When people learn about microfinance, one of the first questions they ask is “how can I help?” I was reading an article at the Microfinance Gateway called Open Up Your Virtual Wallet, where they compare two online lending platforms: Kiva.org and Microplace.
Although I personally use Kiva.org, I think that both platforms are a really easy and beneficial way to helping promote awareness about microfinance. Here is a quick highlight of what I personally think are the benefits to each:
- Whereas Kiva.org is a non-profit, Microplace earns it’s investors an interest. I think that this is extremely beneficial to microfinance because it opens up microfinance to a whole new demographic of people.
- Microplace is owned by Ebay. We all know the success that Ebay has had. With the ways that Ebay has changed online buying, I can’t wait to see what new innovative ways. Additionally, being a subsidiary of Ebay, Microplace will get world wide attention
- At Microplace, if a loan is defaulted, the security issuer bears the risk, so it is theoretically less risky than Kiva, so people who are hesitant or low on finances will feel more secure about donating with Microplace.
- Kiva allows you to get more involved with the loan recipient. The UI is really easy to browse, and you get a real sense of being a part of the solution.
- The fact that Kiva is a non-profit will spark more involvement around the world with people who are trying to make a difference and help alleviate poverty.
- Kiva is easier. With Kiva, all you have to have is a Paypal account and you can donate from anywhere in the world. Within finding a recipient, you can easily make the transaction within minutes.
Although there are differences in these two organizations they are both working for the same goal. Both are working towards a great cause, and whichever one you choose — know that you are part of the solution.
