Mastercard and IFC, a World Bank Group member, have renewed their partnership on a $250m global risk-sharing facility to drive access to electronic payments in emerging markets.

Originally, the firms formed an alliance in 2015 and their updated agreement is set to allow financial institutions in developing countries to better participate in the Mastercard network.

The participation will be facilitated through a programme under which IFC intends to guarantee up to 100% settlement risk.

Mastercard said the latest agreement will aid in expansion of the programme to more participating banks and financial institutions.

Mastercard vice-chairman and president of strategic growth Michael Froman said: “It’s partnerships like this, combined with technology and know-how, that are truly driving greater inclusion in emerging markets.

“The programmes the facility is developing around the world are vital to bringing people and communities into the financial system and on a path to prosperity.”

The company plans to work towards the identification, development and implementation of programmes with participating financial institutions, thus improving access to electronic payments.

IFC chief operating officer Stephanie von Friedeburg said: “This partnership will help bring modern financial services to underserved people around the world.

“It allows us to pool our capabilities in risk management and financial technologies, and to leverage our global network of financial institutions to deliver financial inclusion.”