Originally published: October 24, 2007
Source: Reuters, MicroPlace
MicroPlace, a wholly-owned subsidiary of eBay Inc., today announced the launch of a new website (www.microplace.com) that provides the first online marketplace for everyday people to invest in microfinance and earn a financial return. With the new site, investors can purchase microfinance securities with as little as $100 using eBay's PayPal service or a U.S. bank checking account, and have the option to direct their investment to a specific country and microfinance institution in the developing world.
“In the past, microfinance investing has generally been pursued by large financial institutions or high net-worth individuals, and has been less accessible for most people,” said Tracey Pettengill Turner, Founder and General Manager of MicroPlace. “MicroPlace now offers an easy way for the everyday investor to participate in microfinance; the opportunity to receive a return on their investment; and empower the world’s working poor to lift themselves from poverty.”
Turner said MicroPlace makes money from charging issuers to list. "We aspire to break-even, and if and when we reach profitability, eBay intends to reinvest any profits back into its own social initiatives," she added. MicroPlace chose the Calvert Social Investment Foundation to offer its first 10 securities, which mature in two to four years and yield 1.5% to 3% a year. Prospectuses are available online, and MicroPlace is regulated as a brokerage by the US Financial Industry Regulatory Authority.
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Related news:
- EBay: The Place for Microfinance (Business Week, 24 Oct 2007)
- eBay Ventures into Microfinance, Purchases MicroPlace (the Microfinance Gateway, 2 Apr 2007)
