NextGen collaborates with Sa-Dhan to boost digital payments

31 Oct 2022 , 01:15 PM

NextGen, a fintech solutions provider, has partnered with Sa-Dhan, an association of microfinance institutions, to promote digital payments by feature-phone users in the microfinance space.

According to a joint statement issued on Sunday, the partnership intends to assist millions of feature-phone users in making digital payments through the microfinance ecosystem.

Microfinance institutions (MFISs) are present in over 600 districts in India, and there is a need to introduce technology-based solutions to reduce operational costs for these institutions and enable easy finance availability in tier two and tier three cities/rural areas, according to the report.

NextGen intends to bring technical solutions such as establishing a UPI Auto pay platform for regular EMIs as an auto-pay function, leveraging the UPI 123Pay service platform with NPCI (National Payments Corp. of India).

The partnership brings many additional benefits to the MFI ecosystem’s beneficiaries, including UPI, banking and wallets, a bill payment system, individual and merchant money transfers, and an interface for raising requests for micro-loans and insurance.

The MFI organisations serve approximately 45 million individual beneficiaries, the majority of whom use feature phones. Sa-Dhan is a self-regulatory organisation for microfinance institutions recognised by the Reserve Bank of India, with approximately 150 members.

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