PayMate India, the mobile-payment solutions company, has announced that it now has more than 7,000 farmers using the Mobile Money Credit Delivery solution for farmers – MobileKisan Credit Card (mKCC) in a pilot project. The mKCC was developed in collaboration with Pallavan Grama Bank, Indian Bank and National Bank for Agriculture and Rural Development (NABARD), a system that helps farmers use their loan amounts in an easier, instant and more efficient manner.
The mKCC pilot project was launched by PayMate and the participating banks in October 2011 in the Villupuram district in Tamil Nadu. PayMate carried out a pilot project funded by NABARD in Villupuram district, which resulted in 7,000 farmers in that region enrolling for the service. NABARD invested Rs. 44.66 lakh for the project, as reported by The Hindu.
mKCC or Mobile Kisan Credit Card allows farmers to withdraw money or purchase seeds, fertilizers and other agricultural items eliminating the need for direct cash transactions. The RBI recently allowed the Kisan Credit Card to be modified as a smart card which could be used at ATMs for cash withdrawals following Budget 2012. With every transaction, farmers also receive instant reports via SMS of all transactions and available funds, enabling them to keep a tab on their spending. The company claims that, eventually, it will also allow farmers to make cash deposits to their mKCC accounts.
How to use: After activation of the registered KCC with Pallavan Grama Bank, the farmer can avail the service for withdrawal or purchase. To withdraw, the farmer has to approach the Business Correspondent (BC) and provide his mobile number and inform about the withdrawal amount. He then receives an IVR call from PayMate for his 4-digit PIN number. After entering the 4-digit PIN, the account will be checked for available balance and cash will be dispatched in case sufficient funds are available. To make a purchase, the farmer has to inform the shopkeeper about his requirements and confirm his mobile number.
Last year in April, PayMate had tied up with IFMR Rural Finance, which offers financial services in rural areas through its Kshetriya Gramin Financial Services (KGFS) entities. As a part of the initiative, the company had launched a mobile based person-to-person money transfer service in the Delhi to Uttarakhand corridor, as well as piloted a micro-loan repayments in villages in Ganjam, Orissa.
In November 2011, PayMate installed 20,000 tags across Nokia outlets, shopping malls and movie theatres for the movie Ra.One. The software which talks to NFC hardware i.e a terminal and the tag, has been developed by PayMate, while the hardware was picked up from overseas manufacturers. In the same report, Ajay Adiseshann, founder and MD of PayMate, informed MediaNama that PayMate was in talks with some players in the area to launch NFC based Payments product.
Recently, PayMate also launched a PayPOS mobile application, which allows small businesses to accept credit and debit cards and process electronic transactions directly on their mobile phones at the point of sale (POS).