M-PESA For NGOs

What is available in M-PESA? Cash In Cash Out Over 31,000 agent outlets countrywide Person 2 Person Transfer KShs. 1.1 trillion transferred since launch (Sept 2010) 20M trx per month totaling over Ks. 50B Airtime Top-Up Flexi value anywhere you are Bill Payment Over 700 Pay Bill Partners ATM Withdrawals 24/7 access Over 700 ATM’s connected countrywide Social/Salary Payments Over 200 bulk payment Partnerships Partnerships with Oxfam, Concern worldwide and other NGO’s

Why would an NGO use M-PESA? Payment of relief funds to beneficiaries Deposit funds directly Payment of salaries and allowances to field staff Send funds directly Use the M-PESA I&M VISA card to send funds of up to Ks. 500,000 Cash In Cash Out Services Over 30,000 agent outlets countrywide All leading Banks Over 700 ATMs are connected to M-PESA Receiving donations M-PESA paybill accounts allows the organization to receive funds 500,000 trx valued at Ks. 150M raised via M-PESA “Kenya for Kenyan’s” campaign Poverty eradication M-PESA can be used as a savings tool to assist beneficiaries store their funds safely

M-PESA PAYBILL An organization can use the PAYBILL service to receive funds directly to their M-PESA accounts.

This is a service that allows registered M-PESA users to make donations through their M-PESA enabled Safaricom lines.

Benefits of the Paybill Service

Customer convenience

Real time collections – records updated in seconds

Cost reduction – Reduced staff & other admin costs

Better resource utilization

Low cash risk

Integration of the M-PESA system with the

business’ payment systems

Compatibility to handle large volumes

Bulk Payment Processing

How does the money move from Cash into Electronic money to a recipient’s mobile phone?

The organization will deposit money into the M-PESA holding account

The E-money will be made available to the organization via their M-PESA bulk payment account

The organization will then load the amounts and mobile phone numbers to be paid.

The recipients will receive e-money directly into their mobile phones.

The organization fills in the amount and telephone numbers of the beneficiaries on provided template (csv format)

Bulk Payment Processing

The recipients access cash through M-PESA agents or ATM partners

X-DQ117 Confirmed

You have received Ks 500

from 300100 THE FUND on

13/07/11 at 16.00 PM. New

M-PESA Balance is Ks1475

Bulk Payment Reporting The business can monitor amounts sent online and can also have this report in either PDF or Excel

M-PESA Agent Outlets Cash In Cash Out Services Over 31,486 agent outlets countrywide. In the North eastern Province, there are over 350 agent outlets while there are over 200 agent outlets in upper rift .

M-PESA Benefits FACT •Only 21% of Kenyans have bank accounts • 87% have access to a mobile phone • The gap is only widening

Benefits to Recipients

Fast – Instant notification

Safe - PIN

Affordable

Convenient - over 31,000 agents

Don’t need bank a/c (free to register)

Gives beneficiary Benefits to the Organization

Convenience for the company and recipient

Speed of disbursements

− automated system of updating records

Reduced cost e.g. staff costs, banking costs

Better resource utilization

Lower risks of fraud and/or theft

Economic empowerment of the business community around the aid area

Challenges faced

1. Network coverage

2. Mobile phone penetration

3. Literacy levels

4. M-PESA agency network

5. M-PESA registration of beneficiaries without

national IDs

6. Ensuring funds reach the intended

recipient/accountability