VPS, Mastercard team up to advance digital payments in Morocco
Vantage Payment Systems (VPS), a Morocco-based payment services company, has entered into a collaboration with Mastercard (NASDAQ: MA) to enhance the state of digital payments in the North African country.
According to a report, the collaboration will seek to improve financial inclusion metrics in Morocco while offering a raft of upsides to both parties. The partnership will see Mastercard grow its market share in Morocco via the addition of Mastercard-branded cards across several verticals.
A glance at the statement indicates an expansive plan to integrate Mastercard offerings in local e-commerce and in-app payments for consumers. Mastercard will leverage VPS's local infrastructure and merchant relationships to deepen its footprint in Morocco.
On the flip side, VPS will reap the reward of brand credibility from its Mastercard partnership. The payment institution, licensed by Bank Al-Maghrib, is tipped to have access to Mastercard's cybersecurity and fraud detection tools.
Both parties confirm plans to roll out joint offerings for the local market with a blockchain-based tokenization product at the top of the pile. The collaboration will also launch support for digital wallets while aligning the local fintech scene with international best practices.
'This collaboration with Mastercard marks a significant milestone in our mission to digitally transform the payments landscape in Morocco,' said VPS President Ali Bettahi.
The biggest winner from the Mastercard-VPS partnership is the local payment scene in Morocco. With broader payment options spanning physical and digital tools, merchants and consumers can transact seamlessly.
Morocco has made significant strides in the quest for digitization, turning to emerging technologies to improve local payments. The country is warming up toward digital assets, inching toward new legislation to overturn its seven-year digital currency ban.
Africa embraces emerging technologies for payments
Africa's payment landscape is transforming, with leading economies shifting to emerging technologies. A Mastercard report predicts that digital payments in Africa will surge to $1.5 trillion by the end of the decade, but warns of a spike in fraudulent transactions. Conversely, African cross-border transactions powered by digital payment systems are expected to grow by a double-digit compound annual growth rate (CAGR) before 2030. At the core of the changes is a push to improve local financial inclusion metrics for non-banked and underbanked individuals.
Digital asset remittances in Latin America climb 40%
In other news, a new Chainalysis report has highlighted the growth of digital asset-based remittances to Latin America in a trend powered by various factors.
Digital currency-based remittances have spiked by over 40% in the last 12 months. The report, a collaborative effort between Chainalysis and the Australian Transaction Report and Analysis Center (AUSTRAC), mentions stablecoins as the main driving force.
Stablecoin adoption has grown by leaps and bounds in Latin America from a niche asset class to mainstream acceptance. The growth metrics around stablecoins in Latin America lie in their utility, providing a crucial lifeline for struggling economies in the region.
Latin American countries are turning to stablecoins to fight against inflation and currency devaluation, with Brazil and Argentina recording the largest figures. Apart from using stablecoins to hedge their wealth, residents in the region are drawn by the broad payment functionalities of the asset class.
At the top of the list is the speed of cross-border payments with stablecoins, sidestepping traditional challenges associated with remittances. Another reason behind the surge in stablecoin metrics is the warm embrace by the U.S. toward the asset class, with the White House vowing to back stablecoins to protect the sovereignty of the U.S. dollar.
Without steady access to physical dollars, investors are piling into stablecoins to solve their cross-border transaction challenges.
The rise of digital asset ATMs is another growth driver for cross-border remittances in Latin America. According to a report, Latin America has experienced a regional boom in digital asset ATMs, snagging a slice of the global market capitalization.
Less tech-savvy individuals are turning to digital asset ATMs to bypass third parties and their steep fees for cross-border transactions. Mexico, Panama, Colombia, and Argentina are recording the most significant growth for cross-border transactions via digital asset ATMs.
Latin America is poised to contribute to global digital payment metrics
Latin America is making its mark in digital payment metrics, rising from the lowest rung to becoming the fastest-growing region. Several government factors are backing their growth, with Brazil's Pix turning to automated payments to rake in an additional $30 billion in transaction volume.
Furthermore, Latin America focuses on regional and global partnerships to trigger a growth spurt for digital payments. Peru has inked a deal to introduce India's Unified Payment Interface (UPI) into its payments ecosystem.
