Shibbir Ahmed, NEW YORK: Mastercard and the International Finance Corporation (IFC), a member of the World Bank Group, have launched a $500 million global risk facility aimed at expanding digital financial access in emerging markets.

Announced on September 9, the initiative is designed to help banks, fintech companies and other financial institutions in emerging markets participate more easily in international payment networks. The program will initially focus on emerging markets in Europe and Latin America.

The initiative seeks to reduce financial and risk-related barriers that can prevent local financial institutions from expanding digital payment services. By helping institutions manage international payment-related exposure, the facility is expected to support broader access to secure and modern financial services.

According to the World Bank Group, many banks and fintech companies in emerging markets face difficulties meeting the financial requirements needed to participate in global payment systems. These barriers can leave millions of consumers and small businesses dependent on cash and excluded from the digital economy. The initiative aims to help address that gap by expanding access to digital payments for consumers and businesses, including small enterprises and underserved communities.

According to IFC, the program could support a significant expansion of digital payment activity through participating financial institutions. The initiative is expected to potentially enable around $280 billion in additional digital payment volume, facilitate the issuance of approximately 360 million new cards and bring about 90 million new active users into digital payment systems.

Women are expected to account for a significant share of the new users, with approximately 39 million women potentially gaining access through the initiative. IFC Managing Director Makhtar Diop said expanding digital payments in emerging markets can help create economic opportunities and bring more people and businesses into the formal financial system.

Mastercard said the initiative is intended not only to increase access to financial services but also to strengthen security, trust and resilience across digital payment ecosystems. The program reflects growing efforts to expand financial inclusion in emerging markets, where digital payments are increasing but access to international payment infrastructure remains uneven. By reducing barriers for local financial institutions, Mastercard and IFC aim to help more consumers and businesses participate in the formal digital economy.

Shibbir Ahmed, WASHINGTON DC  — Artificial intelligence could give developing countries a rare opportunity to accelerate economic growth, improve public services and address long-standing development challenges, according to the World Bank’s World Development Report 2026: The Promise of Artificial Intelligence.

The report examines the potential impact of artificial intelligence on 5.6 billion people living in low- and middle-income countries and argues that developing economies do not need to build the world’s most advanced AI systems to benefit from the technology. Instead, the World Bank recommends that countries follow a three-part approach: adopt, adapt and advance.

The report says developing countries can begin by adopting existing AI tools in areas such as health care, agriculture, education and government services. They can then adapt those technologies to local languages, institutions, data and development needs.

AI-powered tools are already helping farmers improve weather-related decisions, supporting medical screening and assisting teachers in preparing educational materials, according to the World Bank.

The institution warns, however, that the benefits of AI will not be automatic. Reliable infrastructure, digital connectivity, education, skills, strong institutions and access to relevant data will be essential if developing economies are to translate AI adoption into higher productivity and broader prosperity.

The report also highlights the risk of a widening global AI divide. A small number of countries and companies currently dominate advanced AI models, semiconductor production and data-center infrastructure, potentially creating new forms of technological dependence.

For most developing economies, the World Bank says building frontier AI models from scratch is unlikely to be a realistic near-term strategy because of the enormous costs involved in computing infrastructure, data and specialized talent.

Instead, countries should focus on practical applications that expand access to expertise and improve productivity while building the infrastructure and skills needed for deeper participation in the AI economy.

The World Bank describes the rapid spread of AI as a historic opportunity for developing economies, noting that AI is spreading faster than earlier general-purpose technologies such as electricity and the internet.

The report argues that strategic adoption and adaptation could allow developing countries to capture significant economic and social gains without having to compete directly with the world’s largest technology companies in developing frontier AI systems.