Mobile Money Agent Networks  Examining the NGO Sector’s Role
What is an Agent? A person or business that is contracted to facilitate transactions for users. The most important of     ...
Roles of an Agent1) Promoting the product                               2) Educating and Registering Costumers3) Facilitat...
Mobile Money Agent Hierarchy                    (illustrative)         “Super Agents”              Financial Institutions ...
Who can be an Agent?National Post Office (Super Agent)        Aggregator networks (Agent) Your local bookstore (sub-agent)...
Agent Business Case      Being an agent can help small merchants generate more                  revenue for their local bu...
Agent Network Development:The Mercy Corps Haiti Experience
Table of Contents• Background & Context   Funding   Financial Inclusion   Unique Operating Environment• Haiti Case Stud...
Background & Context• Funding – Sizable flows of donor funds  in response to the earthquake; flexible  funding for innovat...
Background & Context• Unique Operating Environment –  Logistical/implementation challenges on   the ground created an opp...
Haiti Case Study• Strategy – a) Focus activities in regions  that received large influxes of IDPs  post-earthquake; b) Pro...
Haiti Case Study    Mercy Corps ERP      Operations
Haiti Case Study• Approach  Which partners?     Trilogy/Voila     Proactive relationship development  Which programs? ...
Haiti Case Study• Kenbe-La Program Overview  – Recurring conditional cash transfer program to    alleviate food security c...
Haiti Case Study                  Bocozelle                                Blockhaus              Centre VilleMac Donald
Haiti Case Study• Execution  Mobilization & Sensitization     • Airtime purchase/transfer as “the bridge” to mobile-$  M...
Haiti Case Study  m-$                  1. Cash-out                        2. Change in Liquidity                          ...
Blockhaus Vendor Profile:       Lundy MyslandeSex / Age: • Female / NAName of Business / Launch Date: • Rosie Boutique / 2...
Centre Ville Vendor Profile:         Alexis MoiseSex / Age: • Male / 50Name of Business / Launch Date: • Betabara Store / ...
Average Monthly T-Cash Sales in HTG         (Dec ‘11 – Sep ’12)300,000250,000                                             ...
Perceived Disruption of Cash Sales          due to T-Cash                             Yes         No      100%            ...
Time to Conduct T-Cash Transactions      (Start vs. End of Program)
Sense of Preparedness to be a Mobile    Money Agent Post Program
Haiti Case Study• Lessons Learned  – Agent Mobilization & Training  – Integrating Mobile Money  – External Partnership Man...
Haiti Case Study• Potential NGO Role(s)  – Financier  – Acquirer  – Trainer  – Service Promoter
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Mobile Money Agent Network Development in Haiti

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The Payment Innovations working group welcomed Nick Lesher of Open Revolution (www.openrev.com) to speak with Cameron Peake of Mercy Corps (www.mercycorps.org) on their experiences with mobile money agent network development in Haiti. We examine how NGOs can play a role in the development of healthy and sustainable mobile money agent networks.

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  • Highlight difference between an agent and merchant agents…
  • Be honest and clear regarding how much actual income diversification
  • Mobile Money Agent Network Development in Haiti

