Mastercard latest collaboration aims to enable businesses to leverage digital tools more easily, promoting financial inclusion by using affordable mobile devices powered by KaiOS.

Microsoft has partnered with KaiOS, a mobile software provider, to simplify digital payment acceptance for millions of small and medium enterprises (SMEs) in emerging markets, starting with Cote d’Ivoire and Nigeria.

The initiative will help SMEs in regions with limited access to advanced smartphones or digital infrastructure by allowing them to accept digital payments and access financial services, boosting economic growth and business opportunities.

KaiOS differs from other popular mobile operating systems by bringing the best of the internet to affordable devices with low memory capacity. KaiOS is even able to run on feature phones or wireless home phones with low power consumption.

The operating system works with all major carriers, mobile network operators, and mobile phone manufacturers in emerging regions. KaiOS also plans to expand its partner network to include acquiring banks, payment facilitators, fintechs and more.

Due to a partnership with Mastercard, the company will be able to integrate a range of digital payment solutions into its marketplace of HTML5-based apps. One of the first offered payment alternatives is Mastercard QR Pay by Link, with?Tap & Go contactless payment technology.

Small and medium-sized enterprises (SMEs), particularly in developing regions, continue to face difficulties in adopting digital payment solutions. High costs associated with traditional payment terminals and complex technical requirements hinder their ability to embrace these systems. As a result, SMEs struggle to fully participate in the digital economy, which in turn limits their potential for inclusive and sustainable growth.

KaiOS devices, in turn, are low-cost and, thus, affordable even for the smallest businesses in the region. Business owners who have KaiOS-powered phones can enrol by entering their registered credentials and authenticating via a one-time password. Registered SMEs can immediately access and use a variety of digital payment options available through the partnership.

“Acceptance fuels a successful digital economy, so it’s critical that we meet people where they are today and move them forward together. Whether it’s a micro-merchant in Cote d’Ivoire to an enterprise in Indonesia, our goal is to make it as easy for merchants to accept digital payments as it is for consumers to make them. We’re looking forward to working closely with KaiOS to bring the best of our technology, scale, and expertise together to drive growth for emerging markets around the world.”

Jorn Lambert, chief product officer at Mastercard

Mastercard and KaiOS will collaborate with local partners in emerging African economies like Touch and Pay Technologies (TAP) and Wizzit to extend access to in-market merchants. “We are confident that this collaboration will set new benchmarks for efficiency and drive greater financial inclusion,” said Dirk Bruynse, chief operating officer of Wizzit.

Earlier this year, Mastercard and the African Development Bank Group allied to provide access to critical services to 100 million people and businesses in Africa.