Watch: Small casual payments transforms content creation business
title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
an hour ago
- Reuters
French fintech Qonto seeks banking license as it targets 2 million clients by 2030
July 3 (Reuters) - French fintech Qonto has applied for a banking license with France's banking regulator as it seeks to expand beyond payment services to offer lending, savings and investment products, it said on Thursday. The company, which provides digital banking and financial management tools for small and medium-sized businesses, said it serves more than 600,000 business customers across eight European markets including France, Germany, Italy and Spain. Qonto currently operates under a payment institution license, offering businesses financial services from invoicing and accounting to card payments and wire transfers. The neobank, launched in July 2017, aims to reach 2 million customers by 2030. It has raised more than 600 million euros ($705 million) in financing from venture capitalists and angel investors. Digital payments continue to gain ground in Europe, although at a slower pace than previously. A European Central Bank study, opens new tab published in December showed cards remained the dominant payment instrument by value, with a 45% share, while mobile apps were growing rapidly from 4% to 7% of payment values. Qonto has also bolstered its board with banking expertise, including former UniCredit CEO Jean-Pierre Mustier who serves as an independent member of Qonto's board. A banking license would enable the company to expand its partnerships and its pay-later service with complete independence, Qonto's CEO and co-founder Alexandre Prot said in a statement. ($1 = 0.8511 euros)
Auto Car
10 hours ago
- Auto Car
Synthetic fuels will coexist with EVs, says solar fuel maker
'So it doesn't make sense to produce fuels; you should instead use it directly,' he said. " T hat I fully agree with. However, the point is you don't need to produce the fuels locally.' By instead using a solar plant in Morocco or a wind plant in Chile, Furler suggested, you could make use of electricity that would not otherwise have made it to mainland Europe to clean up transport. Moreover, Furler claimed, such a plant could produce three times more electricity per year than its equivalent in Europe. That means you could cleanly fuel thousands of ICE cars in Europe using that electricity, rather than zero EVs – because that power cannot be transported, whereas the liquid petrol can be. Synhelion has already partnered airline Lufthansa and Switzerland's importer for the Volkswagen Group, AMAG, to deploy its fuels in the real world. AMAG was the first to use the company's fuel to power a car, demonstrating it in a short-wheelbase Audi Quattro. But there remains a long road ahead until they are ready for the mass market, said Furler: 'Around 2030 to 2035, the different pathways are likely at a competitive scale, and can then be deployed rather quickly.' He cited scaling up as the biggest challenge, because of the cost involved, and said it could take until 2050 until it's on a comparable scale to the fossil fuel industry. There is also an issue with cost: Synhelion's fuels are currently 'five to 10 times more expensive' than fossil fuels and 'probably we will not achieve full parity". The argument could become more compelling if fossil fuels are taxed on their carbon impact (bringing their costs up closer to synthetics fuels), said Furler, and a barrel price of around €1 (86p) per litre would make it 'a viable solution'.
BBC News
12 hours ago
- BBC News
'Major setback' for Morocco-Devon power cable link plan
The government has said it will not support a controversial plan to bring renewable energy to the UK from Morocco through subsea cables that would come ashore in Devon. Those behind the Xlinks project said they were "bitterly disappointed", adding the scheme had the potential to "provide 8% of the UK's electricity needs".Concerns had been raised over the potential disruption of the project on those living close to the proposed 14km (8.5 mile) onshore underground cable route."It's a major setback," said Johnny Gowdy, director at Regen, a not-for-profit organisation supporting the transition to a net-zero energy future. The government said it made the decision after "careful consideration". A Department for Energy Security and Net Zero (DESNZ) spokesperson said: "After careful consideration, we have decided not to support the Xlinks Morocco-UK power project."We are grateful to the project developers for their innovative proposal. We will continue to work with Morocco and are committed to strengthening our partnership."Xlinks had requested government support for the project, including a Contract for Difference (CfD), which would guarantee a set price per MWh of electricity. In a written ministerial statement on 26 June, Energy Minister Michael Shanks said the scheme was "not in the UK national interest at this time" and "does not clearly align strategically with the government's mission to build homegrown power here in the UK". The Xlinks Morocco-UK Power Project proposed using subsea cables to bring renewable wind and solar power from Morocco to the village of the proposals, four cables would be buried onshore over a period of up to two years.A new electricity substation would also be built next to an existing substation at Alverdiscott, along with two new converter stations, on a site of about 32 hectares (79 acres).If planning permission was granted, the construction work in Devon would take six project already has a 3.6GW connection agreement with National Grid and was designated as a project of National Significance by the previous Conservative government in said the scheme could provide enough electricity to power seven million homes. Local resident Adam Bridge said he was "overjoyed" at the news that the government had decided not to back the scheme. "We're still worried it might happen though", he added. "If it does go ahead, we'll be living right in the middle of a building site for years." Xlinks said any work would be phased over time and planned in a way to minimise impact to the local community as far as possible. Johnny Gowdy said it was a "major setback", adding: "It's very difficult to see how the project will progress without government support."The DESNZ has clearly said this doesn't align with its strategic plans for homegrown energy."That said, Xlinks are looking at what other options there may be." Sir Dave Lewis, chair of the the XLINKS Morocco-UK Power Project, said: "We are hugely surprised and bitterly disappointed that the UK government would choose to walk away from an opportunity to unlock the substantial value that a large-scale renewable energy project like this would bring."He added: "Ultimately, we have no choice but to accept DESNZ's decision. "We are now working to unlock the potential of the project and maximise its value for all parties in a different way."
