October 21, 2020

Mastercard pledges $500M to help close racial wealth gap (NYSE:MA)

Mastercard (NYSE:MA) pledges to invest $500M in Black communities over the next five years.

The commitment includes products, services, technology, and financial support, as well as concentrated investments that will provide Black-owned businesses and Black people access to affordable financial tools and capital.

In collaboration with city leaders, Mastercard is initiating efforts in seven cities, including Atlanta, Birmingham, Dayton, Los Angeles, New Orleans, New York City, and St. Louis. Mastercard will use its range of assets, including partnerships, technology, and data insights, to ensure quick and effective distribution of essential financial support and access to city programs.

Another arm of the initiative works to broaden access of affordable financial tools and services to Black families, with a collection of digital services being offered through African American-owned fintech MoCaFi.

The company will also work to provide capital and resources for Black-owned businesses by expanding its relationships with Community Development Financial Institutions.

“We are starting in cities across the country with on-the-ground efforts meant to drive out inequities and create the opportunities, connections and resources that will spark economic growth for the long term,” said Mastercard CEO Ajay Banga.

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