Syndicate content

finance-as-utility

Microcredit, microsavings…but what about micropayments?

Ignacio Mas's picture

Why is the term microfinance still used by so many as if it were synonymous with microcredit? Credit is only one form of finance. All the more thoughtful commentators on the Andhra Pradesh crisis agree that debt should not be the only financing option available to poor people.

In a recent blog post, my colleague Jake Kendall and I explained how the Financial Services for the Poor team at the Bill & Melinda Gates Foundation focuses on savings because it’s an option that everyone should have and because we felt donors have neglected it in the past.

But there is another service that has received even less attention from the microfinance community: payments. When is the last time you were at a microfinance conference and someone mentioned the payment needs of the poor with any degree of passion? And why do academic researchers devote so little attention to it?