VPS, Mastercard team up to advance digital payments in Morocco

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Vantage Payment Systems (VPS), a Morocco-based payment services company, has entered into a collaboration with Mastercard (NASDAQ: MA) to enhance the state of digital payments in the North African country.

According to a report, the collaboration will seek to improve financial inclusion metrics in Morocco while offering a raft of upsides to both parties. The partnership will see Mastercard grow its market share in Morocco via the addition of Mastercard-branded cards across several verticals.

A glance at the statement indicates an expansive plan to integrate Mastercard offerings in local e-commerce and in-app payments for consumers. Mastercard will leverage VPS’s local infrastructure and merchant relationships to deepen its footprint in Morocco.

On the flip side, VPS will reap the reward of brand credibility from its Mastercard partnership. The payment institution, licensed by Bank Al-Maghrib, is tipped to have access to Mastercard’s cybersecurity and fraud detection tools.

Both parties confirm plans to roll out joint offerings for the local market with a blockchain-based tokenization product at the top of the pile. The collaboration will also launch support for digital wallets while aligning the local fintech scene with international best practices.

“This collaboration with Mastercard marks a significant milestone in our mission to digitally transform the payments landscape in Morocco,” said VPS President Ali Bettahi.

The biggest winner from the Mastercard-VPS partnership is the local payment scene in Morocco. With broader payment options spanning physical and digital tools, merchants and consumers can transact seamlessly.

Morocco has made significant strides in the quest for digitization, turning to emerging technologies to improve local payments. The country is warming up toward digital assets, inching toward new legislation to overturn its seven-year digital currency ban.

Africa embraces emerging technologies for payments

Digital asset remittances in Latin America climb 40%

In other news, a new Chainalysis report has highlighted the growth of digital asset-based remittances to Latin America in a trend powered by various factors.

Digital currency-based remittances have spiked by over 40% in the last 12 months. The report, a collaborative effort between Chainalysis and the Australian Transaction Report and Analysis Center (AUSTRAC), mentions stablecoins as the main driving force.

Stablecoin adoption has grown by leaps and bounds in Latin America from a niche asset class to mainstream acceptance. The growth metrics around stablecoins in Latin America lie in their utility, providing a crucial lifeline for struggling economies in the region.

Latin American countries are turning to stablecoins to fight against inflation and currency devaluation, with Brazil and Argentina recording the largest figures. Apart from using stablecoins to hedge their wealth, residents in the region are drawn by the broad payment functionalities of the asset class.

At the top of the list is the speed of cross-border payments with stablecoins, sidestepping traditional challenges associated with remittances. Another reason behind the surge in stablecoin metrics is the warm embrace by the U.S. toward the asset class, with the White House vowing to back stablecoins to protect the sovereignty of the U.S. dollar.

Without steady access to physical dollars, investors are piling into stablecoins to solve their cross-border transaction challenges.

The rise of digital asset ATMs is another growth driver for cross-border remittances in Latin America. According to a report, Latin America has experienced a regional boom in digital asset ATMs, snagging a slice of the global market capitalization.

Less tech-savvy individuals are turning to digital asset ATMs to bypass third parties and their steep fees for cross-border transactions. Mexico, Panama, Colombia, and Argentina are recording the most significant growth for cross-border transactions via digital asset ATMs.

Latin America is poised to contribute to global digital payment metrics

Latin America is making its mark in digital payment metrics, rising from the lowest rung to becoming the fastest-growing region. Several government factors are backing their growth, with Brazil’s Pix turning to automated payments to rake in an additional $30 billion in transaction volume.

Furthermore, Latin America focuses on regional and global partnerships to trigger a growth spurt for digital payments. Peru has inked a deal to introduce India’s Unified Payment Interface (UPI) into its payments ecosystem.

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