This model will facilitate the entrance of new players into the financial system for the SME sector. MasterCard is looking to foster financial inclusion through this model and boost the economy of microfinance institutions in the country.

This new business model, developed by MasterCard, puts at the reach of regulated microfinancial entities the necessary technology and viable investment models to enable them as card issuers. Given their proximity to the segment, they will also become important channels for terminal installations.

This launch represents an important development for microfinance institutions because they will be able to integrate new financial services, such as the ones offered by the big players, at a viable cost which is not currently possible given the high expenses they have to incur. This demonstrates how the 8.1 million microfinance institutions[1] in Mexico could benefit from these new tools to help grow and accelerate their business.

"MasterCard reaffirms its commitment to offering innovative solutions for the MiPyme - SME segment; this business model is the first platform for microfinance institutions based on a flexible, low-cost, one-of-a-kind model, and change factor to foster financial inclusion in the country," said Antonio Junco, CEO of MasterCard in Mexico and Central America.

"Through this model, we enable microfinance institutions to offer better products and services which allow them to grow their market share in the financial system." added Jose Manuel Zacate, Head of Commercial Products for Mexico and Central America.

Te Creemos is the first institution to adopt this business model and is planning to provide new financial services to more than 250,000 customers in the next three years.

"Customers making up the microfinance segment have traditionally carried out their transactions in cash, basically because they did not have access to other payment tools. This joint venture with MasterCard presents itself as a a golden opportunity to modify this behavior, under affordable conditions." said Jorge Kleinberg, CEO of Te Creemos. "Limiting cash transactions will reduce the high operative costs these fund transfers represent."