presentation
TRANSCRIPT
Our early experience in Mexicoy p
9th University Meets Microfinance WorkshopUniversidad de Salamanca, May 31, 2013, y ,
Presented by: Francisco Escamilla
An emerging payments distortion, excluding micro and small businesses unable to accept card paymentsbusinesses unable to accept card payments
Government subsidies
S l iSalaries
M lMeal vouchers Groceries
vouchers
How to solve this exclusion problem….?
• Government subsidies;• Salaries;• Meal vouchers;• Groceries vouchers.
• Groceries stores,• Food,• Drugstores,
Stationery stores• Large retailers
Medi m si e
• Penalties forlow transaction
l• Stationery stores,• Hardware stores,• Clothing,• Others…
• Medium size businesses
volumes;• Expensive fees
A payments model
New technology andbusiness model
required8 million ofmicro businessesexcluded.
A payments modelowned by traditional banks,not designed for micro and small businesses
q
small businesses.
New technology enabling the integration of micro businesses into the e payments systembusinesses into the e-payments system
• Solutions based on mobile phone;• Highly affordable to micro businesses;Highly affordable to micro businesses;• Suitable to the conditions and characteristics
of micro businesses.
The challenge:• To define new business models and
integrate an ecosystem of actors.
• Turning down the barriers to the use of card in micro businesses.
Building new business models and ecosystems g y
Micro finance institutions asinstitutions as main platforms of activation of
micro businesses.
• Adding new services to be offered by micro and small businesses (i.e. bill payments andmobile phone top ups)businesses.
Att ti t
mobile phone top ups).
• Making affordable the use of technology.Attracting new actors:
Telecom operators;Banks;
Government programs;D l t b k
• Adjust prices and fees to the characteristics of micro businesses.
Development banks.
Turning down the barriers to the use of cards in microbusinessesbusinesses.
Size of the businessWhen paying with a card in….
Large retailer “The usual place with“The usual place withg The usual place withthe expected device”
Confidence
The usual place withan unexpected device”
Curiosity
Mi b i “The unusual place with “The unusual placeMicro business The unusual place withan unexpected device”
Untrustworthy
The unusual place with the expected device”
From curiosity to doubtStrong communicationrequired
Familiarity levelwith payment device
- +
y
To compensate low familiaritywith elements like signaling,security and rewards to the use.
Final messageg
Technology and the democratization of its applications can be helpful in thedesign of solutions to rebalance the availability of tools and opportunities infavor of micro and small businesses.
The big players on the payments system are already sensible to theopportunities that the micro and small businesses represent (the nextbilli )billion).
It is the role of the new generation of professionals entering microfinance tod i d t d t t i ith l iti d iti i ldesign products and strategies with value propositions and a positive socialsense.
