INIPAY

In Latin American inner cities, especially in those with populations of less than 100,000 inhabitants, a communication infrastructure deficit was found. It restricted digital and electronic transactions, excluding thousands of local businesses and their communities from the traditional financial system. 

Inipay seeks to bridge this gap to include millions of individuals financially and promote equality. 

In Latin America, the lack of communication infrastructure restricts the ability of local businesses (both for goods and services) to process digital transactions using traditional means -such as credit and debit cards- as well as digital wallets. This leaves thousands of small businesses out of the traditional financial system, forcing them to operate only on cash transactions. 

Currently, over 3,000 cities in Latin America with a population of less than 100,000 inhabitants have a poor wireless/cell phone infrastructure. Inipay service enables stores without access to mobile connectivity to settle financial transactions.

The main product is a LoRA connectivity device which is connected to the shopkeeper’s cellphone through Bluetooth and associated with a payment app.

In the first version, the customer try to make a payment. Then, the shopkeeper will upload the data of the customer’s digital or electronic payment method on the app. Their cellphone will connect to the LoRA device and this transaction will be transmitted through radio frequency to a signal concentrating antenna located up to 15 kilometers (9.3 miles) away. This antenna is connected to the Internet and transmits the transaction to a payment processing backbone, following the payment chain specified by each country’s regulations.  

Inipay’s service includes manufacturing and providing the LoRAWAN modem, the concentrators (antennas), the cellphone app to enter data without 3G or 4G network coverage and redirecting the transaction from the local network to the payment processing platform.  

Local businesses cannot access digital or electronic payment systems  due to the lack of 3G or 4G cellphone reception. On the one hand, this leaves them and their customers out of the traditional banking system and forces them to use cash. As a result, they lose the ability to grow within the financial system. On the other hand, they are less competitive than large chains from shopping malls, since customers who want to make digital or electronic payments prefer them.  

This creates an imbalance in small towns (with a population of less than 100,000 inhabitants), pushing local businesses to compete only in the opportunity market segment. It also excludes them from the large purchase segment, since these purchases are frequently made at big, downtown businesses, which offer a wide range of payment options.  

Another considerable benefit brought by this system is access to credit, both for customers who can now pay with credit cards, and stores that can now request loans from banks and financial institutions to increase their stock or make improvements, since their financial transactions are recorded. 

The main goal of this project is to introduce digital and electronic payment options at local businesses, in cities with a population of less than 100,000 inhabitants, throughout Latin America. The project primarily aims to improve the competitiveness of businesses, their financial inclusion as well as their customers’. 

Setting up and using a LoRa network in a city, apart from its use as a payment method, could trigger other uses and high-impact applications for individuals and government agencies: food delivery, proof of life certificate to cash government assistance, tax collection, among others.

This project intends to reach the largest coverage possible in terms of financial inclusion in Latin America. In its first two years, though, it is expected to reach between 4 and 6% of the targeted cities (between 30,000 and 100,000 inhabitants), with a basis target of 150 stores per city, reaching 120 cities, 18,000 stores, and almost 2,000,000 people.

In December 2020, we deployed our first INIPAY network in the city of San Isidro (Buenos Aires, Argentina). Today, we have almost 40 merchants that can now charge digitally regardless of the quality of the internet in their area. We are also about to inaugurate a network in one of the most important tourist spots in the north of Argentina: Cafayate, in the province of Salta.

The innovation in this product lies in the use of a robust, tested technology applied in an unprecedented scenario: LoRAWAN for digital payment methods. It is worth mentioning that available prototypes ensure technical feasibility and that business models have already been produced and validated together with payment processing companies. Inipay’s innovation also lies in the use of this technology and the implementation of a high-impact business model in fintech. Another original feature is the use of platforms.

This project intends to reach the largest coverage possible in terms of financial inclusion in Latin America. In its first two years, though, it is expected to reach between 4 and 6% of the targeted cities (between 30,000 and 100,000 inhabitants), with a basis target of 150 stores per city, reaching 120 cities, 18,000 stores, and almost 2,000,000 people.

Full-time staff: 7

part-time staff: 1

contractors: 1

We have a highly qualified technical team composed of electronic and computer engineers. Also, from the commercial area, we have profiles with experience in banks and the world of finance. In fact, one of our investors (Facundo Garreton) was the founder of invertironline.com, one of the largest investment platforms in Argentina.

Our team is composed of people from different backgrounds, and even from different countries (Argentina, Venezuela, Uruguay). Also, there is a very rich cultural diversity among the team members. The team is composed of 3 women and 4 men.

It seemed to us a good opportunity to strengthen our project and to be able to accelerate our landing in the countries we are targeting.