MICROCAPITAL BRIEF: Microfinance Institution SeedFinance Corporation and Smart Communications Inc, Both of the Philippines, Partner to Provide Mobile Money Services through “Islands Activation Program”

SeedFinance Corporation, a microfinance institution in the Philippines, and Smart Communications Inc (Smart), a telecommunications subsidiary of the Philippine Long Distance Telephone Company, have partnered to launch the Islands Activation Program (IAP), an initiative to bring mobile-based financial products and technologies to previously untargeted islands of the Philippines. SeedFinance, through its partnerships with 73 cooperatives, reports a client base of 1.2 million, which will be able to leverage Smart’s mobile phone-linked electronic cash cards, dubbed “Smart Money”, to send and receive funds. Electronic Network Cash Tellers Inc (ENCASH) of the Philippines, a partner in the IAP, will also install automated teller machines (ATMs) at some branches of the cooperatives.

By Lindsey Shaughnessy, Research Associate

About Electronic Network Cash Tellers Inc (ENCASH) of the Philippines: Electronic Network Cash Tellers Inc (ENCASH) is an independent automated teller machine (ATM) deployer in the Philippines. ENCASH, founded in 2007, aims to provide access to ATMs in areas that lack access to traditional banks and financial services.

About SeedFinance Corp: SeedFinance Corporation, founded in 2002, is a non-governmental organization that provides savings and loan products, as well as technical and implementation assistance, to low-income individuals and small businesses in the Philippines. SeedFinance and its 70 partner organizations work with approximately 1.2 million clients across the Philippines. SeedFinance does not report to the Microfinance Information Exchange (MIX), the microfinance informating clearinghouse.

About Smart Communications Inc: Smart Communications Inc. (Smart) is a wireless service provider in the Philippines that was founded in 1991. Smart provides postpaid and prepaid plans; broadband Internet services; and Smart Money, a debit-card-linked mobile phone service that allows users to pay bills, purchase goods and transfer funds. Smart is a subsidiary of the Philippine Long Distance Telephone Company. As of June 30, 2010, the Philippine Long Distance Telephone Company reports total assets of PHP 264 billion (the equivalent of USD 5.98 billion).

Sources and Additional Resources:

[1] The Philippine Star, “Smart partners with Seedfinance”, September 14, 2010. http://www.philstar.com/Article.aspx?articleId=611701&publicationSubCategoryId=74

MICROCAPITAL BRIEF: “Microfinance International Corporation (MFIC) and Smart Communications Inc (SMART) Team Up to Expand Remittance Services in the Philippines”, August 31, 2010. https://www.microcapital.org/microcapital-brief-microfinance-international-corporation-mfic-and-smart-communications-inc-smart-team-up-to-expand-remittance-services-in-the-philippines/

MicroCapital’s Microfinance Universe profile: Electronic Network Cash Tellers Inc (ENCASH)

MicroCapital’s Microfinance Universe profile: SeedFinance Corporation

MicroCapital’s Microfinance Universe profile: Smart Communications Inc

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