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Microfinance

Making microfinance more secure and efficient.

Anyone with a cell phone can conveniently receive and repay a microfinance loan. User-friendly voice-based services replace paperwork to make microfinance services more accessible and efficient. TagPay offers both remote and proximity microfinance transactions. The beneficiary may cash-out their loan or use the money to make purchases directly using their phone. All existing cell phones can be used without prior enrollment or special apps.

Cecilia gets microloans for her jewelry business sent straight to her phone. She withdraws some of the funds and spends some of it directly to buy her supplies. When she repays the loans she signs for the transaction using her mobile and has access to her loan status and history at any time.

Microfinance: How it Works

Loan Distribution

There are two possible ways for loans to be disbursed:

Remotely: The MFI uses a web interface to send loans to beneficiaries’ cell phones or calls an Interactive Voice Response server and follows verbal instructions to disburse a loan.
Proximity disbursement: An agent equipped with a cell phone or computer performs a secure NSDT™ transaction with the beneficiary’s mobile.

In both cases, the beneficiary is guided by verbal instructions in their local dialect and the transaction is confirmed by SMS or printed receipt.

Loan Use

The beneficiary may go to a local MFI branch or affiliated merchant and withdraw the loan partially or completely using his or her mobile phone to sign for the withdrawal. The beneficiary may also leave the loan on their TagPay account and use their cell phone to buy materials for their entrepreneurial activities.

The beneficiary ultimately has more control over how the loan is used and can reduce security risks by withdrawing cash in smaller increments or keeping the money on the phone to spend in stores directly.

Loan Repayment

Reimbursement of the loan can be done remotely or through a proximity transaction.

The beneficiary deposits funds on their TagPay account through a bank branch or affiliated merchant
The beneficiary either reimburses the loan via IVR or pays the MFI agent directly using their cell phone to sign the transaction

NSDT™ is used to authenticate the beneficiary via their mobile when they receive and repay loans.

Microfinance: Benefits

Loans can be disbursed and repaid using any mobile phone in the world.
Extremely Secure—the phone must be present to receive, use, and repay loans. Cash transport risks are eliminated.
Full traceability and transparency—all transactions are tracked online to help manage beneficiaries and field agents.
Beneficiary relationship management—real-time loan status information and ability to communicate reminders to beneficiaries.
Improved efficiency—time saved on paperwork and logistics.
User-friendly—voice-guided services for receiving and repaying loans conveniently.

Microfinance: Alternative Use Case

TagPay can also be used as a “mobile signature” for microfinance operations.

In this scenario, cash loans are still used and the beneficiary’s cell phone is used to sign for loans that they have received and repaid.

This solution resolves fraud, traceability, literacy, and many other barriers faced by MFIs.