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- 1. The Better Than Cash Initiative Better Than Cash A closer look at the Better Than Cash Alliance and USAID’s commitment to e-payments Using Electronic Payments to Advance USAID’s Mission Controllers Conference December 15,12011
- 2. What Could Be Better Than Cash?
- 3. It can lack transparency
- 4. It can be costly for operations
- 5. It can be dangerous
- 6. It can hamper access to financial services Beneficiaries
- 7. 7
- 8. Five Key Benefits of Electronic Payments The transition away from cash towards the use of electronic payments has the potential to… − Create cost savings − Foster transparency − Increase security and speed of payment delivery − Encourage financial inclusion − Catalyze innovative business models and economic growth 8
- 9. Transparency Argentina decreased government payments leakages with its shift to electronic payment cards. Those who admit taking bribes dropped by 92%
- 10. Cost Savings When Brazil disbursed Bolsa Familia grants through electronic benefit cards, they cut administrative costs from 14.7% to 2.6% Photograph: Vanderlei Almeida/AFP/Getty Image
- 11. Security After the 2010 earthquake in Haiti, incidents of theft of cash transfers fell by more than 50%, due to the use of mobile money
- 12. Financial Inclusion Women who have access to a savings account are able to make more productive investments and increase their level of income in just 6 months
- 13. Innovation Over 20 financial institutions have linked to M-Pesa 13
- 14. Who can become a member? As a member of the Better Than Cash Alliance, an organization must adopt the core principles and commit to transitioning away from cash. • Private Sector • Donor Organizations • NGOs/Development Community • Government In return for their commitments, members may receive • International Recognition for leadership in this space • Potential access to technical assistance • Knowledge and information sharing resources 14
- 15. What is USAID doing about it? USAID is committed to the core principles of the Better Than Cash Alliance, and is implementing internal reforms to help accelerate the transition from cash to electronic payments across the globe • USAID has developed encouraging language • USAID is beginning to develop ”cash” baselines • USAID is supporting mobile money and financial inclusion programs in select countries 15
- 16. Is that it? USAID is also developing an array of resources and tools that can be used to support their implementing partners’ analysis and decision to utilize electronic payments • PEB • The Standards and Practices for Electronic and Mobile Payments Report • An electronic payment type analysis tool • Cost savings analysis • Continued development of case studies and use cases for electronic payments in the field • Knowledge sharing activities 16
- 17. Q & A Break 17
- 18. Now on to the comic strip! 18
Editor's Notes
- We begin by saying that the overwhelming majority of the world still operates in cash, and up until recently it was optimal for folks to do so. What’s the problem with Cash? Cash comes with a (hidden) cost, especially to poor people. When social payments are paid in cash, the poor generally have to travel for hours and stand in long queues to receive those payments. They have nowhere to keep these funds safe – they often have to keep it on their person or “hidden” in mud jars or under their mattresses….<studies show….stats>. Now with new payment technologies becoming relevant in emerging markets, it would be unwise for us to not consider the alternatives.
- Cash comes with a cost… A lack of transparency with cash leads to bribes and skimming off the top.
- It is also costly for companies to work in cash. Employee’s time for organizing the cash, the cost of securing it, transporting it, even printing it! Its costly for recipients as well, who often times have to wait in long lines to receive the cash, or travel long distances.
- We all know carrying cash can be costly. Having lots of cash on your person makes you more susceptible to theft
- When folks keep cash, they are not thinking about using a bank or other financial institution to safely store savings, etc… Cash economies do not incentivize people to consider financial services as a way to help them step out of the poverty cycle
- This page runs through the BTC alliance… The BTC Alliance is a coalition of corporations, international development organizations, and governments committed to promoting cash-lite societies across the globe. The BTC Alliance promotes the use of electronic payments as a replacement to physical cash in order to catalyze financial inclusion, transparency, and efficiencies in payment and revenue streams in the developing world.
- Brief descriptions of each… Some stats to compliment
- What does it mean to become a member? Who can become a member? What are the benefits
- Examples of USAID’s internal reforms
- Examples of USAID’s efforts to create a wealth of knowledge and community of learning around this subject to support a solid base of know-how in anticipation of the newly developed procurement language.