Plugging into Mobile Money Platforms

Posted by EKStallings on Jan 13, 2012
Author: 
Hausman, Vicky, Matt Shakhovskoy, Yana Watson, Lorenzo Bernasconi
Publication Type: 
Report/White paper
Publication Date: 
Jan 2012
Publisher/Journal: 
Dalberg
Publication language: 
English
Abstract: 

In 2010, the Bill & Melinda Gates Foundation, in collaboration with USAID, launched the Haiti Mobile Money Initiative (HMMI), an innovative program aimed at catalyzing the mobile money market in Haiti. As part of this program Dalberg was engaged to periodically conduct research into the evolution of the mobile money ecosystem. The purpose of this research is to support the development of the mobile money market in Haiti through: i) conducting new primary research; ii) codifying learnings and insights; iii) applying learnings and perspectives from other markets. It is envisaged that this research will support dialogue, learning and reflection in support of a growing, sustainable and financially inclusive mobile money market in Haiti.

Non-governmental organizations (NGOs) are increasingly distributing money to individuals through cash-for-work schemes and grant programs. This often involves reaching individuals who are transient, dispersed, or isolated geographically. The NGOs’ challenge is to figure out how to deliver this money quickly and safely at the lowest possible cost. In Haiti, these “cash transfers” have been an essential part of the relief effort since the earthquake of January 2010. With the growth of Haiti’s mobile money (MM) industry, NGOs operating there are now delivering cash transfers to citizens both physically and electronically. NGOs have primarily used MM to support the implementation of livelihood programs focused on food security and housing; a smaller share have adopted it for cash-for-work programs. As Haiti moves from relief to ongoing reconstruction and development, donors are making more money available for long-term programs using cash grant transfers.

Our analysis of several NGO programs in Haiti finds that though MM is faster and safer than traditional physical cash delivery or voucher programs, it is not necessarily more cost-efficient. As NGOs refine program design, it is expected that speed, safety, and broader program outcomes such as financial inclusiveness will improve. Similarly, with time, we expect a drop in costs associated with ecosystem development, e.g. training beneficiaries and supporting agents. This will further improve the cost effectiveness of MM compared to alternatives.

Countries: 
Citation: 
Hausman, Vicky, Matt Shakhovskoy, Yana Watson, Lorenzo Bernasconi, "Plugging into Mobile Money Platforms." Dalberg, 2012.
Featured?: 
No
Plugging into Mobile Money Platforms data sheet 1030 Views
Author: 
Hausman, Vicky, Matt Shakhovskoy, Yana Watson, Lorenzo Bernasconi
Publication Type: 
Report/White paper
Publication Date: 
Jan 2012
Publisher/Journal: 
Dalberg
Publication language: 
English
Abstract: 

In 2010, the Bill & Melinda Gates Foundation, in collaboration with USAID, launched the Haiti Mobile Money Initiative (HMMI), an innovative program aimed at catalyzing the mobile money market in Haiti. As part of this program Dalberg was engaged to periodically conduct research into the evolution of the mobile money ecosystem. The purpose of this research is to support the development of the mobile money market in Haiti through: i) conducting new primary research; ii) codifying learnings and insights; iii) applying learnings and perspectives from other markets. It is envisaged that this research will support dialogue, learning and reflection in support of a growing, sustainable and financially inclusive mobile money market in Haiti.

Non-governmental organizations (NGOs) are increasingly distributing money to individuals through cash-for-work schemes and grant programs. This often involves reaching individuals who are transient, dispersed, or isolated geographically. The NGOs’ challenge is to figure out how to deliver this money quickly and safely at the lowest possible cost. In Haiti, these “cash transfers” have been an essential part of the relief effort since the earthquake of January 2010. With the growth of Haiti’s mobile money (MM) industry, NGOs operating there are now delivering cash transfers to citizens both physically and electronically. NGOs have primarily used MM to support the implementation of livelihood programs focused on food security and housing; a smaller share have adopted it for cash-for-work programs. As Haiti moves from relief to ongoing reconstruction and development, donors are making more money available for long-term programs using cash grant transfers.

Our analysis of several NGO programs in Haiti finds that though MM is faster and safer than traditional physical cash delivery or voucher programs, it is not necessarily more cost-efficient. As NGOs refine program design, it is expected that speed, safety, and broader program outcomes such as financial inclusiveness will improve. Similarly, with time, we expect a drop in costs associated with ecosystem development, e.g. training beneficiaries and supporting agents. This will further improve the cost effectiveness of MM compared to alternatives.

Countries: 
Citation: 
Hausman, Vicky, Matt Shakhovskoy, Yana Watson, Lorenzo Bernasconi, "Plugging into Mobile Money Platforms." Dalberg, 2012.
Featured?: 
No

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