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What  Could  be  Be.er  Than  Cash?  Electronic  payments  and  the  shi2  away  from  cash  

in  emerging  markets    

February  5,  2013  Dar  Es  Salaam,  Tanzania  

Introductions

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Chrissy Martin @chrissiy

Hamilton McNutt @hamiltonmcnutt

Nandini Harihareswara @nandinish

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1.  Introductions

2.  What is the Better Than Cash Alliance?

3.  Mobile Network Operators Presentation and Q and A

4.  Coffee Break

5.  Pathfinder Presentation

6.  Break Out Session

7.  Lunch

9:00 - 9:10

10:45 - 11:00

Agenda

9:15 - 9:35

9:40 - 10:40

11:05- 11:15

11:15 - 12:15

12:15 - 1:15

Workshop Objectives

This workshop will help participants:

1.  Explore the growing interest in transitioning away from cash in USAID programs and elsewhere

2.  Develop a more robust understanding of the electronic payment solutions available within the Tanzanian context

3.  Examine the prerequisite conditions needed for a successful transition towards the use of electronic payments, focusing on mobile money

4.  Discuss and listen (from USAID Mission staff and Implementing Partners) the challenges, opportunities, and additional questions around this topic.

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1. Why are we here?

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It can lack transparency

It can be costly

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It can be dangerous

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It can hamper access to financial services

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It can also be the ONLY option

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Electronic Payments

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2. What is the Better Than Cash Alliance?

Website: http://www.youtube.com/watch?v=LEfb17Idcnc&feature=player_embedded

The Better Than Cash Theory of Change

Large Payment Streams

Incentives that encourage positive

regulatory environments

Increased adoption of mobile and

electronic payments

Increased market opportunities and

competition for service providers

Transition aw

ay from cash

Increased ability for the poor to have access to

financial services (financial inclusion)

Donors

Development Community

Governments

Private Sector

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3. How is USAID participating?

USAID’s Commitment to Better Than Cash

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Hortatory (encouraging) procurement

language requesting USAID

partners to conduct a suitability

analysis of the use of e-payments in

programs.

Direct Funding to the Better than Cash

Alliance

Advocacy and Leadership

Encourage the transition to electronic payments (including mobile money) in all USAID programs and operations, where

appropriate.

Developing a system to track

the usage of electronic

payments, where possible.

Incorporating e-payment usage into

project design, procurement

language with USAID partners,

and existing measurement

systems.

Developing analytical tools and

trainings to assist

partners in determining appropriate

payment platforms.

Knowledge Sharing

USAID Tools and Reference Materials

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Standards and Practices for Electronic and Mobile

Payments Reference Report

Financial Documentation guidance

Costs vs. Benefits analysis

Workshops

Continued development of business case studies

Online courses (coming)

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4. Why mobile money?

Tanzania’s Mobile Industry by the numbers

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Source: World Bank/GSMA 2011

Mobile Phones vs. Bank Accounts

20 Source: World Bank Databank

0

5000000

10000000

15000000

20000000

25000000

30000000

35000000

2004 2005 2006 2007 2008 2009 2010 2011

Mobile Telephone vs. Bank Penetration in Tanzania

Depositers with Commercial Banks Mobile Cellular Subscriptions

21.5 million

Tanzania: Bank Branches vs. Mobile Money Agents

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0

5000

10000

15000

20000

25000

30000

35000

2012

ATMs

Bank Branches

Mobile Money Agents

32,000 Interviews*

594* World Bank

Source: World Bank 2010/TDY Interviews 2012

*Projected bank branch growth

* Estimation combines agents who serve more than one MNO

1608* World Bank

Mobile Money Products Available in Tanzania?

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5. Appendix: Electronic Payment Successes

Photograph: Vanderlei Almeida/AFP/Getty Images