Innovations in microfinance have been ongoing since its inception in the mid-seventies. Recently, however, a group of microfinance institutions worked with Hewlett-Packard and developed an innovative technology, then piloted it using 3 unique microfinance business models. The technology - the Remote Transaction System - dramatically reduces transactions costs, fraud, and client/lender downtime using off-the-shelf handhelds and already-available GSM network capacity. This innovation, with its potential for broad-based application, could help microfinance leapfrog from small-scale, donor-funded operations into comprehensive financial systems serving developing communities around the world.