Today's Mobile Minute brings you news about the six organizations that won social networking grants from infoDev, the way mobile advertising is used in Europe, the launch of 4G networks in Africa, accusations of rigging in India's bandwidth auctions, and a CGAP series that de-hypes mobile banking with actual data.
InfoDev announced the winners of its social networking grants for organizations working in Africa and Asia. The winners were Akirachix (Kenya), MoMo Kampala (Uganda), COSTECH (Tanzania), Mobile Monday (Mozambique), CRC Topica (Vietnam), and Young Innovations Pvt. Ltd. (Nepal). The winners received $35,000 U.S. as part of the Creating Sustainable Businesses in the Knowledge Economy program.
The Mobile Minute is here to bring you coverage on the rise of smartphone sales around the world, a crop insurance plan in Kenya that uses mobiles to process claims and distribute money, the effect of the 2010 U.S. elections on PBS' mobile web and app usage rates, a pilot in Zambia that uses SMS to rapidly transmit HIV test results between rural clinics and hospitals, and mGive's new mobile donation options.
In this two-part series, MobileActive.org explores how mobile money services can support health care in developing countries. In part one, we described the key ways in which mobile money services can be adopted by the health sector.
At the primary level of care, subscription-based mobile payment services can create two-way links between patients and health care providers, as summarized here.
Patients can pay service providers directly for health care services delivered.
Service providers can use mobile transfer platforms to reward patients with monetary or airtime incentives for treatment compliance.
At the district, regional, and national levels, governments and organizations can improve management of funds and introduce better checks and balances by using mobile money platforms. Some uses include:
Mobile phones are being tried and tested in myriad ways in health care. They are used for data collection and disease surveillance, for ensuring treatment compliance, for managing health information systems and point-of-care support, for health promotion and disease prevention, and for delivering emergency medical services. Clearly, m-health, as this growing field is dubbed, is here to stay.
At the same time, achieving scale and sustainability in most m-health projects has been a challenge. One of the key aspects of beginning to think about ways to integrate m-health into health systems in a sustainable way is to establish financial systems to pay for health services and to ensure financial accountability within programs.
Today's Mobile Minute brings you the latest mobile news. Mobile Commons helps people find voting stations in the U.S. via SMS, Nokia pushes for rural users, NPR's mobile services win them an Online Journalism Award, and seven out of ten people store sensitive data on their mobile phones – without security measures.
Today is election day in the United States, so if you want to find out where your nearest polling station is, check out the Mobile Polling Place Locator by Mobile Commons. Text WHERE (for English instructions) or DONDE (for Spanish instructions) to 30644. You'll be prompted to enter your home address, and then be directed to your local polling center.
The New York Times reported on Nokia's Ovi Life Tools program, which uses basic text messages to transmit market and agricultural data to rural mobile owners. The program has already been successful in India, and now Nokia is gearing up to launch a similar program in Nigeria.
The BBC reported on a study from security firm Juniper Networks that found bad news for users worried about mobile security: "In its research covering 6,000 participants spread over 16 countries, Juniper found that 61% of all reported smartphone infections were spyware, capable of monitoring communication from the device. A further 17% were text message Trojans that charge fees to a device's account holder."
[Mobile Minute Disclaimer: The Mobile Minute is a quick round-up of interesting stories that have come across our RSS and Twitter feeds to keep you informed of the rapid pace of innovation. Read them and enjoy them, but know that we have not deeply investigated these news items. For more in-depth information about the ever-growing field of mobile tech for social change, check out our blog posts, white papers and research, how-tos, and case studies.
Is mobile money living up to the hype? Does it provide more and better financial services for low-income and poor people? Our great friends over at CGAP, the definitive source on credible research on mobile money and branchless banking, have gathered data on 16,000 mobile money customers in seven coutries to understand better how far branchless banking is reaching the unbanked. The results are published in a new CGAP paper.
As fas as we know, this is the first time such an extensive data set has been collected. It sought to answer three questions: Is mobile banking reaching poor customers? Is it more affordable than traditional banking? And lastly, do customers get what they want?
The CGAP researchers looked at 18 branchless banking providers with more than 50 million customers in 10 countries. What did they find?
The Mobile Minute has info on social networking via mobiles, interactive mobile lesson plans in South Africa, a new ITU study that estimates more than 90% of the world's population has access to mobile networks, the Red Cross' work to battle a cholera outbreak in Haiti with SMS health updates, and the launch of a mobile money transfer pilot in the Philippines.
