercard! In the City of St. Louis, we're
exploring ways this investment can support our youth and future
generations through expanded access to education, summer
programming, and financial literacy opportunities,” commented Lyda
Krewson, Mayor of St. Louis, Missouri. “I commend Mastercard
for building on their financial inclusion efforts by working with
American cities like us to close the racial and opportunity gaps
for Black communities created by generations of disparities. We're
thrilled to be partners in this important endeavor.”
“The pandemic has exacerbated structural inequities that have
existed for generations, casting a new light on economic and health
vulnerabilities in our communities of color,” said New Orleans
Mayor LaToya Cantrell. “Effective change requires a community
effort and a holistic approach for closing the racial wealth gap.
By leveraging Mastercard’s data insights and approach, we can
expand and sustain more financial opportunities for Black
communities and businesses in New Orleans.”
“2.2 million - 15% - of the nation’s small businesses closed
throughout the spring and summer due to COVID19. Minority-owned
businesses bore the brunt of the pain, with more than 26% of Black-
and 19% of Latino-owned businesses closing. Relief through the
federal paycheck protection program was uneven and inequitable, a
reflection of longstanding biases in our financial system leaving
minority-owned businesses underbanked and undercapitalized,”
commented Luz Urrutia, Chief Executive Officer of Accion
Opportunity Fund. Accion Opportunity Fund has worked with
communities of color across this country for nearly three decades.
With support from Mastercard, we are investing in our technology
platform to accelerate our lending and advising services to reach
and strengthen entrepreneurs of color."
“Our financial system has systemically disadvantaged and
excluded Black communities throughout this country’s history,” said
Frank Altman, Founder and Chief Executive Officer, Community
Reinvestment Fund, USA. “We can and must do better. As part of
our partnership with Mastercard, we are accelerating our efforts to
increase access to capital and credit for Black-owned businesses by
reexamining our credit products and rooting out hidden bias in
credit decisions. Our aim is to level the playing field for
economic growth.”
“Many Black families, shut out from the formal economy, struggle
to find affordable financial products and services that meet their
day to day needs,” said Wole Coaxum, Chief Executive Officer,
Mobility Capital Finance (MoCaFi). “Partnering with
Mastercard, we are building digital services that aim to bridge the
economic mobility gap for Black Americans and advance their ability
to affordably save, invest, and insure themselves against
risks.”
“Black entrepreneurs have battled decades of historical
disinvestment that have limited access to necessary resources and
funding that enable economic empowerment. And, research has shown
that Black small business owners have been disproportionately
impacted by the COVID-19 pandemic,” said Marc Morial, President and
Chief Executive Officer, National Urban League. “We are
proud to expand our long-standing partnership with Mastercard to
launch a new leadership institute that will equip community leaders
with necessary skills to combat these economic injustices in Black
communities.”
“We’re in the midst of a historical shift. Major events, like
we’re experiencing right now, can be instruments for change. We
have an opportunity to focus that change for good,” said Chef
Marcus Samuelsson. “Just as we chose to continue to serve the
communities of Harlem, Newark and Overtown in a time of need with
our resources there, Mastercard has also chosen to serve the needs
of the Black community in this time. By breaking down the systemic
barriers that have prevented economic justice and ensuring that
individuals and businesses thrive, we can bring back our
neighborhoods and restore our cities together.”
About Mastercard
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.
www.mastercard.com
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Mastercard Communications: Sarah Ely Email:
sarah.ely@mastercard.com Tel: 914.249.6714
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