(Bloomberg) -- Mastercard Inc. is boosting perks for customers who shop at Los Angeles minority-owned businesses during the holiday shopping season as financial companies face pressure to address America’s racial wealth gap.
Cardholders will get a 20% statement credit for purchases made at 850 minority-owned companies, the Purchase, New York-based company said in a statement. Participating retailers include Logan’s Gardens, which sells rare and heirloom edible plants, and skincare company Los Angeles Oils and Butters.
Companies across the U.S. have pledged to fight systemic racism in the wake of the killings of George Floyd and other Black Americans. The finance industry in particular has been called out for not providing adequate services to under-served communities.
“We decided that we didn’t want to just write checks to national organizations, we wanted to figure out how to bring -- in an authentic and genuine way -- all the assets of the company to the issue,” said Michael Froman, a vice-president at Mastercard, in an interview.
Mastercard’s offer runs Nov. 26 to Dec. 25 and is for consumer and small business credit cardholders. The company plans to invest $500 million over five years to support Black communities, focusing on L.A., New York, St. Louis and four other cities.
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