In today's Mobile Minute: The UN released a report on mobile penetration around the world and how mobiles can be used to fight poverty, Business Insider charted U.S. texting habits by age group, an Islamist group in Somalia banned mobile money transfers, Zimbabwe's first mobile money program prepares to launch, and the research group Akamai released data on the growth of the mobile web around the world.
Check out the newest MobileActive.org case study on a pilot mobile layaway service in Kenya for small-scale farmers.
The service is referred to as Tone Kwa Tone Pata Pump, which is Swahili for Drop by Drop Gets the Pump.
The mobile layaway service allows farmers to make incremental payments over a mobile phone by leveraging M-PESA, a mobile banking platform that is popular in Kenya and elsewhere. Farmers work toward the purchase of KickStart irrigation pumps, which allow farmers to irrigate up to two acres of land.
In September 2010, KickStart launched a pilot mobile layaway service to help small-scale farmers purchase irrigation pumps. KickStart is a non-profit organization that develops and markets new technologies to help local entrepreneurs establish new small businesses.The mobile layaway service allows farmers to make incremental payments over a mobile phone by leveraging M-PESA, a mobile banking platform that is popular in Kenya and elsewhere.
The mobile layaway service is referred to as Tone Kwa Tone Pata Pump, which is Swahili for "Drop by Drop Gets the Pump". Though only nine customers have signed up for the service since the pilot was launched one month ago, the experience has provided insight on future approaches for an expanded mobile layaway service.
The goal of the KickStart mobile layaway service is to provide a safe, secure, and convenient savings mechanism for small-scale farmers to put away money for an irrigation pump.
Brief description of the project:
The mobile layaway service allows small-scale farmers to make incremental payments over a mobile phone by leveraging M-PESA, a mobile banking platform that is popular in Kenya and elsewhere. Farmers work toward the purchase of KickStart irrigation pumps.
Target audience:
The target audience of the KickStart mobile layaway service is small-scale famers who wish to purchase an irrigation pump but have difficulty in gathering the total purchase cost at one time. Farmers must also have access to a mobile phone and be registered M-PESA users.
Length of Project (in months) :
5
Status:
Ongoing
Anticipated launch date:
What worked well? :
The mobile layaway service is successful in it’s approach: it offers a formalized service by building upon something done informally and it leverages a trusted brand that users have access to and are comfortable with.
What did not work? What were the challenges?:
Though the USB modem and text message interface alleviates the need to administer data via a handset, the process still requires significant manual input. For the pilot, received payments come in automatically from the M-PESA admin tool, but on the back-end, an Excel spreadsheet is used to track customers and payments.
We examine the growth of mobile phone technology over the past decade and consider its potential impacts upon quality of life in low-income countries, with a particular focus on sub-Saharan Africa. We first provide an overview of the patterns and determinants of mobile phone coverage in sub-Saharan Africa before describing the characteristics of primary and secondary mobile phone adopters on the continent.
We then discuss the channels through which mobile phone technology can impact development outcomes, both as a positive externality of the communication sector and as part of mobile phone-based development projects, and analyze existing evidence.
While current research suggests that mobile phone coverage and adoption have had positive impacts on agricultural and labor market efficiency and welfare in certain countries, empirical evidence is still somewhat limited. In addition, mobile phone technology cannot serve as the “silver bullet” for development in sub-Saharan Africa. Careful impact evaluations of mobile phone development projects are required to better understand their impacts upon economic and social outcomes, and mobile phone technology must work in partnership with other public good provision and investment.
KickStart’s mission is to help millions of people out of poverty. The organization promotes sustainable economic growth and employment creation in Kenya and other countries. It develops and promotes technologies that can be used by dynamic entrepreneurs to establish and run profitable small scale enterprises.
In this comprehensive analysis, CGAP assessed whether branchless banking or mobile money services are more cost effective or cheaper for low income people than formal banking. The authors, McKay and Pickens, compared pricing of 16 leading branchless banking services across eight ways that customers use branchless banking. They subsequently compared the pricing of these services against 10 formal banks and other informal money transfers options.
The eight use cases refer to: 1) sending money transfer, 2) receiving money transfer, 3)short-term safekeeping, 4) medium term savings, 5) bill payments, 6) high usage, 7) m-PESA customer, and 8) kenya bank customer.
The results say that branchless banking is 19% cheaper than banks, and have a lower transaction value. Additionally, branchless banking is 54% cheaper than informal options formoney transfer.They also discuss in detail how pricing influences customer usage.
