Merchants Development Driving Rural Markets (MDDRM) Project is an EU funded initiative. UNCDF's Shaping Inclusive Finance Transformations (SHIFT) programme in South Asian Association for Regional Cooperation (SAARC) - SHIFT SAARC is a regional market-facilitation initiative aiming to improve livelihoods and reduce poverty in SAARC countries.

MDDRM seeks to stimulate the expansion of digital technologies for micro-merchant segments by encouraging innovation and linkages between retail and financial services industries. MDDRM primarily focuses its interventions in Sirajganj, Tangail, Jamalpur, and Sherpur districts targeting 10,000 retail Micro-merchants.

SHIFT MDDRM is facilitating 6 pilot innovation models aiming to connect micro-merchants with FMCG companies and financial service providers to accelerate their business growth using digitals means. These models will also utilizing micro-merchants networks reaching rural low income consumers through retail level value chains. The retail value chains will leverage the creative ideas and commercial instincts of FMCG and DFS providers by stimulating them to test innovative cross-sector business model and end-customer requisition strategies. The types of the business models are listed below:

1. Facilitating digital payment and credit services for micro-merchant-Piloted by Bank Asia Consortium
2. Accelerating mobile money payments and credit for micro-merchants- Piloted by SureCash
3. DFS aggregator platform for micro-merchants- Piloted by PayWell
4. Promoting digital financial services for women micro-merchants in rural Bangladesh- Piloted by ISocial
5. Digitizing transactions between micro-retailers and distributors for managing purchases, stocks, payments, and leveraging transactional data to access credit worthiness- Piloted by FieldBuzz
6. Facilitating digital payment and credit services for micro merchant-Piloted by Synesis IT

Bank Asia is implementing a digital payment gateway with an associated bank account and a digital wallet that enables transactions between consumer and micro-merchants and between micro-merchants and distributors of FMCG companies. This business model will provide access to formal credit opportunities for micro-merchants preferably through alternative credit scoring.

SureCash is implementing a business model where micro-merchants will be onboard as MFS user and MFS agents of mobile based digital transaction platform which enables them to perform cash-in, cash-out operation and transactions between consumer and micro-merchants and between micro-merchants and distributors of FMCG companies.

PayWell/CloudWell is implementing an aggregator digital-platform by providing bundle of services such as in-store merchant payments, B2B digital payment, assisted e-commerce, paying government fees and bills etc. The main objective of this innovation model is to provide multiple services through a simple one stop platform by using single fund and device to generate additional revenue with increased footfall.

iSocial is implementing Tech+ business model that combines the use of digital technologies with training, skilling and business development support to build women business networks. This initiative will enable 200 women to become micro-merchants who will be providing FMCG products and limited health services for women, children, and adolescents in their local communities.

FieldBuzz is building a user-case for digitization of lower-end of FMCG supply chain which is retail micro-merchants and distributors. This is being implemented by introducing digital stock ordering platform where micro-merchants can place their product demand to the distributor through mobile phone device.

Synesis IT: This intervention will be building a user case for e-commerce being a medium for purchase and sales of products in rural areas by rural consumers. The objective of implementing the e-commerce platform ‘Ek-Shop’ is to understand the benefit of bringing incremental income for micro merchants and how the retail merchants can become part of the e-commerce chain for providing services to customers who do not have smartphones or are not able to make informed choices on products and services to purchase.