The mooPay FinTech solution will bring transparency and cost savings due to digitization of the milk value chain and enable financial inclusion of farmers.
11 February 2021: As part of its value added embedded fintech services program for dairies and dairy farmers, the leading dairy-tech startup and World Economic Forum’s technology pioneer ‘Stellapps’ has launched a first of its kind fully automated Digital Direct Farmers Payment product for Private Dairy Sector, called “mooPay” in VRS Foods Ltd , Malanpur district of Madhya Pradesh on 14 January 20201 in the presence of the Honorable Director – Operation, Shri Narender Nagar Ji , under whose visionary leadership this project has been executed. VRS is one of the leading dairies in India and markets dairy products under the brand of Paras.
Stellapps mooPay system enables an automated digital payment solution that helps the dairy officials to transfer the milk payments digitally to member farmers from the dairies existing bank account to that of the farmers saving bank account. mooPay systems will automatically fetch milk payment data from the IoT devices deployed at every village-level milk collection centers which capture the milk pouring of every farmer.
The mooPay FinTech solution will bring transparency and cost savings due to digitization of the milk value chain and enable financial inclusion of farmers. The initiative will initially cover 900 villages in 3 states and will directly benefit 20000 farmers and later initiative will cover 5000 villages benefiting 100000 farmers.
In the milk value chain, transactions predominantly have been in cash and there are no formal records of individual farmers’ income. By capturing the cash flows from the dairy to farmer accounts, mooPay enables better creditworthiness assessment and facilitates lending to farmers. Stellapps’ alternative credit score, mooScore, gives reliable creditworthiness of dairy farmers based on their milk pouring.
Rahul Mallick, CEO – FinTech and Value Added Services, Stellapps said, “Financial Inclusion of farmers will be crucial to boosting farmer income. Enabling direct digital payments to farmer bank accounts not only helps improve financial inclusion and economic empowerment of farmers but also facilitates the design and delivery of innovative data-based farmer beneficiary programmes.”
Source: Business World