Mastercard partners mTek to embed insurance in East Africa payments

This sees tailored insurance products integrated directly into Mastercard’s consumer and SME card offerings, enabling individuals and businesses to access affordable coverage through existing payment platforms.

The initiative targets the region’s low insurance penetration, which the companies say remains below 3 percent due to high upfront costs, complex applications, and limited distribution. By embedding insurance into everyday transactions, the firms aim to expand access.

“By bringing insurance directly into the payment experience, we are removing friction and making protective cover accessible to millions of people and businesses,” said Shehryar Ali, Senior Vice President and Country Manager for East Africa and Indian Ocean Islands at Mastercard.

SMEs account for more than 90 percent of businesses in East Africa, and the companies say overage at the point of transaction eases access for small firms that often face barriers in securing affordable insurance.

Bente Krogmann, CEO of mTek, said the collaboration would allow the company to scale its technology and connect with millions of users through trusted payment channels.

“Together, we aim to deliver solutions that are simple, affordable, and life-changing for underserved communities,” she said.

Per a joint statement by the two companies, the model will involve financial institutions, insurers, and telecommunications companies, bundling payments with insurance to expand reach.

mTek will provide API integration with underwriters, platform support, and co-develop products with insurers to build commercially viable and scalable models, it said.