MICROCAPITAL BRIEF: Micro Pension Foundation, Invest India Micro Pension Services, Visa Partner to Promote Savings by Low-Income Households in India

Micro Pension Foundation, an Indian nonprofit that helps low-income households gain access to microsavings products, and Visa Incorporated, a US-based payments technology company, reportedly are partnering to establish the “Micro Pension Financial Inclusion Lab” [1]. The lab aims to develop, test, and create new technologies such as mobile and prepaid payment cards to serve the underbanked population [2]. The lab also aims to create new micro pension products. The foundation serves 800,000 people. The Lab is a joint venture with Invest India Micro Pension Services (IIMPS), a social enterprise that aims to enable low-income workers to have savings accounts. Hayshreeben Vyas, co-founder of the Micro Pension Foundation, is also the non-executive chairperson of IIMPS.

As of 2012, Visa reported total assets of USD 38.7 billion and a net income of USD 2.14 billion. Financial information for the Micro pension Foundation and IIMPS are not available.

By Megan McGowan, Research Associate

Invest India Micro Pension Services (IIMPS):

Invest India Micro Pension Services (IIMPS) is a social enterprise that focuses on enabling low-income informal sector workers to accumulate micro-savings for use when they are no longer working due to age. Its Micro Pension® model is a technology-led initiative that delivers a variety of non-credit financial services to the working poor. IIMPS mainly delivers services in partnership with banks, microfinance institutions (MFIs), NGOs, credit unions, among other institutions. Clients save money through micro-payment instruments that include bank accounts, prepaid cards or mobile wallets. Currently, IIMPS is assisting approximately 400,000 urban and rural low-income individuals in over 100 districts of 14 states of India. Financial data for the organization have not been reported.

About Visa Incorporated:

Visa is a global payments technology company based in the United States. It partners with financial institutions to provide credit, debit and prepaid cards to consumers. Visa also offers payment programs and consulting services for commercial clients. As of 2012, Visa reported total assets of USD 38.7 billion and net income of USD 2.14 billion.

Sources and Additional Resources

[1] The Indian Express: “Visa in Pact to Promote Savings Among Low-Income Households,” http://www.indianexpress.com/news/visa-in-pact-to-promote-savings-among-lowincome-households/1180758/

[2] Micro Pension Foundation: “Payments & Inclusion Lab”, http://micropensionfoundation.org/beta/innovation/payments-inclusion-lab

MicroCapital, “Government of Rwanda, Visa Incorporated Partner on Electronic Financial Services,” January 8, 2012, https://www.microcapital.org/microcapital-brief-financial-diaries-project-preliminary-readings-low-income-people-in-papua-new-guinea-travel-long-distances-for-financial-transactions/

MicroCapital, “Mobile Telecommunications Network (MTN) to Offer Mobile Prepaid Product from Visa in Nigeria and Uganda,” November 29, 2011, https://www.microcapital.org/microcapital-brief-mobile-telecommunications-network-mtn-to-offer-mobile-prepaid-product-from-visa-in-nigeria-and-uganda/

MicroCapital Universe Profile: Invest India Micro Pension Services (IIMPS)

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Invest+India+Micro+Pension+Services+%28IIMPS%29

MicroCapital Universe Profile: Visa Incorporated

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Visa

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