What Is L-Pesa Kripton Microfinance?
L-Pesa is a micro-loans lending company founded in Delaware in the U.S. The company offers personal, group and business loans via mobile phones in developing countries. A user who can repay their loan in time can access higher loans with a lower interest rate and payment period. Before getting a loan from the platform, L-Pesa conducts credit checks of the borrower with the help of credit reference partners. In case it is a new customer, a quick interview is done before the customer can be given a loan.
The firm has operated in Kenya and Tanzania in the last three years and currently has a customer base of 150,000 customers and the loan repayment rate for the loans they have provided to customers is 90%. The firm also has plans to open branches in India and Uganda and expand its operations to other parts of Africa and Asia.
Current Financial System In Developing Countries
In the developing countries under the current financial system, there are many people who cannot access financing from the traditional financial institutions due to lack of the proper paperwork or because the requirements put up by the loan facilitating institutions. Additionally, for microfinance to work its operations have to be efficient, and the operational costs limit how low such platforms can go in regard to lending amounts. However, the use of blockchain technology in the financial sector allows the overcoming of the existing barriers and leads to efficiency and transparency. Further, it reduces the cost of doing business, which makes small lending viable.
Blockchain will allow L-Pesa to expand its reach to those people who might seem unprofitable leading to a more inclusive community. Tokens will also help the L-Pesa platform build a community and create a network effect.
L-Pesa LPK ICO Details
The platforms token is called Kripton or the bitcoin of Africa, and it was issued in a bid to raise $25 million to meet the demand and to allow the firm offer better services to its growing customers. The firm hopes that Kripton will be used as a means of exchange and offer the first African crypto peer-to peer-lending platform.
The pre-sale will start on 10th March this year while the public pre-sale on 10th April 2018 and end on 10th June this year. The Kripton coin will be used:
- As a means of exchange on the L-Pesa microfinance platform
- As the platform expands, people will be allowed to pay back their loans with the token
- Those with the digital coins can get loans at a reduced cost.
Those who want to buy the tokens can do it from their L-Pesa account or from the ICO register whereby the address of the register will be given 15 minutes before the start of the presale that will happen on 10th March 2018. The minimum coins that one can buy is 5000 coins. The tokens will be sold at $0.02 for every coin. Investors can buy the digital coins with bitcoin or Ethereum.