Paris Microfinance Network

Western Union Offers Mobile Phone Money Transfers

Western Union, hoping to boost its share of the money-transfer market, has teamed up with RadioShack, a consumer electronics retailer, and Trumpet Mobile, a small wireless company, to offer a service that lets people based in the US send money through their cellphones.

The service is aimed at immigrants to the U.S. who regularly send money to family members in their native countries. Many of these immigrants don't have bank accounts and send the money by taking cash to a transfer service such as Western Union or a host of other firms.

Western Union, which already has a big share of the US$300 billion global money-transfer market, hopes that the cellphone service will bring in new clients and encourage existing customers to use it for a broader range of money transfers including paying utility bills and sending money domestically. People without bank accounts can now pay these bills in a variety of ways, including at convenience stores.

To use the service, people need to buy a Trumpet prepaid phone at a RadioShack store. Customers can then load up to US$200 on their phones for cash transfer via Western Union's network either within the US or internationally.

eBay launches MicroPlace.com investment site

MicroPlace, purchased in March 2007 by eBay Inc., has announced the launch of a new website that provides the first online marketplace for individuals to invest in microfinance and earn a financial and social return.

This is a very interesting and encouraging service as it allows anyone to participate in making a positive social impact thru personal investments. To date many of the microfinance funds and vehicules on the market have been investment tools for institutions, other funds, VC's or high-net worth individuals. Using the new site, investors can purchase microfinance securities with as little as $100 using eBay's PayPal service or a U.S. bank checking account, and have the option to direct their investment to a specific country and microfinance institution in the developing world.

How it works:
1) Set up an account and then purchase investments on MicroPlace.com from security issuers, who are responsible for making interest and principal payments to you.
2) The security issuers adds your funds to loans given to lending organizations (such as Microfinance Institutions), who in turn use those funds to provide loans to their end-borrowers.
3) The end-borrowers are generally self-employed poor, usually working in commercial activities, agriculture, fishing or craftspeople. They earn just enough to survive and use small loans to start or expand their businesses. The majority of them are women who in turn use earned revenues for household expenses, such as clothing, medical and education fees. As loans are repaid, security issuers are able to provide you with a financial return.

MicroPlace plans to make money by charging issuers to list. "We aspire to break-even, and if and when we reach profitability, eBay intends to reinvest any profits back into its own social initiatives," said Tracey Pettengill Turner, Founder and General Manager of MicroPlace.

MicroPlace thus far has partnered with OikoCredit USA and the Calvert Foundation to offer its first securities, which mature in two to four years and yield between 1.5% to 3% a year. Prospectuses are available online as well as financial reports of the local lending institutions, and MicroPlace is registered as a broker-dealer with the Securities and Exchange Commission (SEC). There are over 80 funds available on the market today investing in microfinance activities in developing countries. As the service grows we anticipate a growing range of securities to become available as investment options on microplace.com.

A great opportunity to invest part of your savings towards making a social impact in areas that need it most.

Seattle RadioShow Hosts Microfinance Discussion

KUOW, a local radio station in Washington, US, hosted a Microfinance discussion yesterday with several local leaders in the industry & a local borrower. An interesting listen, as they discuss how their organizations originated & operate, how they came into their roles, the local approach & services of their MFI partners, what results they are most proud of, their perspectives on the growth potential & needs of various global regions...and other topics. The local borrower, Theresa Tulio, comments that the most valuable service contributing to her success was the 12-week business training provided by the US MFI she borrowed from.

Guests include:
Sam Harris - Founder & President of RESULTS, an international citizens' lobby focused on ending poverty.
Mike Murray - Former Microsoft executive & co-founder of Unitus
Rick Beckett - President & CEO of Global Partnerships, based in Seattle.
Theresa Tulio - Retail store owner in Kirkland called Paint Box. A former client of Washington Cash, a microcredit organization that provides its clients with training and development assistance.

US Housing NGO gets $5mill

Enterprise Community Partners is a nonprofit organization that specializes in affordable housing and community development initiatives for low-income people in the United States. Their double-bottom-line mission is to provide affordable housing and help low-income people move up and out of poverty into the mainstream of American life. They have helped launch various housing developments up & down both East & West Coasts of the US, as well as Denver, Cleveland & St Louis. Enterprise assists it's partners on a variety of projects by leveraging private and public capital and helping local nonprofits bring a vision to life.

Today they announced receiving a $5 million dollar gift from Ron Terwilliger, chairman and CEO of the Atlanta-based Trammell Crow Residential, which they will invest through the newly established Enterprise Terwilliger Fund. Enterprise’s mission is to see that all low-income people in the United States have the opportunity for fit and affordable housing and to move up and out of poverty into the mainstream of American life.