Neem, a prominent embedded finance platform in Pakistan, has partnered with Mastercard, a global payments technology company, to enable and improve financial access for underserved communities in Pakistan.
This collaboration marks Mastercard’s inaugural foray into the embedded finance space in Pakistan – South Asian country of 240 million people.
What is embedded finance?
An embedded finance platform refers to a set of financial services that are integrated or embedded directly into the products, services, or platforms of non-financial businesses.
Embedded finance allows businesses to provide financial services such as payments, lending, insurance, and more, without having to build their own financial infrastructure. Examples of embedded finance might include an e-commerce vendor providing insurance, or a ride-sharing app that offers users the ability to pay for rides directly within the app, or an e-commerce platform providing instant financing options during the checkout process. These services are made possible through partnerships with financial technology companies or platforms that specialize in providing embedded financial solutions.
Neem and Mastercard collab
The partnership between Neem and Mastercard encompasses various dimensions of Neem’s operations, including the issuance of a diverse range of cards, from debit and virtual cards to co-branded offerings. The collaboration extends beyond traditional financial services, incorporating innovative initiatives such as remittances and loyalty reward programs.
Vladimira Briestenska, cofounder at Neem, said the partnership with Mastercard “marks a significant milestone for Neem and the embedded finance movement in Pakistan. It will advance us further on our mission to enable financial wellness for underserved people and businesses.”
The collaboration will also support Neem’s mission to promote financial wellness among underserved populations and businesses. “As pioneers in the country, we are introducing eco-friendly debit cards, underscoring our commitment to sustainability and inspiring the wider industry towards more environmentally conscious finance solutions,” she said.
Financial wellness shift in Pakistan
Both Neem and Mastercard believe that embedded finance has the potential to catalyze a financial wellness shift in Pakistan, akin to successful implementations in Africa, Asia, and the Pacific.
J.K. Khalil, Cluster General Manager, MENA East at Mastercard, said: “Embedded finance is a fundamental tool for the future, enabling companies to deliver and consume services at an unprecedented scale. Our partnership with Neem will play a crucial role in fueling Pakistan’s digital economy and driving financial inclusion.”
Arslan Khan, Vice President and Country Business Manager, Pakistan at Mastercard, echoed the sentiment, stating, “We are delighted to collaborate with Neem to fuel Pakistan’s digital economy through the power of embedded finance. Our partnership will help expand our reach to the underserved segments in our markets and drive financial inclusion in line with our commitment to bring 1 billion people across the globe into the digital economy.”
“We are delighted to collaborate with Neem to power Pakistan’s digital economy through the transformative potential of embedded finance. This partnership aligns with our commitment to bring 1 billion people worldwide into the digital economy and will extend our reach to underserved segments in our markets.”
Founded in 2019, Neem is dedicated to enabling digital businesses in Pakistan to offer a comprehensive suite of financial services to their customers. The platform offers a range of embedded financial services, including full payments infrastructure, embedded lending, and insurance, across diverse industries such as mobility, agriculture, gaming, and e-commerce.
“In Pakistan, the level of financial wellness is notably low, with less than 30% of its 230 million population having access to any form of financial services. This is where the embedded finance model can help address the finance wellness gap,” said Fawwad Raza, Head of banking operations at Neem.
This strategic partnership aims to position Pakistan on the global map of embedded finance by adopting globally proven models tailored to local use cases. In a largely untapped market, initiatives such as this one have the potential to create a substantial impact and redefine financial accessibility for millions of Pakistanis.
