An briefing an introduction to Payment Innovations and the working group associated with it.

1. Photo
Credit:
Gates
Founda3on
Payment
Innova3ons
Working
Group
Briefing
January
20th,
2012
1

2. 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)
2

3. Electronic
Payments
Mobile
Payments
Smart
Cards
ACH/EFT
Payments
disbursed
and
Payments
made
and
received
Direct
deposits,
wire
transfers,
received
using
mobile
phones
using
cards
and
ACH
debits
3

4. Mobile
Money
Models
4

5. Benefits
of
Non-­‐Cash
Payments
and
Reali3es
Benefits
Example
Challenges
Cost
Savings
MACE
Foods
in
Kenya
eliminated
all
losses
Start-­‐up
costs
can
be
higher
in
nascent
MM
due
to
theY
by
moving
from
cash
payments
ecosystems-­‐
Dalberg
report
shows
35%
to
M-­‐Pesa
mobile
payments
saving
over
$
more
costs
for
NGO
programming
in
Hai3
56,592
USD.
Transparency
Afghanistan
police
officers
whose
salaries
Challenges
with
partner
engagement,
were
paid
with
mobile
money
rather
than
especially
when
middle
men
are
deprived
cash
received
30%
more
in
salaries
with
the
of
income
elimina3on
of
salary
lost
to
skimming.
Security
Women
in
Hai3
who
received
payments
to
The
Agents
who
disburse
cash
are
exposed
their
mobile
phones,
felt
safer
than
when
to
poten3al
increased
insecurity
as
they
they
were
paid
in
cash
and
eliminated
the
risk
begin
to
handle
larger
cash
flows
as
MM
of
robbery
and
violent
aaacks
costumers
grow
and
need
to
cash
out
Financial
Before
using
M-­‐Pesa
in
Kenya,
50%
of
M-­‐Pesa
Many
s3ll
lack
access
to
interest-­‐bearing
Access
users
reported
they
were
unbanked.
M-­‐ account
and
full
financial
services;
mobile
Pesa’s
14
million
subscribers
now
have
access
money
takes
3me
to
trickle
down
to
to
financial
services.
unbanked
level
Innova3on
300,000
Ghanaians
purchased
life
insurance
Many
models
have
sustainability
and
new
from
the
Mobile
Network
Operator,
Tigo,
to
challenges;
work
best
in
sustainable
markets
help
cover
expensive
funeral
costs
ecosystems
with
open
APIs;
may
be
driven
5
by
P&L
at
MNOs

6.
• Kenbe-­‐La
program
in
Hai3
• Update
on
Hai3
mobile
money
ecosystem
• Mercy
Corps
and
mobile
agriculture

7. 7

8. 8

9. 9

10. 10

11. The
Beaer
Than
Cash
(BTC)
Alliance
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.
11

12. USAID
Leadership
in
Electronic
Payments
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
12

13. The
Opportunity
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
13

14. 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
14

15. Thank
You
Cameron
Peake
cpeake@dc.mercycorps.org
Duncan
Litunya
Duncan.Litunya@sos-­‐kd.org
Shelley
Spencer
shelley.spencer@nethope.org
Hamilton
McNua
hamilton.mcnua@nethope.org
15