Mobile payment provider True Money Cambodia signed a memorandum of understanding with local microfinance institution Niron Mikroheranhvatho Plc on Friday to facilitate bill payments for the microlender’s 60,000 customers.
“Niron customers will be able to pay back their loans or interest payments to Niron through our True Money agents,” said Kong Mean, managing director of True Money Cambodia.
He said True Money’s goal is to target its mobile money services towards the 90 per cent of Cambodians who do not currently use these services. The company aims to increase its competitiveness against more-established mobile payment services, such as Wing, which boasts over 600,000 customers.
According to Mean, True Money currently has more than 5,000 agents across Cambodia.
Chhun Sarorn, corporate sales manager of True Money Cambodia, said the company signed similar agreements with 13 microfinance institutions (MFIs) this year. It is set to sign its next agreement with Chamroeurn Microfinance on Tuesday.
Lay Kimchhen, CEO of Niron, said the MFI currently has over 60,000 customers, 54 branches and over a thousand credit officers. He said the partnership with True Money would free up resources in Niron’s credit department.
“It will allow our credit officers to find new customers instead of spending time collecting loan payments or interest payments [from existing customers].”