Mastercard is expanding its Accelerate financial technology (FinTech) portfolio and is adding 11 companies to its Start Path startup engagement program, according to a Wednesday (Aug. 12) announcement. The company said its efforts recognize “the important role FinTechs play in the world’s rapid digital transformation.”
Mastercard Accelerate works with FinTechs “through all stages of growth and transformation — market entry, expansion, product development, diversification and innovation,” the firm said.
“With the dramatic shift towards digital payments, the rise of open banking and the growth of blockchain and cryptocurrencies, there’s never been a more exciting time to be an innovator in FinTech,” said Ken Moore, executive vice president and head of Mastercard Labs. “Mastercard is thrilled to partner with some of the world’s most innovative startups to transform the future of commerce.”
Since 2014, Mastercard’s Start Path “has invited more than 230 later-stage startups worldwide to participate in its six-month virtual program, providing technical guidance, operational support and commercial engagements within the Mastercard ecosystem,” the company said.
“Startups in this growing network have gone on to raise $2.7 billion in post-program capital and collaborate with Mastercard, major banks, merchants and other high-profile organizations,” Mastercard said.
Another Mastercard Accelerate program, dubbed Engage, has “signed almost 50 new deals with partners” in the first quarter of 2020. The company said Engage “serves and promotes a network of more than 170 strategic partners who comply with Mastercard certification and rules to build and deploy new solutions on behalf of FinTechs, banks and merchants.”
Meanwhile, Mastercard has been working toward providing instant payments. Mastercard Executive Vice President of Digital Partnerships Sherri Haymond told PYMNTS the company has been looking at ways for customers “to connect to our products and services and use our rails to disperse money to people who really need it, and who need access to these funds in a fast and secure manner.” Speedy payouts are especially important to gig economy workers, she said.
Overall, startups’ collaborations with traditional financial institutions are bringing new services and products online — and companies, banks and customers are benefiting from their efforts.