The Rise of Mobile Money in Afghanistan Enriching Afghan lives - - PowerPoint PPT Presentation

The Rise of Mobile Money in Afghanistan

Enriching Afghan lives through M-Paisa

Feb 6, 2013

Global Landscape for Money Mobile

Middle East Syria South Asia Pakistan Bangladesh Central Asia Tajikistan Afghanistan Kyrgyzstan Canada West Africa Côte d’Ivoire Sénégal Mali Burkina Faso Central Africa

• Dem. Rep. of the

Congo

• Defining Success is Key

Not all markets are alike and act the same Market needs are different Consumer adoption rates vary Services must be complementary

M-Paisa

Defining Success - Deployments

Deployment Use Case P2P Salary Payments Bill Payments

Value Proposition

Safety Convenience Timely On time In full Convenience On time

M-Paisa

General Drivers and Key Obstacles

• High cost of access to banking services/high transaction

costs

• Presence of banks mainly in big cities leading to difficulty
• f access
• f access
• Pressing need from all levels
• f government to immediately

reduce corruption

• Difficult geographical terrain
• Limited transport services
• Domination of mobile phones
• Very low fixed line penetration
• Geography more conductive to development of mobile

networks

Presence of Rural Community Popularity of Mobile Phone Corruption Poor Transport Infrastructure

Salary Payments

• Transparency
• Security

Peer to Peer Transfer

• Convenience.
• Safety

MFI Payments

• Increase reach
• Improve efficiencies

M-Paisa Service Features

Merchant Payments

• Convenience
• Security

Airtime Purchase

• Convenience
• Security

international Remittance Western Union

M-Paisa What is Mobile Money Service?

Mobile Money Service: The ability to use a handheld device connected to a mobile

network operator, for the purposes of sending or receiving currency from one person or business to another person or business, that is connected to an Agents/Banks.

Mobile Phone User Agents/Banks

Mobile Money Service

Employers

• Efficiency: Central system to check M-Paisa account anytime
• Lower Cash Handling Costs: Save on administration, transport and material costs
• Transparency: All transactions are logged and fully traceable
• Convenience: Easy to disburse salary/stipends by preparing an excel sheet
• Security: All transactions are encrypted and application uses security certificate for data protection

M-Paisa Benefits

Employees

• Convenience: Accessibility to M-Paisa’s agent network including banks throughout Afghanistan.

employees can receive their salaries & send funds anytime, anywhere via their mobile phone.

• Security: Funds are PIN (Personal ID Number) protected in the m-wallet.
• Simplicity: Easy to use menu system built into the SIM card and an interactive voice response system

(IVR) that can process all transactions without having to read a menu.

On Time. In Full. Never Lost.

M-Paisa Payment Objectives

1. Safety and Convenience: Make payments to employees using mobile phone technology vs. cash and from one central location. 2. Speed and Efficiency: To Ensure 100% of payments are made on time, to the correct person. 3. Cost Effectiveness: Minimize Cost of Handling Cash 4. Innovation: Provide employees with alternate methods for sending money 4. Innovation: Provide employees with alternate methods for sending money home vs. leaving the job site.

• Transparent. Verified. On Time.

M-Paisa Finance dept transfers the

1 2 3

Organization deposits cash into the M-Paisa’s Bank Account Employers Utility Account Working Account (MMF) The e-Money is transferred from Working to Utility Account.

M-Paisa Payment Overview

e-Money into the Working Account

4 5

Customers receive the payment into their M-Paisa Account. The payment is scheduled & Customers paid.

6

Customers can then :

• withdraw cash at an agent
• Send money
• Buy Airtime
• Pay a bill

Send Money Withdraw Cash Enter Agent No: 200011 Enter Amount: 5000

M-Paisa Payment Withdrawals

Steps: Customer Withdrawals using M-Paisa Menu

Customer Handset

Withdraw 5000 AFA from 200011

OK Enter PIN: OK 1234 OK OK OK

Customer

M-PAISA provides an Interactive Voice Response (IVR) system to customers who are not able to use the SMS menu option. This is an important feature in Afghanistan where 70% of the population is illiterate and over 850,000 are disabled.

M-Paisa Interactive Voice Response (IVR)

The Customer can call 111 free of charge and the system will provide verbal instruction in Dari, Pashto and English language on how to utilize services.

M-Paisa Salary Payments for the ANP– Letter from MoI

To: Roshan Attention of M-Paisa Date: 28/09/1389 (19 Dec 2010) Salary disbursement through M-Paisa: This system has provided considerable facilities and convenience for the personnel particularly those getting paid through M-Paisa. The officers that are being paid through M-Paisa are satisfied with this system due to the following reasons:

• Salaries are paid through M-Paisa on timely basis without undue
• Salaries are paid through M-Paisa on timely basis without undue

delays

• Time is not wasted while preparing for disbursing salaries
• ANPs do not have to face security threats while receiving their

salaries

• ANPs do not need to travel long distances to receive their salaries

thus saving the transportation cost

• ANPs can conveniently send money to their families through this

system Regards, Col Bariyali Sadat Finance and budget department

M-Paisa Letter from Central Asia Development Group

Salary Payments Bank Partners Bill Payments Loan Repayments

M-Paisa Partners & Projects

• M-Paisa

From Roshan