Government officials in Gujarat will partner with MasterCard to pursue a goal of being the first state in India to have a digital payments system.

MasterCard and Gujarat have signed an agreement to develop electronic payment processes for government, business, transportation and tourism in Gujarat.

The new system will improve transparency, efficiency and speed in payments, the card brand stated in a press release.

Gujarat has enjoyed a track record of development and financial inclusion in the past decade, MasterCard said. The digital payments effort will initially focus on the procurement process in various departments, municipalities and public sector undertakings. Development of mobile software for transferring government benefits to beneficiaries is also on the agenda.

"MasterCard will leverage its global expertise to deliver new innovations and the right payment systems, and we are looking forward to seeing fruitful results from this collaboration," Ari Sarker, division president, South Asia and country corporate officer for India at MasterCard, stated in the release.

MasterCard has implemented other projects within India in the state governments of Chhattisgarh, Madhya Pradesh and with the National Skill Development Corp.

MasterCard recently made investments in Gujarat in establishing the Mobile Solutions Center for Excellence in the city of Vadodara. The center utilizes technology from software provider C-Sam, which MasterCard acquired in 2014.

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