NEW DELHI, Oct 30: Fintech options supplier NextGen has tied up with the affiliation of microfinance establishments Sa-Dhan to promote digital payments by feature-phone customers within the microfinance house.
The partnership intends to assist hundreds of thousands of feature-phone customers to make digital payments below the microfinance ecosystem, a joint assertion stated on Sunday.
Micro finance establishments have their presence in over 600 districts in India and there’s a desire to herald technology-based options to cut back the operational prices for these establishments and allow simple finance availability in tier two and tier three cities/rural areas of India, it stated.
“In order to enable this solution, we must target the whole gamut of feature-phone users … there is an immediate need for a cohesive digital EMI collection solution to reduce their overall operational costs through the non-smart/feature phone segment,” stated Taron Mohan, founder, NextGen.
NextGen plans to convey technical options like setting up an UPI Auto pay platform for normal EMIs as an auto pay perform, driving on the UPI 123Pay service platform with NPCI, he stated.
With the partnership, come many further advantages for the beneficiaries of the MFI ecosystem, together with UPI, banking and wallets, invoice payments system, particular person and service provider cash transfers and an interface enabling elevating requests of micro loans and insurance coverage.
“Digitisation in collections in the microfinance sector has been a great challenge as most of the MFI clients do not possess smart phones. The association with NextGen will help in developing a new payment and collection system by using feature phones with the technological intervention being provided by them,” Sa-Dhan CEO Jiji Mammen stated.
There are about 45 million particular person beneficiaries below the MFI organisations and most of them are on function telephones. Sa-Dhan is an RBI acknowledged Self-Regulatory Organization for Microfinance Institutions with about 150 members.
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