CASE EXAMPLE—INCENTIVE PRIZE COMPETITION
HAITI MOBILE MONEY INITIATIVE
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in poverty, whose situation was exacerbated by the devastation of the earthquake.They thought to leverage the potential of lower cost mobile technologies toprovide financial services rather than wait to rebuild more expensive physicalbank branches. In the context of post-earthquake Haiti, for both USAID andthe Gates Foundation, a prize was preferable to a traditional grant. From theirexperience, they knew that awarding money to ambitious proposals often entaileda lengthy process of proposal submission and review. Instead, they decided toutilize an Incentive Prize Competition to encourage multiple players to build therequired infrastructure and prove they could successfully engage people on theground. The Incentive Prize Competition model also has the benefit of engagingmultiple stakeholders simultaneously while paying only for success. Competitiveforces in the telecommunications and banking industries could be harnessedto focus on solving a specific problem, thereby transforming otherwise high-risk investments into potentially high-reward technology innovations. Withthe participation of the public and NGO sector, private companies could beincentivized to put up large amounts of capital toward developing commercialservices that had far reaching social benefit.The Haiti Mobile Money Initiative (HMMI) was established in June 2010 forthe purpose of expanding access to financial services, especially where bankbranches were nonexistent or had been destroyed. Funded by the GatesFoundation, HMMI is a $10M prize fund created to incent development andscaling of mobile banking services in Haiti. HMMI offered rewards for thefirst two companies to deploy a qualifying service and all companies thatsubsequently contribute to the scaling of the Haitian mobile money marketto 1M and 5M transactions. Up to $5M in USAID grants are also availableto provide technical assistance in overcoming obstacles encounteredin deploying the service. Haiti Integrated Financing for Value Chains andEnterprises (HIFIVE), funded by USAID and staffed by World Council of CreditUnions (WOCCU) was working with the financial sector to develop mobilemoney prior to HMMI and was a good choice to administer HMMI locally.HIFIVE’s role as an administrator includes conducting verification of theprize claims and awarding the technical assistance grants. HIFIVE also worksclosely with the mobile money, banking and microfinance sectors to ensure aconducive environment for innovative financial services.By October 2011, $4M in prize money had already been awarded, as Digicel-Scotiabank successfully launched Tcho Tcho Mobile, the first mobile moneycontribution to the total, up to100,000 transactions.
$2 per transaction will beawarded in proportion tocontribution to the totalfrom 100,000<x≤ 1,000,000transactions.
$0.80 per transaction willbe awarded in proportionto contribution to the totalbetween 1,000,000<x≤5,000,000 transactions.
Full mobile wallet services (ableto deposit, withdraw, transfer, andmaintain a balance)
Electronic value exchangeable forcash at outlets
Mobile licenses and regulatoryclearance in Haiti
Must be part of a qualifyingservice
Must be made against the mobilewallet
Do not include in-group electronicgoods (e.g., phone airtime)
Only counted when using NewOutlets (non- banking or moneytransfer outlets prior to 2010)
Only count if successfullycompleted