Mastercard and Obopay collaborate to launch a unique prepaid card to power financial inclusion in rural communities

Mastercard and Obopay announced their collaboration to launch a financial inclusion card for smallholder farmers and rural communities. Powered by Mastercard’s Community Pass digital infrastructure, the prepaid card will allow farmers to receive the sale proceeds for their crop digitally, spend their earnings to make purchases even in remote locations that have poor or no connectivity, and build a transaction history based on their income and expenditure to access customized credit options.

The prepaid card will work in tandem with the existing Mastercard Farm Pass platform wherein the farmers will be able to receive payments into their prepaid card account, thereby allowing them to use it to transact at local outlets. Farm Pass is part of Mastercard’s broader Community Pass infrastructure.

While 80% of the rural population has bank accounts, the rural economy still runs on cash due to challenges around digital acceptance, connectivity, and branch banking experience. Prepaid cards have so far seen limited traction in rural areas owing to lack of inflows into the accounts. Digitizing the agriculture value chain can ensure that farmers can use their money to transact at merchant outlets in rural areas. The card solution developed by Mastercard and Obopay is unique as it has the ability to also work offline in remote areas, ensuring rural acceptance of digital payments for buying farm inputs, agriculture equipment, or other essentials.

Obopay will link the online Prepaid cards with offline digital wallets at the backend to ensure a seamless experience for users. This will result in digitization of farmer spend, while leveraging the existing acceptance points of sale in villages and semi-urban areas. By building a digital record of farmers spend and income, the solution will also facilitate customized credit. The card will target smallholder farmers, Self Help Group members, small buyers, traders, along with the adjacent rural ecosystem.