Credit Disbursement & Collections (Micro-loans)
In LATAM, millions of people work in the informal economy and remain outside of traditional credit systems. Without collateral or a credit history, they are often excluded from banks and pushed toward alternative solutions. For financial service providers, offering microloans at scale is challenging - legacy infrastructure makes disbursement slow, collections costly, and compliance heavy.
The pain points are clear
- Unbanked customers: many borrowers don’t have a bank account, which limits payout options and forces providers to rely on costly intermediaries.
- Inefficient flow of funds: borrowers must provide a bank account, lenders send funds through banks (incurring transaction fees), and borrowers then need to cash out or forward funds, each step adding more delays, hidden costs, and limited control.
- Complex onboarding: low financial literacy often means borrowers struggle to provide documents, understand terms, or complete applications, slowing down approval and raising drop-off rates.
- Cumbersome processes: current rails require too many steps - users must share a bank account, providers transfer funds (with transaction fees), borrowers then cash out or forward money (more fees). Each layer adds friction.
- Operational overhead: servicing thousands of small loans requires large support teams, manual oversight, and fragmented repayment systems, making the model expensive to run.
- Low retention: when payouts take days and repayments are cumbersome, borrowers lose trust and look for faster informal solutions.
The NAKA solution
With NAKA, you can launch virtual, (self)custodial NAKA+ Visa Platinum payment cards that let you disburse microloans instantly, directly into the user’s wallet. Borrowers receive funds in the tokenized asset by your choice (eg. USDT, XAUT), which they can use immediately across the Visa Payment Network (over 150 million locations) or withdraw in cash via ATMs. Repayments can be collected the same way - simple, direct, and fully digital.
Business Impact
- Accelerated growth: Lower operational friction and faster disbursements increase loan volumes, improve margins, and strengthen borrower retention.
- Deepened inclusion: Extend access to unbanked and underbanked segments, particularly in underserved regions and among informal workers.
- Brand trust & loyalty: Transparent, immediate delivery of capital builds anticipation and loyalty, critical for long-term stickiness in competitive markets.
- Sustainable credit ecosystem: Self-custodial, mobile-first disbursements reduce regulatory and custody risks while supporting financial inclusion at scale.
- Future-ready services: Providers can layer on DeFi-powered yield, savings, or insurance products, as well as loyalty and rewards programs linked directly to the card, enhancing both customer experience and revenue potential over time.
- Keep an existing loan infrastructure: You will be responsible for handling all loan infrastructure, as by now. We help you modernize disbursement and repayment through NAKA’s blockchain-based payment rails, enabling instant, transparent, and self-custodial fund delivery to your borrowers.