Homegrown financial services provider TraXion is offering financial inclusion solution to the unbanked sector in farming communities in Mindanao by utilizing a “scaled back” type of blockchain technology, undoubtedly the most modern platform available in the financial industry.
“There are three tools we are providing farmers,” TraXion CEO Ann Cuisia said in an interview when asked how they plan to “bank the unbanked” farmers in remote communities. “We had to step back a little in terms of the technology that they (farmers) would use. They don’t need smartphones to avail of our services, but instead just physical cards with QR codes that they could tap in farm centers with 3G connectivity.”
Cuisa was referring to the blockchain-enabled platform TraXion has introduced in Mindanao that allows farmers to integrate their payroll into their system. The blockchain platform will also enable farmers to receive their salary securely using their electronic wallets.
She explained farmland owners could use the physical cards with QR code that contains personal information. The QR code will serve as their wallet and could be used to transact and make payments without the need of cash. They can also cash out the funds in the e-wallet through ‘bayad’ [payment] centers.”
For small-time or farm employees, the digital wallet gives them the option to receive their salaries without the risk of carrying a sizeable amount of cash. This is important when buying or selling farm goods which usually involves tens of thousands of pesos in transactions, with some amounting to hundreds of thousands to even millions.
Aside from payroll, the TraXion platform also offers savings, loans and other financial services the traditional banks could not provide.
She said TraXion has partnered with different banks to provide the widest service coverage. Typically, the company partners with banks where the farmers are holding accounts or banks which serve a targeted community.
“Imagine underserved being able to experience inclusiveness regarding financial services.
Imagine farmers accessing fair-pricing without intermediaries, the profitability would be different. The type of livelihood would be elevated. Imagine the farmers becoming the first and never again the last in the chain value. This is what we can promise,” she added.
She also assured farmers that blockchain technology is easy to use and people living in the hinterlands could access the technology. Blockchain, Cuisia said, could be an important tool to expand opportunities for farmers to transact, gain access to financial services by banks and financial institutions, store information and to share the data to promote transparency, traceability, and integrity.
At present, TraXion is collaborating with over 600,000 sari-sari (retail) stores all over the Philippines to encourage them to use the technology when transacting with farmers.