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Page 1: 05.25 m m_presentation

Digital Development at USAIDMobile Money

May 2011

Page 2: 05.25 m m_presentation

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Why do we care?

• Reduce opportunities for corruption• Track illicit financial behavior• Close the gap on financial services access

97%

50%

100%

10%

Finland

KenyaThe

Philippines

South Africa

Colombia

Mexico

% m

obile

pho

ne p

enet

ratio

n

% Banked people % Mobile Penetration

1

2

3

Page 3: 05.25 m m_presentation

• M-PESA launched in 2007 when only 23% of Kenyans had a bank account but 80% access to a mobile phone.

• The service has grown into one of the most successful in the world, with more than 19 million customers and over 23,000 agents.

• Success has yet to be replicated elsewhere but we remain optimistic about reaching scale in

– Ghana– Indonesia– Philippines– Afghanistan– Malawi– Haiti and others

Replicating mPesa

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What needs to happen?

Going BIG in select countries

1. Offering risk capital for product design & development

3. Strengthening, enabling regulatory environments for competitive business and consumer protection

5. Maximizing usage of emerging payments capabilities

• Our own operations• Our programs (serving

farmers, schools, etc) • Host-country payments of

salaries, pensions, etc

• Expanding broadband connectivity

4

Multi-sector collaboration

1. Garnering commitments to reduce reliance on cash-based means of disbursement

• Governments & donors

3. Identifying critical implementation • i.e. fast moving consumer

goods cos

5. Promoting impact and opportunities

• Media & researchers

• Anticipating frontier issues (re inter-operability, new technology disruptions, etc)

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Bank

Clie

nt

Client opens bank account(accessible by mobile phone)

Agent opens bank account (accessible by mobile phone)

Cash-in

Electronic value sent

Agent account debited

Client account credited

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Age

nt

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