UBA, Mastercard Roll Out Prepaid Card To Boost Financial Inclusion In Nigeria

United Bank for Africa (UBA) Plc, in collaboration with global financial services company Mastercard, has launched a new prepaid card designed to give millions of people without traditional bank accounts access to secure digital payments.

The card, unveiled at UBA’s headquarters in Lagos on Monday, is targeted at segments of the population that remain underserved by the formal financial system—particularly young adults, freelancers, gig workers, and low-income earners.

Unlike conventional debit or credit cards, the prepaid card does not require holders to maintain a bank account.

Debit cards are tied directly to an account balance, while credit cards allow users to borrow up to a limit and repay later. The prepaid card, by contrast, works on a “load and spend” basis: customers top it up with cash in advance and spend only what is available.

The card supports both local and international transactions, allowing customers to track and manage their spending.

UBA states that the product is designed to serve not only as a payment tool but also as a budgeting instrument. Families can use it as a reloadable allowance card, while freelancers and gig workers can rely on it to manage irregular income streams.

The card is globally accepted and operates on Mastercard’s network, which the bank says guarantees secure and seamless digital transactions for users.

The launch comes against the backdrop of persistent financial exclusion in Nigeria and across Africa. According to data cited by the bank, an estimated 28.9 million Nigerian adults remain unbanked, meaning they have no access to formal financial services. Similar challenges are reported across other African markets.

Shamsideen Fashola, UBA’s Group Head of Retail & Digital Banking, said the initiative reflects the bank’s strategy of creating products tailored to real-life needs.

“This collaboration with Mastercard is yet another demonstration of our customer-first approach,” Fashola said. “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.”

Mastercard, which operates in more than 200 countries and territories, emphasized that the partnership with UBA is part of its mission to broaden financial access.

“At Mastercard, we are relentlessly committed to advancing financial inclusion through innovative and secure digital payment solutions,” said Dr. Folasade Femi-Lawal, Country Manager for West Africa. “Collaborating with UBA enables us to connect individuals across all income levels, demographics, and social strata. Together, we are empowering Nigerians with the tools they need to confidently participate in the global economy.

Both organizations state that the prepaid card is part of a long-term vision for financial inclusion, aimed at enabling underserved communities to move away from cash dependency and participate more fully in the economy.

Analysts note that prepaid and mobile-based banking products are increasingly important in Africa, where high mobile penetration contrasts sharply with low banking access. By providing entry points into the digital economy, banks and payment firms are hoping to narrow the gap.