Because M-Pesa was born on feature phones, citizens of many countries in Africa can access mobile wallets without a smartphone. And those who lack even a feature phone can get payouts in cash directly from WorldCover. WorldCover raises money from institutional investors who are used to “catastrophe bond” returns of 5% to 7%. It charges farmers enough to get an additional margin on top of that. Eventually, WorldCover hopes to have its portfolio underwritten not only by institutional investors but also by retail investors. It’s a model similar to LendingClub . Because WorldCover is taking money from investors, it’s passing on the risk of a big drought hitting its entire portfolio to those investors, who in theory are happy to take on the risk as long as it’s part of a larger diversified portfolio.

https://www.wsj.com/articles/how-the-internet-is-changing-life-for-the-worlds-poorest-people-smartphones-optional-1519560000