Deploying Mobile Payments Successfully in Uganda - NetHope ...

Deploying Mobile Payments Successfully in Uganda A Case Study

Transforming African education systems to develop young leaders and entrepreneurs

Our SaaS platform helps businesses integrate mobile payments into their operations & move beyond cash

Contents •  Funds-to-phones key features •  Switching barriers •  Educate! – why switch? •  Educate! field operations: before & after •  Successes & Lessons learned •  The Cost of Cash case study •  Q&A

Key features

Pay real people, not phone numbers & store payment history per contact.

Key features

Payment readiness checks

Key features

Flexible payment approval rules

Key features

Comment on & attach files to transfers & view approval history per transfer

More: 2 factor authentication, accounting integration, notifications

Switching Barriers •  Carrier engagement: red-tape & scale •  Commonly thought of as only beneficiary payments •  Current systems are siloed & sometimes unreliable •  Custom solutions are costly •  Liquidity concerns •  Cash works … sort of •  Cross network payments, Unregistered users, tracking, statements, expiring payments

Educate! – Why Switch? §  §  §  §  § 

Better tracking Costly field trips Centralized operations Faster recruitment Greater impact

GOAL: Quadruple reach in 2 years  

Process before switching

Students,  Teachers,     Workers  Out  in  Field  

Travel  up  to  8   hours  

Travel  up  to  8   hours  

Fill  out  requisi:on   forms  in  office  &   wait  for  cash  

§  People leave the field every two weeks §  Significant time and costs (travel, lining up for cash) §  Risk of handling cash §  Delays due to human error, bank liquidity §  Per diem, meals and accommodation costs

Finance  officer   withdraws  cash  from   bank  

Process after switching

$  

Students,  Teachers,     Workers  Out  in  Field   §  Make faster payments §  Make emergency payments §  Requisition process staggered throughout week §  SIGNIFICANT savings in time and money §  People stay in the field

Fill  out  an  online   requisi:on  form  

Program  manager  &     finance  officer  approve   transfer  online  

Funds  are   received  

AGENT  

Can  be  withdrawn   as  cash  from  the   nearest  agent  in   the  field  

Beyonic  processes   transfer  to  recipients   phone  

The Results

150 20%

Reduc:on  in  :me     spent  processing  payments     and  in  travel  :me  

66% 1 day

New  Schools  Reached   In  6  weeks,     up  from  50  previously    

Reduc:on  in  direct   Payment  costs  

Saved     per  fortnight  

Lessons Learned •  Identify compatible payment types for mobile money •  Pilot first, then scale up •  The Switch requires process adjustments: §  Development of electronic requisition forms processed through the plaform §  Supply, registration and verification of phone numbers §  Calculation and pre-payment of mobile money withdrawal costs §  Electronic approval procedures

•  Adjustments improve money tracking: Eliminate ghost beneficiaries, paper-based signatures, forgery. •  Engage & train all stakeholders – managers, recipients

The ‘Cost of Cash’ Case Study •  Why §  Understand processes, needs & benefits §  Tease out real costs, before and after §  Understand and address user concerns

•  How? §  Weekly interviews with all stakeholders during normal cashbased operations §  Weekly interviews after switching to mobile §  Reviewed books of accounting from previous recruitments §  Mapped processes before and after

The ‘Cost of Cash’ Case Study •  Sample questions §  Do you currently use mobile money? Which network? Do you trust it? §  What are your current cost centers? Can you quantify them? Transport, bank trips, meals, security? §  What’s your day like? How do you spend your time? §  How much of that is because of cash? §  How would it change if you didn’t handle cash? §  What would a cashless operation look like? §  What are your concerns?

Key Results 11 days  

13%  

Reconcile   Meals  

10   Wait  

Per  diems  

< 6%   SIM Cards (Once)

5%       Transport  

Passport Photos (Once)

Fees  

Number  of  Days  

%  of  transferred  funds  

10%  

Withdraw   Requisi:on   5  

Transport  

1.5 days   All  

Costs

Time

Key Concerns •  Liquidity §  Educate didn’t have any cases where people were not able to cash out when needed §  Beyonic is working with customers to build a crowd-sourced, shared database of MM-ready service providers, MM agents, transport providers, hotels, restaurants – as more transactions remain in MM form, liquidity becomes less of an issue §  Beyonic is working with customers and recipients to understand and predict mobile money usage patterns. We know where the recipients are, and can work with MNOs and agents to increase predictability and plan for cash-outs.

Key Concerns •  Mobile money downtime §  Less than 1% of transactions affected by down-time §  Payment systems have become more reliable over the last 2 years §  MNOs have invested significantly in system availability and agent network

Key Findings and Testimonies •  20% of recipients didn’t use mobile money before, but use it now, even for personal use •  Getting paid via mobile money will increase uptake of the service •  Savings more than cover the additional withdrawal fees •  Aligning internal processes avoids delays in payments •  “Going to the office and money is not there is not an issue” •  “I can withdraw it anywhere around me and withdraw just what I need” •  “There are so many things I could do with the extra time – schedule meetings, teach, spend more time with students”

Prevailing Pain-points •  Mobile money registration process takes long §  Onboarding 300+ people requires ample planning §  Beyonic prepares lead times & schedules to help customers with planning §  Beyonic facilitates registration with contacts at the mobile money network providers §  The technology shows you who is registered & who isn’t

Contact Kyohere Luke

[email protected] +1-646-321-2691 / Skype: luke1kyohere

Dan Kleinbaum

[email protected] +1-734-417-7254 / Skype: dan.kleinbaum

Evelyn Namara

[email protected] +256-792-790-183 / Skype: enamara

Angelica Towne

angelic[email protected] +1-3478698243 / Skype: angelica_towne