Payment Innovations Working Group Intro Deck

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Photo Credit: Gates Founda3on

Payment Innova3ons Working Group Briefing January 20th, 2012

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Payment Innova3ons Team

•  Seeking to increase adop3on of electronic payments as a superior alterna3ve to cash

•  Technology agnos3c (e-‐vouchers, smart cards w/POS devices, mobile money)

•  2 major USAID/GBI Ini3a3ves in 2012 that benefit NetHope members: –  BTC Alliance (public-‐private partnership, including NGOs)

– Agency wide support for increased use of electronic payments by program partners (such as NGOs)

•  NetHope working group being formed with leadership from Mercy Corps (January 2012)

Electronic Payments

Mobile Payments Smart Cards ACH/EFT

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Payments disbursed and received using mobile phones

Payments made and received using cards

Direct deposits, wire transfers, and ACH debits

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Mobile Money Models

Benefits Example Challenges

Cost Savings MACE Foods in Kenya eliminated all losses due to theY by moving from cash payments to M-‐Pesa mobile payments saving over $ 56,592 USD.

Start-‐up costs can be higher in nascent MM ecosystems-‐ Dalberg report shows 35% more costs for NGO programming in Hai3

Transparency Afghanistan police officers whose salaries were paid with mobile money rather than cash received 30% more in salaries with the elimina3on of salary lost to skimming.

Challenges with partner engagement, especially when middle men are deprived of income

Security Women in Hai3 who received payments to their mobile phones, felt safer than when they were paid in cash and eliminated the risk of robbery and violent aaacks

The Agents who disburse cash are exposed to poten3al increased insecurity as they begin to handle larger cash flows as MM costumers grow and need to cash out

Financial Access

Before using M-‐Pesa in Kenya, 50% of M-‐Pesa users reported they were unbanked. M-‐Pesa’s 14 million subscribers now have access to financial services.

Many s3ll lack access to interest-‐bearing account and full financial services; mobile money takes 3me to trickle down to unbanked level

Innova3on and new markets

300,000 Ghanaians purchased life insurance from the Mobile Network Operator, Tigo, to help cover expensive funeral costs

Many models have sustainability challenges; work best in sustainable ecosystems with open APIs; may be driven by P&L at MNOs

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Benefits of Non-‐Cash Payments and Reali3es

• Kenbe-‐La program in Hai3

• Update on Hai3 mobile money ecosystem

• Mercy Corps and mobile agriculture

The Beaer Than Cash (BTC) Alliance

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Program Partners (outer rim of chart) Organiza3ons commiaed to replacing cash in their programs and opera3ons with electronic payments and sharing their progress, experiences and lessons learned.

Resource Partners (inner circle of chart) Organiza3ons with a significant interest and exper3se in accelera3ng the electronifica3on of payments, especially in the developing world.

USAID Leadership in Electronic Payments

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1.  Founding resource partner of the Beaer Than Cash Alliance

2.  Funding several mission based projects throughout the world focusing on mobile and other forms of electronic payment streams

3.  Developing encouraging language in RFPs and other direc3ves that is hoped to be integrated into future domes3c and overseas grants and contracts urging the use of electronic payments

The Opportunity

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Significant interest was expressed at the Member Summit in NetHope doing more intensive work in the area of mobile money and other forms of electronic payments

NetHope members are already ac3vely u3lizing forms of electronic payments and mobile money in their programs. There should be a safe space for sharing experiences as well as frustra3ons with fellow NGOs

NetHope, through the GBI program, is ac3vely working with USAID to promote accelerated adop3on of electronic payments and development of robust electronic ecosystems. This working group can serve as an effec3ve communica3ons tool and bridge to the agency

The subject area is ripe for collabora3on and NetHope hopes to provide its members with a safe space to share ideas, hear from experts on issues of interest and develop solu3ons

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Next Steps

Please take our survey to… •  Confirm Scheduling for the WG •  Clarify Par3cipants •  Iden3fy educa3on session needs

•  Further ar3culate personal interests to electronic payments

•  Help develop deliverables and expected outcomes for the WG

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Shelley Spencer [email protected]

Hamilton McNua [email protected]

Thank You

Duncan Litunya Duncan.Litunya@sos-‐kd.org

Cameron Peake [email protected]

Payment Innovations Working Group Intro Deck

Documents

Transcript of Payment Innovations Working Group Intro Deck