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I just went to page for lenders to donate / lend 50$ to a guy in Kenya. First you say this: > You can propose any interest rate between 5% and 30%. The first 5

I just went to page for lenders to donate / lend 50$ to a guy in Kenya. First you say this: > You can propose any interest rate between 5% and 30%. The first 5% goes to Zidisha to cover money transfer fees, and anything above that goes to lenders. but then, on the next page you say that I need to pay 1.75$ for money transfer fees. What is the problem there? Why do I have to pay this fee multiple times? Will I also be charged that fee again when people start paying off? Look, the idea of microfinancing is nice, but the way you play with the numbers in order for them to "look better" is just to scammy. In the end of the day, I just can't trust you anymore that the money really goes where you says it goes if you can't come up with the clear upfront cost breakout without playing games. If you are not playing games, but simply not understand how this looks like, then please just shut down and stop poisoning the good idea with atrocious presentations.

jkurnia 13y ago
I understand applying a fee for money transfers to both lenders and borrowers looks misleading when compared side by side in this way. These are two separate costs. The fee for lenders offsets the cost of receiving their funds via PayPal or credit card. It is set to match as closely as possible the average transfer fees that our organization pays to PayPal and Stripe. The 5% charged to borrowers covers international money transfer costs, and the cost we pay to local payment services in each borrower country. This fee is also set to match the average money transfer cost we pay across all countries. We use two separate fees because it allows us to ensure that we receive income at roughly the same time costs are incurred. This helps ensure we always have enough cash flow to cover our costs, no matter how quickly the organization grows.

jkurnia 13y ago

I understand applying a fee for money transfers to both lenders and borrowers looks misleading when compared side by side in this way. These are two separate costs. The fee for lenders offsets the cost of receiving their funds via PayPal or credit card. It is set to match as closely as possible the average transfer fees that our organization pays to PayPal and Stripe. The 5% charged to borrowers covers international money transfer costs, and the cost we pay to local payment services in each borrower country. This fee is also set to match the average money transfer cost we pay across all countries. We use two separate fees because it allows us to ensure that we receive income at roughly the same time costs are incurred. This helps ensure we always have enough cash flow to cover our costs, no matter how quickly the organization grows.