Mastercard has released a white paper revealing that giving people the ability to pay only for what they use, as they need it, can lift millions of people across Africa out of poverty and make prosperity possible.

The paper, titled “Pay-on-Demand: The Digital Path to Financial Inclusion,” explores how digital inclusion has been proven to provide better access to financial and other services. This ultimately drives financial inclusion, which leads to improved economic possibilities for individuals and businesses.

Mastercard’s report, based on research from in-depth face-to-face interviews with consumers across Nigeria, Kenya and Uganda, shows that a focused deployment of solutions like pay-on-demand is key to increasing connectivity. However, for these solutions to function effectively, it is critical that all stakeholders — governments, mobile network operators (MNOs), financial service companies and regulators — come together to unlock opportunities to enable greater financial inclusion.

Jorn Lambert, executive vice president, digital solutions, Mastercard, said: “The growth of digital technology has presented people in Africa with access to innovative, affordable solutions that help them meet their basic needs, ultimately leading to greater access to capital that can scale businesses and increase prosperity. The pay-on-demand model is an incredible example of this, which has already empowered millions of people by making solar energy more accessible and affordable.

“But now, with the expansion of pay-on-demand to any connected device like smartphones, water filters or white goods, we have a real opportunity to positively impact the lives of a billion people, in the same way the telecom industry did two decades ago. To further scale the model effectively and create a digital economy that works for everyone, key players in the ecosystem must collaborate to drive a new wave of inclusion through connectivity and smart devices.”