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.
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
Agent
Source: Sarah Rotman, “Branchless Banking 101” March 2012 Bank
3. Roles of an Agent
1) Promoting the product
2) Educating and Registering Costumers
3) Facilitating Transactions
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. 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. Agent Business Case
Being an agent can help small merchants generate more
revenue for their local business
Source: CGAP: “Agent Management Toolkit” 2011
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. 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. 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. 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
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. 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
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. 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 Agent
Sub Agent
Agent
m-$ m-$ User
m-$
1 2 1
2
18. Blockhaus Vendor Profile:
Lundy Myslande
Sex / Age:
• Female / NA
Name 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. Centre Ville Vendor Profile:
Alexis Moise
Sex / Age:
• Male / 50
Name 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
products
Average 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. Average Monthly T-Cash Sales in HTG
(Dec ‘11 – Sep ’12)
300,000
250,000 248,056
188,164 Avg = 190,621 (~$4,766 USD) 199,026
200,000
150,000
127,240
100,000
50,000
-
Bocozelle Blockhaus Centre Ville Mac Donald
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. Time to Conduct T-Cash Transactions
(Start vs. End of Program)