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M-Pesa for INGOs
The proposition for humanitarian and
international organisations
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Contents
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What is M-Pesa?
What are the Use Cases for INGOs?
Case Study: Partners in Health, Lesotho
Other Programme Objectives
Disbursements and Collections
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2,000,000,000 people In the world have no access to formal financial services (World Bank 2015)
The Opportunity…
>6,700,000,000 Mobile subscriptions (Ericsson 2014)
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M-Pesa enables users to send & receive money via mobile phones
City worker Rural M-Pesa agent
For example, migrant workers use the service to send money home to family in rural areas, who can withdraw the cash from a neighbourhood M-Pesa agent.
How does M-Pesa work?
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Account checked
for sufficient funds Sender types in
phone number of recipient, amount to be sent and PIN
Sender notified of
completion & new
balance
Transaction
performed
1. 2. 3.
Recipient receives
cash & notification
of new balance
Recipient notified
of money received
Money sent
immediately
to recipient
Type in outlet number,
amount to withdraw
and PIN
To cash-out, Recipient goes to
outlet
1. 2.
4. 3.
Else, store value, transact later.
Receiver can either withdraw the cash or store value in the mobile wallet for future use.
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M-Pesa is simple to use and accessible to all
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Anyone with a basic phone can use it
Uses SMS, no data capability required
No need for a bank account
Top-up and withdraw cash via agent network
Pay as you go; no periodic fees
Operated with secret PIN
Money remains secure even if phone is lost
…and it is very use to use ! M-Pesa requires just a basic GSM connection…
India Launch April 2013
Vodafone has 25.3m active M-Pesa customers, >300k agents
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Romania Launch 31st March 2014
Egypt Launch June 2013
Kenya Launch March 2007
Tanzania Launch April 2008
Mozambique Launch May 2013
Lesotho Launch July 2013
Active customers have done a transaction in
the preceding 30 days as at March 2016
Albania Launch May 2015
Democratic Republic of Congo Launch November 2012
Ghana Launch August 2015
International Money Transfers
Vodafone Group is rolling out its international money transfer (IMT) service across our 10 M-Pesa markets. IMT is
an integral offering in the M-Pesa portfolio as it helps bring key consumer benefits.
M-Pesa advantages
1. Reduced cost of transacting
2. Easy access to agent outlets
3. Fast and simple
4. Secure transactions
M-Pesa Partners
Our partners include IMT hub operators specialised in specific
corridors, as well as traditional MTOs, new entrants and online
players, and other mobile money operators.
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Contents
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What is M-Pesa?
What are the Use Cases for INGOs?
Case Study: Partners in Health, Lesotho
Other Programme Objectives
Disbursements and Collections
How can M-Pesa help INGOs deliver better?
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Eliminate Security
Threat Lower Costs
Enhance Operational
Efficiency
Employee/Beneficiary
Satisfaction & Trust Digitise Records
INGOs
Programme Objectives
• Cash Programming
• Access to Finance, Healthcare,
Energy, Water, etc.
Operational Efficiency
• Staff wage and petty cash payments
• Loan and/or fee collections
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Contents
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What is M-Pesa?
What are the Use Cases for INGOs?
Case Study: Partners in Health, Lesotho
Other Programme Objectives
Disbursements and Collections
Organizations can disburse salaries, wages, allowances, loans, promotions and more to their dispersed
workforce or customers via M-Pesa, increasing transparency, efficiency and eliminating risk.
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Business Disbursements to Customers (B2C)
Vodafone M-Pesa
Registers recipients on M-Pesa
Performs KYC/Due Diligence
Sets up a business account
Provides customer service
Business
Uploads recipient data via the
business’ M-Pesa portal
Inputs amounts to be disbursed
Pays Vodafone a transaction fee
Case Study
G4S uses M-Pesa in the DRC to pay salaries to their guard force that is located in remote locations across every province in the country.
“Before it was a difficult, lengthy process. We couldn’t guarantee when the guy
would get his money with the difficulties of transport, etc.”
- Jan Mortiner, Operations Director, G4S DRC
Governments and NGOs can disburse subsidies and benefits to their citizens and beneficiaries and can choose to
limit the use of funds to maximise effectiveness.
Restricted transfers for aid effectiveness
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In Kakuma and Dadaab (Kenya)
>100,000 households
>1,000 Merchants (60% of total refugees)
Reaches ~0.5mn refugees
50% of food ration via Bamba Chakula
Typical benefit is $25-$50 per household
per month
Customers can pay bills (ex. utilities) and make purchases remotely, without having to travel and wait in line
with cash. Cashless collections increase efficiency and eliminate cash risk for the business.
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Business Collections from Customers (C2B)
Vodafone M-Pesa
Registers customers on M-Pesa
Performs KYC/Due Diligence
Provides collection account
Offers Paybill menu to customers
Provides customer service
Business
Integrates with M-Pesa
Enable customers to pay by M-Pesa
View collections via web interface
Pays Vodafone a transaction fee
Case Studies
Over 2,000 businesses, utilities, insurance companies, banks, public services (ex. train tickets, revenue authorities) and schools collect payments via M-Pesa.
Contents
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What is M-Pesa?
What are the Use Cases for INGOs?
Case Study: Partners in Health, Lesotho
Other Programme Objectives
Disbursements and Collections
Job Creation >300k direct agents
Mobile money unlocks access to products & services…
Healthcare
Energy
Water & Sanitation
Market Information for
Agriculture
Disaster Relief
Access to Finance Remittance, savings, loans
€ £ $
Education
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M-Pesa offers credit and savings access via Bank partners
Data as of March 30, 2016 for FY’16.
£57.8mn Savings mobilised
in Kenya
£53.7mn Loans taken in Kenya
2.25% Non-performing
loans in Kenya
5.5mn Active credit &
savings customers
in Kenya &
Tanzania
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M-Pesa works with over 30 MFIs in Africa and India
M-Pesa Digitises MFI operations Example of companies
Loan disbursements and collections
Group savings and loans
Credit scoring support
Smart asset financing
Insurance premium collection, claims pay-outs
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M-Pesa and IoT enable flexible financing for assets and un-
manned pay as you go community infrastructure
Description Example of companies
SIM embedded in devices to enable remote
monitoring, cost effective maintenance
Instalment payments for devices paid by
households or small businesses via M-Pesa
Pre-payments for use of energy or water, etc.,
paid via M-Pesa
Enables cost-effective maintenance
System turns off if the customer is delinquent,
unlocks for good when all instalment payments
are completed
Contents
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What is M-Pesa?
What are the Use Cases for INGOs?
Case Study: Partners in Health, Lesotho
Other Programme Objectives
Disbursements and Collections
Partners in Health: operations enabled by M-Pesa
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PIH manages the public health facilities on behalf
of the Ministry of Health across the country.
Key focus is multi-drug resistant TB, HIV
treatment and basic primary/secondary care.
M-Pesa enables PIH’s rural clinic network to
operate viably, without them having to drive cash
out or contract G4S to do so.
Pay over 4,500 community health workers
Description
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67 clinics and 8
hospitals across
the country
Partners in Health reach in Lesotho