Today's Mobile Minute is focused on mobile money. We've got news about Bharti's financial services in India, Rwanda's new mobile banking guidelines, Digicel's plan for mobile financial services in Haiti, ICT growth from 1998 to 2009, and the popularity of native apps on smartphones.
In Rwanda, mobile banking is becoming a more secure option as "The Central Bank has set guidelines for mobile phone payment systems that will cater for safety, integrity, efficiency and reliability according to a notice on its website," reported The New Times. (via Textually)
Digicel, a Caribbean telecom, announced they will launch a mobile banking pilot project in Haiti, starting this October. The pilot will allow users to transfer funds and give and receive cash via mobiles.
ICT4Dblog charted how ICTs have grown around the world, ranking mobile, Internet, and broadband growth over an 11-year period. The site then looked at how these numbers show the digital gap between rich and poor countries, and then reported on: "digital lag: the time gap between a given average ICT penetration level in the poorest countries, and the year that was achieved in the richest countries. Current digital lag is just under 10 years for mobile, and something like 14-15 years for Internet. For broadband, it’s just over 10 years but the figures are so low that this may not be meaningful."
A report from Zokem, a Finnish mobile analytics company, found that smartphone users' activity on native apps accounts for 50% of mobile Internet traffic. The large study took data from 10,000 smartphone users in 16 countries to arrive at their conclusions.
[Mobile Minute Disclaimer: The Mobile Minute is a quick round-up of interesting stories that have come across our RSS and Twitter feeds to keep you informed of the rapid pace of innovation. Read them and enjoy them, but know that we have not deeply investigated these news items. For more in-depth information about the ever-growing field of mobile tech for social change, check out our blog posts, white papers and research,how-tos, and case studies.]
The Mobile Minute is back with the latest mobile news. McKesson Foundation's president is interviewed about its $1.5 million grant for m-health research, Zimbabwe begins to roll out per-second mobile billing, NTEN shows non-profits in the United States seven ways to incorporate mobile donations, Apple publishes its guidelines for submissions to the app store, and Twitter releases new figures about their mobile access numbers.
The electronic delivery of cash can be achieved through a variety of mechanisms - debit card, smart card or cellphone, using a range of financial infrastructure -banks, automated teller machines (ATMs) and point-of-sale (POS) devices. This brief outlines recent experiences from across Africa, with a focus on Kenya, Malawi, Namibia and Swaziland.
The benefits of electronic delivery systems to both governments and recipients are well known in terms of improved cost efficiency and flexibility of access, so this brief emphasises issues that are relevant to private sector partners, who are vital to the introduction of such systems.
The rapid penetration of cellphones in Africa, including both signal coverage and handset ownership, makes distribution of cash transfers by cellphone an increasingly viable proposition, as shown in Kenya through the M-PESA mechanism. Additionally the availability of cellphone signal has been instrumental in facilitating use of ofline smart cards for electronic delivery of cash transfers in Malawi and Namibia.
The growth of financial infrastructure and opportunity for banks to increase their market share has increased the favourability with which banks view potential participation in government-to-person cash transfers.
Evidence from Malawi and Swaziland shows that cash transfer recipients who are provided with bank accounts to receive their cash transfers tend to then use them to save money and to receive person-to-person transfers (e.g. remittances) – thus making further use of financial infrastructure and services. In terms of scalability of electronic delivery systems, the time- and cost-intensive nature of the payment mechanism setup relative to the operating costs means that the incentive for private sector partners to engage is much greater for long-term programmes than short-term pilots.
Undertaking cash transfer programme registration formalities concurrently with private sector partner registration procedures (in terms of opening bank accounts or distributing SIM cards or smart cards) thus makes sense, wherever possible. It is also imperative that contractual obligations for the government implementer and private sector partner be agreed upfront, smart cards) thus makes sense, wherever possible. It is also imperative that contractual obligations for the government implementer and private sector partner be agreed upfront, desmart cards) thus makes sense, wherever possible. It is also imperative that contractual obligations for the government implementer and private sector partner be agreed upfront, defining respective roles and responsibilities, together with a grievance procedure in case of non-compliance.
As well as the growing base of evidence from projects and programmes in Kenya, Malawi, Namibia and Swaziland, other countries that have expressed interest in the use of electronic delivery systems include Ghana, Lesotho and Mozambique.
