Onome Amuge
United Bank for Africa (UBA) has teamed up with Mastercard to launch a new prepaid card designed to widen access to digital payments across Africa, targeting millions of people who remain outside the formal banking system.
The product, unveiled at UBA’s Lagos headquarters recently, allows consumers to make both domestic and international transactions without the need to open a traditional bank account. The card is reloadable, can be used for budgeting and expense management, and is supported by Mastercard’s global payments infrastructure.
Despite years of reforms and rising mobile phone penetration, Nigeria still has one of the world’s largest unbanked populations. According to the World Bank’s Global Findex database, more than 28.9 million Nigerian adults remain excluded from the financial system. The problem is especially more notable among young people, gig economy workers and low-income households who struggle to access mainstream banking products.
Shamsideen Fashola, group head of retail and digital banking at UBA, said the new prepaid card was a deliberate attempt to tackle this gap. “This collaboration with Mastercard is yet another demonstration of our customer-first approach. We are committed to providing practical solutions that meet the everyday needs of Nigerians, and this card will make payments simpler, safer, and accessible to all,” he said.
Mastercard also described the launch as part of a wider strategy to grow its footprint in Africa, where digital payments adoption is expanding rapidly but remains uneven. “At Mastercard, we are relentlessly committed to advancing financial inclusion through innovative and secure digital payment solutions that serve both banked and unbanked Nigerians,” said Folasade Femi-Lawal, the company’s Country Manager for West Africa. “Together, we are empowering Nigerians with the tools they need to confidently participate in the global economy and shape a more inclusive digital future,” she added.
Beyond cash, toward digital ecosystems
Cash still dominates transactions in Nigeria and many other African markets, but regulators, banks and fintech companies are betting on digital solutions to improve transparency, reduce costs, and expand financial services to underserved populations.
The Central Bank of Nigeria has been pushing its cashless policy for years, with mixed results. Initiatives such as mobile money, agency banking, and the launch of the eNaira have sought to accelerate digital adoption. However, challenges around infrastructure, trust, and affordability persist.
Prepaid cards such as UBA offer a middle ground. For consumers wary of traditional banking, they provide a simple entry point into the formal financial system while enabling cross-border commerce, online purchases, and remittances. For gig workers, freelancers and students, the cards also serve as a flexible budgeting tool, separating earnings from day-to-day spending.
Across Africa, the financial inclusion agenda is central to significant economic growth strategies. The World Bank estimates that raising financial inclusion can increase GDP by up to 2 per cent annually in developing economies, by enhancing savings, credit access and entrepreneurship.
UBA, which operates in 20 African countries as well as the UK, US, France and the UAE, is positioning itself as a leading player in this transformation. Its pan-African presence gives it a unique ability to scale products such as the prepaid card across borders.
Meanwhile, Mastercard has been deepening partnerships across Africa, working with banks, mobile network operators and fintechs. It recently expanded its QR and contactless payment initiatives in Kenya, South Africa and Egypt, and is competing with rivals Visa and China’s UnionPay in a battle for market share on the continent.
Both UBA and Mastercard emphasised the sustainability aspect of the partnership, arguing that financial inclusion is not just about access, but also about resilience and long-term empowerment. The card is expected to facilitate smoother participation in the formal economy, from paying school fees and utility bills to enabling online commerce for small businesses.
The partnership also comes at a time when African economies are under pressure to diversify revenue sources, manage currency volatility, and strengthen financial stability.
UBA, which serves more than 45 million customers globally, disclosed that it has staked much of its growth on digital innovation. For Mastercard, the collaboration offers another step in its ambition to position itself as a partner for African governments and businesses undergoing digital transition.
