NextGen collaborates with Sa-Dhan to advance digital payments
- ByStartupStory | October 31, 2022
In order to encourage feature-phone customers of microfinance to embrace digital payments, NextGen, a developer of fintech solutions, has partnered with Sa-Dhan, an association of microfinance institutions. According to a joint statement released on Sunday, the alliance aims to assist millions of feature-phone users in making digital payments inside the microfinance ecosystem.
Over 600 districts in India are home to micro-finance institutions (MFISs), and it was stated there was a need to implement technology-based solutions to lower the operational costs for these institutions and facilitate easy access to financing in tier-two and tier-three cities and rural areas of India.
“We need to focus on the entire spectrum of feature-phone consumers in order to make this option possible. a comprehensive digital EMI collection solution is urgently required to lower their overall operating expenses through the non-smart/feature phone segment, “said NextGen founder Taron Mohan.
He stated that NextGen intended to deliver technical solutions such as establishing a UPI Auto pay platform for recurring EMIs as an auto-pay function and riding on the UPI 123Pay service platform with NPCI.
The relationship brings numerous additional advantages for those who benefit from the MFI ecosystem, including UPI, banking, wallets, a system for paying bills, personal and business money transfers, and an interface for submitting requests for micro-loans and insurance.
“Due to the fact that the majority of MFI clients do not own smartphones, digitising collection data in the microfinance industry has been a significant problem. The partnership with NextGen will aid in creating a new payment and collection system employing feature phones and the technical assistance they provide “Jiji Mammen, CEO of Sa-Dhan, said.
The majority of the MFI organisations’ around 45 million individual beneficiaries use feature phones. With roughly 150 members, Sa-Dhan is a self-regulatory association for microfinance institutions recognised by the Reserve Bank of India.
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