Philippines – Mastercard launched a charitable partnership with the technology firm Boost Capital aimed at providing access to digital financial services for over 10,000 small enterprises in the Philippines, notably those run by women. This new alliance, backed by the Mastercard Center for Inclusive Growth, will use technology to help Filipino small businesses gain access to money, knowledge, and resources.
The initiative expands on a previous collaboration between the two groups in Cambodia and shows how improved financial literacy and digital onboarding channels may reduce risks and improve lending to small firms. In order to empower financial service providers to improve access to digital financial services by improving merchant onboarding procedures and providing financial literacy training to their small business clientele, this program in the Philippines will draw lessons and experiences from Cambodia.
Small businesses are easily integrated using channels like Facebook Messenger, Telegram, and WhatsApp—channels that are already popular by Filipino entrepreneurs—by means of Boost Capital’s white-labelled technology platform. The company’s chat-based technology, enhanced with AI capabilities, allows service providers to digitally onboard a greater number of small business clients.
Once on board, small businesses can then access financial services anytime, anywhere, from their cell phones. Everything about the process is automated, from choosing the goods to contracting, disbursing, and using AI for verification.
Boost Capital will collaborate with Philippine financial service providers with funding from Mastercard Strive, a project managed by the Mastercard Center for Inclusive Growth. Their goal is to use technology to bring more women who own small businesses into the official financial system and provide them with specialised services to grow and support their businesses.
In addition to increasing access to financial services, the program will help small business owners strengthen their long-term financial security. This will be accomplished by integrating chat-based financial education into their financial services journey in a seamless manner. Prior research conducted in Cambodia demonstrated that small enterprises that received financial education had an 8 percent higher likelihood of making loan repayments on schedule.
More than a million micro, small, and medium-sized businesses (MSMEs) in the Philippines have benefited from Mastercard’s efforts. By 2025, Mastercard aims to bring 50 million small and micro companies and 1 billion individuals into the digital economy on a global scale. As part of this program, since 2020, the organisation has helped 27 million women entrepreneurs grow their businesses by providing solutions.
Speaking about the partnership, Shamina Singh, founder and president of the Mastercard Center for Inclusive Growth, said, “The results from our partnership in Cambodia clearly demonstrated the value that pairing credit with capacity building can have on unlocking capital for underserved small businesses. By building on that work, our aim is to empower more small businesses in the Philippines and facilitate their transition to the digital economy.”
Meanwhile, Lucinda Revell, co-founder of Boost Capital, expressed, “We are excited to be working with Mastercard Strive to unlock and expand credit for Filipino small businesses. This new grant will extend our technology to a wider set of partners and de-risk its adoption by smaller financial service providers, who might otherwise be hesitant to go digital. Encouraging them to explore new client onboarding channels will unlock access to a wealth of digital financial services to support small business growth.”
Lastly, Simon Calasanz, country manager for the Philippines, Mastercard, stated, “Micro and small businesses are vital engines of economic growth across the world, including in the Philippines. By fostering digital inclusion – one of the country’s strategic development priorities – this partnership with Boost Capital will provide much-needed support to Filipino small businesses and empower them to thrive. Further, by focusing on women-led enterprises, this partnership can help address the barriers faced by women entrepreneurs, enabling them to unlock their full potential.”
He added, “This latest collaboration deepens Mastercard’s commitment to the Philippines, driving social impact in a locally relevant way, while supporting the country’s efforts to digitizing and growing small businesses, and advancing inclusive growth.”