    1. 1. Mobile Money Agent Networks Examining the NGO Sector’s Role
    2. 2. What is an Agent? A person or business that is contracted to facilitate transactions for users. The most important of these are cash-in and cash-out (deposits/withdrawals). Agents bridge the gap between traditional brick and mortar bank branches and potential down market clients. MNO Client AgentSource: Sarah Rotman, “Branchless Banking 101” March 2012 Bank
    3. 3. Roles of an Agent1) Promoting the product 2) Educating and Registering Costumers3) Facilitating Transactions
    4. 4. Mobile Money Agent Hierarchy (illustrative) “Super Agents” Financial Institutions (e.g. MFIs) Large Merchants / “Agents” Specialized Companies“Sub Agents” Local Retailers / Small Vendors
    5. 5. Who can be an Agent?National Post Office (Super Agent) Aggregator networks (Agent) Your local bookstore (sub-agent) Your local convenience store (sub agent)
    6. 6. Agent Business Case Being an agent can help small merchants generate more revenue for their local businessSource: CGAP: “Agent Management Toolkit” 2011
    7. 7. Agent Network Development:The Mercy Corps Haiti Experience
    8. 8. Table of Contents• Background & Context  Funding  Financial Inclusion  Unique Operating Environment• Haiti Case Study  Strategy  Approach  Execution  Lessons Learned  Potential Roles for NGOs
    9. 9. Background & Context• Funding – Sizable flows of donor funds in response to the earthquake; flexible funding for innovation• Financial Inclusion – Core mission objective for Mercy Corps: enhancing market-driven financial inclusion among underserved communities
    10. 10. Background & Context• Unique Operating Environment – Logistical/implementation challenges on the ground created an opportunity to explore alternative delivery channels Distinct context for mobile money integration : massive earthquake, no prior country office presence, staff “churn”, etc.
    11. 11. Haiti Case Study• Strategy – a) Focus activities in regions that received large influxes of IDPs post-earthquake; b) Provide financial assistance via alternative delivery mechanisms c) flexible funding and a TA grant from USAID allowed us more room to experiment
    12. 12. Haiti Case Study Mercy Corps ERP Operations
    13. 13. Haiti Case Study• Approach Which partners?  Trilogy/Voila  Proactive relationship development Which programs?  Cash-for-work  Unconditional cash transfers  Food security (Kenbe-La) Which participants?  Selecting beneficiaries and merchants  Aligning program objectives with funding parameters
    14. 14. Haiti Case Study• Kenbe-La Program Overview – Recurring conditional cash transfer program to alleviate food security concerns among vulnerable HHs – 9 month program that targeted 5 districts in St. Marc and 2 surrounding towns, – Engaged ~7,000 beneficiaries and ~100 merchants; monthly disbursements = 1,618 HTG (~40 USD) – Program parameters allowed for incubation of merchants from acceptance points to agents
    15. 15. Haiti Case Study Bocozelle Blockhaus Centre VilleMac Donald
    16. 16. Haiti Case Study• Execution Mobilization & Sensitization • Airtime purchase/transfer as “the bridge” to mobile-$ Mobile Money Training • Pictograms and simulation Disbursements • Who hits send, to whom, when, and for how much? Mobile Money Agent Training • Interactive exercises, explaining “buckets of money”
    17. 17. Haiti Case Study m-$ 1. Cash-out 2. Change in Liquidity m-$Sub Agent Sub Agent • e-wallet balance m-$ User increases m-$ 2 1 • Cash on-hand decreases 3. Sub-Agent Rebalances 4. Additional Cash-outs m-$ m-$ m-$ Sub AgentSub Agent Agent m-$ m-$ User m-$ 1 2 1 2
    18. 18. Blockhaus Vendor Profile: Lundy MyslandeSex / Age: • Female / NAName of Business / Launch Date: • Rosie Boutique / 2009 (3 yrs)Source of Start-up Capital & Plans for Business: • Source: Personal savings then small loan to grow her inventory • Plans: Increase her inventory; diversify products to include “brand name” items; purchase refrigerator to sell meats (poultry, beef)Average cash sales pre-Kenbe La program (monthly): • ~$1,925 USD (~77,000 HTG)Average T-Cash sales from Kenbe La clients (monthly): • ~$2,900 USD (~116,050 HTG)Average number of Kenbe La clients (monthly): • 70
    19. 19. Centre Ville Vendor Profile: Alexis MoiseSex / Age: • Male / 50Name of Business / Launch Date: • Betabara Store / 2004 (8 yrs)Source of Start-up Capital & Plans for Business: • Source: Personal savings • Plans: Increase the size of the store and offer an even wider selection of productsAverage cash sales pre-Kenbe La program (monthly): • ~$6,750 USD (~270,000 HTG)Average T-Cash sales from Kenbe La clients (monthly): • ~$18,420 USD (~737,035 HTG)Average number of Kenbe La clients (monthly): • 302
    20. 20. Average Monthly T-Cash Sales in HTG (Dec ‘11 – Sep ’12)300,000250,000 248,056 188,164 Avg = 190,621 (~$4,766 USD) 199,026200,000150,000 127,240100,000 50,000 - Bocozelle Blockhaus Centre Ville Mac Donald
    21. 21. Perceived Disruption of Cash Sales due to T-Cash Yes No 100% 100% 91% 83% 82% 17% 18% 9% 0% 0%Bocozelle Blockhaus Centre Ville Mac Donald Overall
    22. 22. Time to Conduct T-Cash Transactions (Start vs. End of Program)
    23. 23. Sense of Preparedness to be a Mobile Money Agent Post Program
    24. 24. Haiti Case Study• Lessons Learned – Agent Mobilization & Training – Integrating Mobile Money – External Partnership Management
    25. 25. Haiti Case Study• Potential NGO Role(s) – Financier – Acquirer – Trainer – Service Promoter

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