Talino Venture Studios launches, invests in inclusive instant payment system Higala

Talino Venture Studios, a global venture studio for sustainable innovation, and Chemonics International, a sustainable development firm, have launched and invested in Philippine fintech startup Higala.

An inclusive instant payment system (IIPS), Higala connects thrift banks, rural banks, and microfinance institutions currently excluded from payment networks because of high switching and on-ramp costs.

Also Read: Talino Venture Studios lands US$5M to bridge financial inclusion in emerging markets

Despite 400 rural banks in the Philippines, only 18 are part of InstaPay because of the lack of interoperability among them. As a result, the full potential of financial inclusion remains largely untapped, depriving many Filipinos of the benefits modern banking technologies can offer.

Higala promotes inclusion by lowering the cost of real-time payments, helping financial institutions price their instant payments reasonably. It also aims to provide inclusive financial solutions to the underbanked and rapidly enable merchants to accept digital payments.

The fintech startup is also building a core instant payment technology that can accommodate financial institutions of all sizes and turn banks into digital banks through white-label app services.

Higala leverages the open payment platform of the nonprofit Mojaloop Foundation. With Mojaloop’s open payment framework, Higala facilitates connectivity among various financial entities, including banks, institutions, payment gateways, merchants, and the central bank. This approach enhances affordability and accessibility in financial transactions.

“Higala will help modernise our country’s digital financial infrastructures and enable the participation of financial institutions through our network. Our goal is to make banking more inclusive, especially to the underserved segments of the population that have limited access to traditional banking services,” Higala President and CEO Vice Catudio said.

Also Read: Philippine startups raised US$956M in 2023 amidst funding winter

“Through Higala’s open payment platform and suite of solutions, we will enable new market players to aggressively develop and market innovative payment services to both consumers and merchants. This includes integrating solutions such as regulatory technologies like e-KYC and AML-TF monitoring, AI-based risk detection and management, banking microledgers, payment hub that will enable instant fund transfer across participating banks, and a global transaction gateway for remittance,” he added.

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