11 mobile money_lessons_learned_in_emerging_markets

Mobile Money: Lessons Learned in emerging marketsWGET‐ ICT Innovation Forum

Laurence Lafont, UN Account Director, SITAAlban Luherne – Orange Money AMEA Director, OrangeThursday, April 10th

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5 WGET‐ ICT Innovation Forum 2014 – Orange Presentation

agenda

1. Orange and mobile money

2. typical projects with humanitarian organizations

3. project feedback from Mali, Niger and Madagascar

4. added value and key success factors

5. further developments


Orange in Africa, Middle East and Asia

23countries and territories

61companies

8fundations

21 000employees


focus on Orange Money

1. a mobile money account linked to an Orange phone number

2. to perform money transfers, payments, and access financial services

3. accessible in over 40k points of sale for deposit and withdrawal, and directly from any mobile phone (without data coverage) for other transactions

13 countries

10 million subscribers

2,2 billion € transactions in 2013

1.a dense mobile distribution network

2.deep customer intimacy

3.customer familiarity with e-units usage (in a prepaid mobile market)

Orange as MNO

Orange & Orange Money

1

2

3

relying on:


Orange Money range of services

Orange Moneyaccount

Orange Money transfer

Orange Moneypayment

• cash-in

• cash-out

• bank to wallet

• ATM cash-in and cash-out

• transfer to Orange customers (P2P)

• transfer to non Orange customers

• international online transfer with credit card

• intraregional transfer

• airtime top-up

• bill payment (utilities, pay TV, university fees)

• salary payment

• mobile ticketing (bus)

• online payment

• savings

• micro credit

• insurance

Orange Moneyfinancial services


the mobile money ecosystem

Orange Money

Regulatory institutions

(financial and telecom)

Partner Bank on regulatory

issues

Partners for Distribution

(telecom wholesalers,

gas companies, MFIs, etc.)

Payment partners (billers,

merchant, e-merchant)

Partners for financial products

(Banks, MFI, etc.)

Partners “large scale

projects” (WFP,

governments, etc.)


agenda







typical use case: sending money to numerous beneficiaries based in remote locations

project preparation: identification of beneficiaries, agreement on frequency,

amounts, targeted location, etc.

0

the humanitarian organization wires the involved amount to Orange in order to acquire electronic money

1

the e-money is transferred to the individual accounts of the

beneficiaries who receive it on their SIMs

2

beneficiaries can directly use the received money: withdraw cash in

Orange Money shops, pay utility bills, perform payments

3

Bamako1

2

3

a detailed reporting is provided by Orange to its partner, to monitor the

effective distribution and use of money

4


agenda







Orange Maliwith the World Food Program

Partner Project description in a nutshell

unconditional help in a context of humanitarian crisis

2012:

450 M FCFA (702 k€) distributed to 16 000 families

2013:

320 M FCFA (489 k€) distributed to 12 000 families

Key Challenges

1. inconsistences in the beneficiaries list

2. low level of equipment (close to 0) of the receiving population

3. absence of some receivers on the days where the caravan was visiting villages (for SIM card distribution and cash-out)

Solutions brought by Orange and Orange Money

1. the SIMs card were activated beforehand by Orange teams

2. a caravan was set up to visit targeted villages and proceed to SIM card distribution and beneficiaries training.

the calendar of visits was agreed between Orange, the WFP and its providers

+ : WFP goal was achieved under challenging conditions

- : mobile money usage was not guaranteed on the longer term

Geographical areas targeted

Bamako


Orange Nigerwith the World Food Program

Partner Project description in a nutshell

send subsidies to families facing the food crisis in 2012

11 200 families, receiving a monthly help of 32 500 FCFA (50€ during 5 months , may – Sept 2012)

3 regions targeted: Tahoua, Agadez and Tillabéri

Key Challenges

1. very limited mobile equipment of the beneficiaries

2. non homogeneous coverage of the targeted areas (mobile and mobile money)

3. list of recipients communicated by a WFP partner not 100% correct (5 to 10% of the beneficiaries SIM card had to be blocked by Orange afterwards)


develop a bulk Cash-In app

dedicate work force for distributing the phones, the SIM cards & provide assistance to the beneficiaries (+500FCFA credited by Orange Niger Foundation)

dedicate distribution points

dedicate hotline (to manage the PIN code and address operational issues)

involve Orange bank partners for cash management

+ : the quality of field reports was deeply appreciated by the WFP

- : the part of the program planned in Tillabéri had to be cancelled due to insufficient mobile network coverage


Niamey


Orange Madagascarschool teacher payment with UNICEF

Partner Project description in a nutshell S2 2013:

a target of 50 000 teachers to be paid every two months, spread across the country

medium amounts of 220 000 Ar (76€) per person

a pilot of 1 700 persons handled by Orange

several operators have been chosen in order to cover all beneficiaries (roll out: 2014)

Key Challenges

1. limited knowledge of the service by the targeted population

2. remote localization of the beneficiaries, sometimes outside of the existing mobile money distribution network, and in one case out of Orange mobile coverage


1. initial training of the beneficiaries was performed by Orange

2. geographical coverage:

in the north : the existing network of Orange Money PoS was sufficient

in the west:

only a few post offices delivering Orange Money services were available. Additional distributors had to be recruited

a new antenna was built to increase the mobile coverage in one of the locations


Antananarivo


agenda







mobile money strengths and key success factors

Key S

uccess f

acto

rsstr

en

gth

s

end beneficiary reach

• all transactions are automatically traced, allowing fine tuned reporting on the status of money delivery, and on its usage by recipients

geographical coverage

traceability and reporting

• with several thousands of cash-out points in each country, mobile money offers better coverage than any other payment solution

• the beneficiary of the humanitarian organization’s assistance directly receives the fund

identification

• in most cases, Orange can offer a basic training of the humanitarian organization’s staff, who should in turn take care of the recurring training of the beneficiaries

localization

training

• the choice of localizations should be discussed in order to check the coverage, both in term of mobile network and mobile money distribution network. Ad hoc solutions can by set up on a project basis

• identification of beneficiaries should be performed before hand by the humanitarian organization. The payment operator and the organization should agree on authorized identification documents (ID, beneficiary card, etc.)

• the question of equipment of the beneficiaries should be addressed. Orange insists on the importance that each and every beneficiary possess a mobile phone

equipment


agenda







further developments

available today

• distribute regular (ex : monthly) unconditional assistance to beneficiaries

• pay salaries to widespread workforce

• transfer bigger amounts in order to pay for provider services (regular payment of emergency request), even in remote locations

-> 2015

• “dedicated transfer” (the money sent can only be used for specific usages)

• continuous improvement of the quality of the distribution and of its coverage


thanks

11 mobile money_lessons_learned_in_emerging_markets

Government & Nonprofit