Deploying Mobile Payments Successfully in Uganda - NetHope ...

Switching barriers. • Educate! – why switch? • Educate! field operations: before & after. • Successes & Lessons learned. • The Cost of Cash case study. • Q&A.
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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  


Can  be  withdrawn   as  cash  from  the   nearest  agent  in   the  field  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