M‐PESA is a small‐value electronic payment and store of value system that is accessible from ordinary mobile phones. It has seen exceptional growth since its introduction by mobile phone operator Safaricom in Kenya in March 2007: it has already been adopted by 9 million customers (corresponding to 40% of Kenya’s adult population) and processes more transactions domestically than Western Union does globally. M‐PESA’s market success can be interpreted as the interplay of three sets of factors: (i) pre‐existing country conditions that made Kenya a conducive environment for a successful mobile money deployment; (ii) a clever service design that facilitated rapid adoption and early capturing of network effects; and (iii) a business execution strategy that helped M‐PESA rapidly reach a critical mass of customers, thereby avoiding the adverse chicken‐and‐egg (two‐sided market) problems that afflict new payment systems.
Megan G. Plyler, Sherri Haas, and Geetha Nagarajan
Publication Type:
Report/White paper
Publication Date:
1 Jun 2010
Abstract:
M-PESA an agent-assisted, mobile phone-based, person-to-person payment and money transfer system, was launched in Kenya on March 6, 2007. This study is the first of its kind to explore the economic effects of M-PESA in Kenya at the community level.
The findings from the first stage of the study indicate that M-PESA affects the economic outcomes of community members, both users and non-users of M-PESA, through direct and externality effects, and identify 11 economic effects within the broad categories of local economic expansion, security, capital accumulation and business environment after 2.5 years of M-PESA’s use in these communities. The research also shows that effects were not visible in all the study communities and among all the population segments within the communities; they tended to be influenced by gender and geographic location of the communities.
Also, the effects were not always perceived as mutually exclusive, but as interwoven with each other to produce overall community effects.
The Mobile Minute is back with the latest mobile news. What's happening today? FrontlineSMS now supports MMS via email and offers scheduling features, an infographic breaks down the overlap between social networks and mobile phones, non-profits are ramping up their use of mobile giving campaigns, and Google introduces a new computer-to-phone voice service.
The Mobile Minute is back with a video explaining the M-PESA mobile money service, news about maternal health insurance via mobiles, an app that helps users determine if a hybrid or plug-in car will be useful to their lives, a report on why you might want to turn off the geo-tagging system on your mobile, and FailFaire in The New York Times.
Today's Mobile Minute features links on fundraising with QR codes, a survey report on how audiences get information, a breakdown of how journalism is changing due to mobile phones, the announcement of a clearer definition of mobile broadband, an open-source, solar-powered mobile network, and five cross-platform mobile development tools.
Today's Mobile Minute covers the unfolding BBM security controversy, Ushahidi's new Crowdmap online platform, a roundup of mobile apps for the disabled, a break down of what mobile ownership numbers actually mean, and the take-away on mobile remittances from the Tech@State conference.
Today's Mobile Minute brings you coverage about contactless mobile payments in the U.S., a report on trends in technology and health, research that covers how mobiles can help economic development in Africa and the challenges that are hindering that development, a data gathering platform from Nokia that is now open-source, and the announcement of the mHealth Summit's keynote speaker.
Governments make regular payments to at least 170 million poor people worldwide—far more than the 99 million or so who have active microloans. In this Focus Note, we look at government-to-person (G2P) payments, which include social transfers as well as wage and pension payments. With appropriate experimentation, these payments have the potential to become a vehicle for extending financial inclusion and improving the welfare of poor people. Yet in most countries, far fewer than one-quarter of G2P payments to the poor land in a financially inclusive account—i.e., one that enables recipients to store G2P payments and other funds until they wish to access them and make or receive payments from other people in the financial system, and one that is accessible, in terms of cost and distance.
The first section of this Focus Note reviews the state of G2P payments today, including how we arrived at a figure of at least 170 million poor G2P recipients and a country example (Colombia) showing that several types of G2P payments reach the poor. The second section looks at the early experience with providing financial services to poor G2P recipients. We find that 45 percent of G2P programs launched in the past 10 years use an electronic payment mechanism that creates a foundation on which a financially inclusive account can be offered. Examples where this is already being done (Brazil, India, and South Africa) are discussed. The third section deals with five common concerns of policy makers and social development program managers. Recommendations to government, the financial industry, and donors are summarized in the conclusion.
We've got news on Saudi Arabia's and the United Arab Emirates' moves to ban BlackBerry, the release of the TakingITMobile mobile youth activism survey, a review of livestreaming services for mobiles, USAID's mobile financial services risk matrix, and a report that reveals the niche uses for location-based mobile services.