POS provider for MSMEs Mswipe develops scoring tool for banks to better assess borrowers’ creditworthiness

Launched in 2011. Mswipe’s investors include B Capital, UC-RNT, Falcon Edge Capital, Matrix Capital Partners, DSG Partners, and Epiq Capital. Photographer: Dhiraj Singh/Bloomberg

Point of sale (POS) terminals provider Mswipe on Wednesday announced a credit scoring system for lenders including banks, financial institutions, and non-bank finance companies (NBFCs) to better assess micro, small and medium enterprises (MSMEs) for extending credit. The scoring done is based on alternative data including transaction variables, merchants’ customer profile, loyalty base, and other payment-related parameters along with traditionally available demographic data and credit bureau rating. The scoring tool intends to make assessments of MSMEs’ creditworthiness easier “and provide the opportunity to differentiate risks thereby opening possibilities of dynamic pricing of credit solutions,” the company said.

Mswipe would also offer retailers an affordable loan repayment facility through daily settlements on POS loans. MSMEs, which comprise 95 per cent of businesses in India, usually face challenges in securing credit from banks and other traditional lenders due to the lack of regular banking habits, financial and income statements of MSMEs. “We have created an extremely powerful tool to differentiate risk and not only expedite decision making for banks and NBFCs but also offer risk-based pricing for credit solutions. The credit score enhances Mswipe’s ability to allow our lending partners to extend credit products like loans, credit lines, loans against POS to MSMEs in a quick and affordable manner,” said Amit Mande, Head–Lending Business, Mswipe. The scoring tool was announced in partnership with consumer credit reporting agency Equifax.

Subscribe to Financial Express SME newsletter now: Your weekly dose of news, views, and updates from the world of micro, small, and medium enterprises

The Mswipe credit score will be available for industry partners to offer credit solutions to MSMEs who have been impacted due to Covid induced lockdowns amid the second wave of the pandemic. “With its partnership with Mswipe, Equifax brings a unique blend of differentiated data and analytics thereby assisting MSME lenders and Fintechs navigate through crests and troughs of the lending cycle, further promoting responsible lending in these times,” said Nipa Modi, Country Head, Fintech, Insurance & WFS, Equifax.

Mswipe claimed to be the largest independent mobile POS merchant acquirer and network provider with 6.75 lakh POS and 1.1 million QR merchants in India. The company provides payment acceptance services for MSMEs to accept payments via cards, wallets, mobile payment apps and bank apps, contactless and QR payments. Launched in 2011. Mswipe’s investors include B Capital, UC-RNT, Falcon Edge Capital, Matrix Capital Partners, DSG Partners, and Epiq Capital.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Source link


China, U.S. can coexist in peace but challenge is enormous – White House

Article content WASHINGTON — White House Indo-Pacific coordinator Kurt Campbell said on Tuesday that it was possible for China and United States to...

Play-To-Earn Industry: B**** Better Have My Money

Play-to-earn games allow gamers to collect or earn crypto/NFTs that they can sell on the market. Gamers who play regularly can accumulate items...

An Honest Tale of How We Built a Humanoid Robot

Robo-C is an anthropomorphic robot built to interact with humans.Read the full storySource link

No invitation received from Centre; always believed in dialogue to resolve problems: Congress

Jammu and Kashmir Congress president G A Mir on Saturday said his party has not received any invitation from the Centre for participation...