Today, AuctionBytes ran eBay Getting into Micro-Finance through Purchase of Microplace by Ina Steiner. eBay’s 2006 10-K included eBay MicroPlace as a subsidiary, though, as Steiner points out, this may be the first public mention.
[MicroPlace] is making microfinance loans available to the developing world in particular― Gary Briggs, eBay
[…] a web-based, eBay-like marketplace to connect ordinary people (with investable assets as little as $100) with microfinance entities that need capital.― MicroPlace
A companion
It looks like MicroPlace users will fund institutions, which would be an interesting companion to Kiva, where people fund individual loans.
When people remotely fund individual loans administered by a separate institution, i.e. Kiva’s Field Partners, I suspect local microfinance market forces are, ironically, weakened. If MicroPlace allows people to invest in institutions, they might access microfinance without that weakening.
A competitor
If MicroPlace competes with Kiva’s model of funding individuals, they would be the first and welcome for it. But, unless the competitors collaborate, the microfinance institutions costs could rise satisfying multiple partnership requirements and oversight.
Hopefully, this wouldn’t affect Kiva’s payment system; they have an arrangement with PayPal to process transactions for free and PayPal is owned by eBay.
Merrier
Whatever they do, MicroPlace is welcome to the party, it will only get better—and though Kiva’s model has some weakness from its strength, they’ll be an engaging contender for a long while.