Mastercard commemorates first anniversary of historic agreement with Panama

Posted on 2022-04-28

In order to innovate the way in which payments and collections are made in Panama, Mastercard and the National Government marked the beginning of a new chapter with the aim of collaborating and promoting the digitization of payments, financial inclusion and economic development. to improve the quality of life of all citizens.

After establishing cooperation channels aimed at the digital transformation of the country and the promotion of economic reactivation, today marks the first year of the signing of the Memorandum of Understanding, a five-year agreement that seeks to strengthen the cooperation ties between Mastercard and the Government of Panama.

Mastercard chose Panama as the first country to launch its Digital Country Partnership program in the Latin American and Caribbean region, highlighting that the canal country is a regional reference and also has a dynamic economy and great potential to develop infrastructure digital for the benefit of Panamanians.

“One year after the signing of this historic agreement with the Government of Panama, we are very pleased with the path traveled and we are very excited about the plans for the next 4 years, in which we seek to support the Government's agenda in digitization of banking and payments, working with the different state entities and even private companies to ensure that financial inclusion is a reality in Panama”, said Germán Rosón, country manager of Mastercard for Panama.

According to research, in Panama 70% of commercial transactions are still made in cash; More than 50% of Panamanians do not have a bank account and 70% do not have a physical or digital means of payment, this represents a great opportunity for growth and at the same time a challenge to achieve greater financial inclusion.

During this first year, Mastercard has worked as an ally of the Government Innovation Authority (AIG) to implement the Digital Government Agenda of Panama, which has allowed great progress to be made:

• Multinational Company Headquarters License (SEM): to reiterate our commitment to investment in the country, as a first action after signing the MOU, we acquired the SEM company license with the aim of accelerating the process of digital transformation in Panama through through the duplication of our employees who will help us strengthen our support with the government in its digital agenda for the benefit of all citizens.
• Digitalization of the transportation system: an agreement was established with the National Highway Company (ENA), which allows users to make automatic top-ups and payments through the Panapass application using Mastercard cards, thus improving the mobility experience in the Northern corridors , South and East. In addition, Mastercard continues to work on the digitization of payment systems in public transport such as the Panama Metro and the Metro Bus.
• Efficiency in paying taxes: Mastercard signed an agreement with the General Directorate of Revenue (DGI), which allows taxpayers to have digital payment options available for their tax obligations. This initiative has been accompanied by a mass communication campaign to promote digital payments with Mastercard cards. From its implementation to today, digital transactions have increased by 72% in contactless card payments, which are backed by the authenticated security of Mastercard's IdentityCheck technology.
• Closing the gender equality gap: Additionally, Mastercard is supporting the Government in its gender equity and equality agenda through its Girls4Tech program, a program to inspire girls to develop STEM skills, encouraging them to become future leaders. of the sector.

Recognizing the potential of the country, Mastercard is committed to being part of Panama's growth, providing its knowledge and extensive experience as an innovative leader in payments, digital infrastructure, security and solutions against cyberfraud.

Similarly, it ratifies its commitment to seek alliances with other state institutions, financial entities, businesses and Fintechs to collaborate and create new strategies that ensure digital inclusion for all Panamanians. To achieve this, Mastercard seeks to develop a financial ecosystem that does not use cash and stimulates transactions, in order to increase tax collection and thus provide greater availability of resources to the state for social investment and economic reactivation.

Source: www.newsinamerica.com