Payment Innovations Project. CALP Working Group. September 1, 2016

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1 Payment Innovations Project CALP Working Group September 1, 2016

2 Agenda Background Market Assessment Service Provider Selec7on Use Case Example Key Resources

3 Background USAID Procurement Executive Bulletin No Guidance for Electronic Payments under USAID awards: The contractor agrees to use an electronic payment system for any payments under this award to beneficiaries, subcontractors, or grants under contracts, where applicable. E-payment systems must be the default method of payment under all awards

4 Agenda Background Market Assessment Service Provider Selec7on Use Case Example Key Resources

5 Market Assessment Transition from Cash to Electronic Payments Toolkit: Step 4 Market Assessment Mobile Financial Services Market Viability Tool

6 Transition from Cash to Electronic Payments Toolkit STEP 4 Market Assessment STEP 5 Selecting a Service Provider STEP 9 The Grand Plan and Rollout STEP 10 Scale Up and Out STEP 6 Process Integration STEP 8 Preparing Recipients and Testing the System SECTION ONE: Introducing Electronic Payments SECTION TWO: Analysis STEP 7 Staff Endorsement, Training, and Internal Trial STEP 1 Exploring Mobile Money and Electronic Payments STEP 2 Show Me the Money! STEP 3 Costs of Payments: Cash Versus Electronic Payments SECTION THREE: Implementation

7 Digital Payment Key Terms Financial Institution Digital Payments Service Provider Mobile/Digital Financial Service Provider Mobile Network Operators (MNO) Third Party Providers Point of Sale Terminal (POS) Mobile Network Coverage Active Mobile Money User Mobile Money Agent Know Your Customer (KYC) Regulations GSMA Glossary: AFI MFS Terms: %20Terminology.pdf.

9 MNOs, Card issuer/ acquirer, third party service providers Banks/MFIs Regulators Agent/Merchant Supply Demand Implemen7ng Partners Agribusiness/ MSMEs Personal Consumers

10 Step 4: Market Assessment Tool

11 Key Market Factors for Assessment Financial Sector (Traditional & Branchless) Debit and Prepaid Cards Mobile Network & Mobile Money Sector Third Party Technology Providers Government Regulation Consumer Behavior & Demographics

12 Market Viability Tool - Review TOOL DEMO: hip://solu7onscenter.nethope.org/blog/ view/the-electronic-payment-push Some key limita3ons! Sta7c Na7onal Availability & robustness of data Industry is dynamic

13 National vs. Local Market Assessment Mzuzu VS.

14 Key Resources For Assessments Financial Sector World Bank Findex: World Economic Forum Global Competitiveness Report: Country Central Bank Website: Reserve Bank of Malawi: Cards Sector World Bank Findex: IMF Financial Access Survey: Mobile Network and Mobile Money Sector IMF Financial Access Survey: GSMA Mobile Money Tracker: GSMA Mobile Development Intelligence:

15 Key Resources For Assessments Third Party Providers GSMA Mobile Money Tracker: Technology Hubs i.e. Development Innovations Government Regulations Reserve Bank of Malawi: CGAP Publications: Alliance for Financial Inclusion: Consumer Behavior and Demographics UN Statistics Division: World Bank Data Base: World Bank Responsible Finance:

16 Agenda Background Market Assessment Service Provider Selec7on Use Case Example Key Resources

17 Selection of Digital Bulk Payment Products & Providers Person to Person (P2P) Business/Donor to Person (B2P/D2P) NGO Sending money to friends and family Loan disbursements, per diems, cash transfers, salaries, etc

18 Types of Digital Payment Service Providers Banks/MFIs Mobile Network Operators Service Provider Third-Party Service Providers

19 Aggregators I have a Telecash mobile wallet $ NGO $ $ $ Third Party Aggregator $ I have Smartcash Account Card $ I have an Ecocash mobile wallet

20 P2P Mobile Money Product Example Payer Recipient

21 D2P Bulk Payment MM Product Example

22 Remember the Recipient User Experience Too! Mobile Money Advice Cash In received for $10.00 from Current Balance: $10.00 Payer Recipient

23 Service Provider Assessment Tool - Review

24 Creating a Strong Request for Quotation & Negotiations General Information Product Details Customer Service Distribution Network Data Privacy/Protection

25 Key Product Considerations: General Information Market position Network Infrastructure & Coverage Example contracts Other NGO customers Local or International Company (Geo Code considerations)

26 Key Product Considerations: Product Details Payer Backend user experience Payment process flow and user authorities Pricing Transaction Statements Recipient How to register for a e-wallet/account Transaction limits (maximum they can receive) User experience when funds are received

27 Key Product Considerations: Customer Service Payer Training for staff is offered Service Level Agreement Examples Dedicated customer service agent Recipient Training for recipients offered Customer service options & hotlines Troubleshooting responsibility

28 Key Product Considerations: Distribution Network For Both Payer and Recipient Coverage area and distribution of agents Number of active agents (specifically in the region you plan to work) Cash in/cash out liquidity management details

29 Key Product Considerations: Data Privacy/Protection For Both Payer and Recipient Service providers own controls against internal fraud Recipient data storage Usage of recipient data

30 Agenda Background Market Assessment Service Provider Selec7on Use Case Example Key Resources

31 Service Provider Assessment ACF Example

Building NGO/Service Provider business partnerships Open communica7ons & robust MOUs/SLAs Manage expecta7ons Make sure the right people are par7cipa7ng in the right conversa7ons Despite respec7ve

32 Building NGO/Service Provider business partnerships Open communica7ons & robust MOUs/SLAs Manage expecta7ons Make sure the right people are par7cipa7ng in the right conversa7ons Despite respec7ve missions, both can work towards the same goal of bringing services to recipients Recognize that both sides bring unique and valuable contribu7ons Recognize the industry is new, so everyone is learning as they go Check out relevant ELAN resources here: hip:// and ELAN April NewsleIer: hip://

33 Agenda Background Market Assessment Service Provider Selec7on Use Case Example Key Resources

34 Key Resources USAID Procurement Bulle3n Making the Journey from Cash to Electronic Payments: A Toolkit of Guidance and Resources for Development Organiza3ons (See the Annex with Links to Specific Tools) Mobile Financial Services Market Viability Tool hip://solu7onscenter.nethope.org/blog/view/the-electronic-payment-push hip://solu7onscenter.nethope.org/blog/view/the-electronic-payment-push ACF Tool for Digital Payment Service Provider Selec3on hip://solu7onscenter.nethope.org/blog/view/mobile-money-bulk-payment-products-capturingthe-market-opportunity-of-glob hip://solu7onscenter.nethope.org/blog/view/new-tool-to-iden7fy-digital-bulk-payment-serviceproviders AFI MFS Terms: hip:// %20Terminology.pdf

35 Contact Us Marcella Willis NetHope & Strategic Impact Advisors NetHope Payment Innovations Project

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The Triple Win: Save the Children and EcoCash Using Mobile Payments for Cash Transfers in Zimbabwe Today s Speakers Angeline Itai Matereke, Manager Emergencies, Save the Children, Zimbabwe Natalie Jabangwe-Morris,