Mastercard Incorporated (NYSE:MA) has entered into a strategic collaboration with Further Ventures to support the development of fintech infrastructure in the UAE and the broader MENA region. Further Ventures, a venture capital firm based in Abu Dhabi, specializes in nurturing innovative startups from ideation to exit.
This partnership aligns with Mastercard’s broader goal of promoting greater digitization in the MENA region. The company has been actively forming partnerships with financial institutions to drive this agenda. A recent example is the collaboration with I&M Bank Uganda, announced on December 13, 2023, which aims to enhance banking and payment experiences for customers, ultimately leading to increased payment volumes and revenues.
In collaboration with Further Ventures, Mastercard will contribute its advanced payment solutions, technologies, and platforms to support the fintech fund. The goal is to bring 50 micro, small, and medium enterprises (SMEs) globally into the digital economy by 2025. Additionally, Mastercard plans to make investments to contribute to the success of the fund. As fintech companies thrive on proper funding, Mastercard stands to benefit from increased digitization and improved market penetration as a payment processor.
Further Ventures is backed by ADQ and has $200 million in funds. The fund focuses on investing in ventures that are building advanced financial infrastructure, covering areas such as SME finance, virtual asset payment products, and blockchain-based solutions. The MENA region has seen significant growth in startup funding, with reports indicating that MENA startups raised $643 million in late-stage funding in the first half of 2023, surpassing global figures.
Mastercard’s collaboration with Further Ventures positions the company to capitalize on investment opportunities in the region and contribute to the ongoing digitization of economies. Despite the challenges and opportunities in the evolving fintech landscape, Mastercard’s shares have gained 20.4% year-to-date, outpacing the industry’s growth of 19.7%.
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