Deploying Mobile Payments Successfully in Uganda. A Case Study

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1 Deploying Mobile Payments Successfully in Uganda A Case Study

2 Transforming African education systems to develop young leaders and entrepreneurs Our SaaS platform helps businesses integrate mobile payments into their operations & move beyond cash

3 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

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

5 Key features Payment readiness checks

6 Key features Flexible payment approval rules

7 Key features Comment on & attach files to transfers & view approval history per transfer More: 2 factor authentication, accounting integration, notifications

8 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

9 Educate! Why Switch? Better tracking Costly field trips Centralized operations Faster recruitment Greater impact GOAL: Quadruple reach in 2 years

10 Process before switching Students, Teachers, Workers Out in Field Travel up to 8 hours 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 Travel up to 8 hours Fill out requisi:on forms in office & wait for cash Finance officer withdraws cash from bank

11 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out an online requisi:on form Program manager & finance officer approve transfer online Funds are received AGENT Can be withdrawn as cash from the nearest agent in the field Beyonic processes transfer to recipients phone

12 The Results 150 New Schools Reached In 6 weeks, up from 50 previously 20% Reduc:on in :me spent processing payments and in travel :me 66% Reduc:on in direct Payment costs 1 day Saved per fortnight

13 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

14 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

15 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?

16 Key Results 13% Meals 10% days Reconcile Wait % of transferred funds 5% Per diems < 6% SIM Cards (Once) Passport Photos (Once) Number of Days 5 Withdraw Requisi:on Transport Fees Transport 1.5 days All Costs Time

17 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.

18 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

19 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

20 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

21 Contact Kyohere Luke / Skype: luke1kyohere Dan Kleinbaum dan@beyonic.com / Skype: dan.kleinbaum Evelyn Namara enamara@beyonic.com / Skype: enamara Angelica Towne angelica@experienceeducate.org / Skype: angelica_towne