Yes. Licensed Lenders are paid in USD when a Borrower defaults.
Levels are put in place as an alternative way of scoring the credit ability of a potential Borrower. At Pocket Money we offer Rewards to users who complete tasks, such as voting in Polls and answering Surveys. Such tasks are often unrelated to borrowing and lending, but rather to generate commercial value for the time the User invests in completing the task.
The Rewards that the User earns cannot be spent in any way, except for serving as collateral in case the User defaults on a payment when taking up a loan. This is only applicable when User became a Borrower. For Users that do not take up a loan, Rewards cannot be cashed out.
As a Lender, you can trust that Pocket Money is the custodian of the Rewards associated to a specific User. Thus, when you decide to provide a micro loan to a Pocket Money Rewards User, we allocate aside the same amount of Rewards to match the principal of the loan.
- User reaches Level 1 and has earned 10,000 Rewards = USD 100
- User applies for a micro loan for USD 100 with your Licensed Lending Company
- You approve the micro loan for USD 100 plus interests to be paid back at the end of the term agreed
- The User/Borrower fails to pay back at the end of the term agreed
- Pocket Money "empty" the virtual pocket of the User/Borrower, which goes back to zero Rewards
- You, as a Licensed Lender, are credited USD 100 on Pocket Money Wallet