MasterCard Says eID Card Use Will Drive Financial Inclusion

MasterCard Worldwide, multinational financial services corporation has advocated the use of electronic identity card (eID) to drive financial inclusion in Nigeria.

This is coming on the heels of a report by the firm which identified active government involvement through partnerships with the private sector and innovation as key to financial inclusion growth.

In an email response to Nigeria CommunicationsWeek's questions on how the Nigeria-National Identity Management Commission (NIMC) project will help financial inclusion, Omokehinde Ojomuyide, vice president and Area Business Head, West Africa said that "Combining an identity card with MasterCard’s prepaid payment capability creates a game changer as it breaks down two of the most significant barriers to financial inclusion - proof of identity and access to financial services.

She said that "Through the eID Card, they will gain access to formal financial services and receive an identity card that is universally accepted, enabling them to live more self- determined lives.
 
She added that the program will also help the Central Bank of Nigeria to achieve its goal of reducing the financial exclusion rate to 20% by 2020.

"The government will see increased transparency, cost savings, greater efficiencies, a reduction in fraud, reduced cost of doing business, enhanced security and socio-economic growth, as cash payments are digitized," she said.
 
Ojomuyide added that "The National eID Card will make life easier for Nigerians by providing them with a convenient means of proving their identity in Nigeria and beyond, while giving them access to state-of-the-art financial services, she said.

The Card also eliminates the need to carry large amounts of cash, giving them greater peace of mind.

For example, SMEs will be able to apply for a loan to grow their businesses, in turn providing employment to others.

Farmers can receive their grants and subsidies using the eID Card.‎

The MasterCard progressive report also disclosed that usage needs to be proactively pursued.

The gap between adoption and usage is emphasized by the fact that the share of consumer transactions for payments outflows that are non-cash is significantly less than the share of adults who have a payments product (all countries lie below the equilibrium line, the line on which share of non-cash transactions is the same as share of adults who own a payments product.