NextGen ties up with Sa-Dhan to promote digital payments

Micro-Finance Institutions (MFIS) have a presence in over 600 districts in India and seek to bring technology-based solutions for these institutions to reduce operational costs and enable easy finance availability in Tier II and Tier III cities/rural. the wanted. regions of India, it said.

“To enable this solution, we must target the entire spectrum of feature-phone users… through the non-smart/feature phone segment of a consolidated digital EMI collection solution to reduce their overall operating costs. There is an urgent need, said Taron Mohan, founder of NextGen.

NextGen plans to bring technology solutions like setting up UPI Auto Pay platform for regular EMIs as auto pay function while riding on UPI 123Pay service platform with NPCI (National Payments Corporation of India).

With the partnership, the beneficiaries of the MFI ecosystem come with a host of additional benefits including an interface enabling requests for UPI, banking and wallets, bill payment systems, personal and merchant money transfers and micro loans and insurance.

“Digitalization in collections has been a major challenge in the microfinance sector as most MFI customers do not have smart phones. The association with NextGen will help them develop a new payment and collection system with no technical intervention using feature phones. ,” said Jiji Mamon, CEO of Sa-Dhan.

There are around 45 million individual beneficiaries under MFI organizations and most of them are on feature phones. Sa-Dhan is a self-regulatory organization recognized by the Reserve Bank of India for micro finance institutions with approximately 150 members.