E-PAYMENTS

IN EMERGENCY CASH TRANSFER PROGRAMMING

N TS ID
E
M DS
PRE-PA SMART ER

AY VOUCH

E-P ETHO PRE-PAID / MAG

STRIPE CARD
SMART
CARD
MOBILE
MONEY
MOBILE
VOUCHER
M
Plastic card Card with chip; SMS code cashed SMS voucher code
DESCRIPTION
usable in ATM valid POS out at outlets used at shops

USAGE Cash grants; Cash grants; Cash grants; Vouchers

vouchers store purchases vouchers
FORMAL ID
NO NEGOTIABLE YES NO
REQUIRED?
NEEDS NETWORK
YES NO YES YES
CONNECTION?
SET-UP /
LOW HIGH LOW LOW
HARDWARE COSTS?
SCALE 300 - 1.3m 1000 - 60,000 100 - 8,000 1,000 - 5,000
(actual examples)

EXAMPLES FROM HUMANITARIAN PROGRAMMES COST-EFFECTIVENESS

2010-2011 INCREASES WITH TIME
PHILIPPINES
Longer-term
NIGER
HAITI
IVORY COAST

SMART DR CONGO
KENYA
MALAWI
ZIMBABWE ZIMBABWE
PRE-PAID

VO
U C HE
R
SYRIA PAKISTAN
PHILIPPINES
BENEFITS & CHALLENGES OF E-PAYMENT
METHODS
in emergency cash transfers

BENEFITS CHALLENGES
ID - No need for formal ID or bank account - Require connectivity and compatible PoS
PRE-PA - Relatively low set-up costs - Higher risk of theft
- Can be used for cash or commodities - Proprietary systems restrict no of outlets
PRE-PAID / MAG - Potential to restrict expenditures limits
- Fast to roll out
STRIPE CARD recipients’ flexibility and choice
- Can be pre-stocked

- May require bank account & formal ID

- Can be used offline anywhere with PoS
- Risk of PIN sharing
SMART - Can be used for cash or commodities
- High rate of errors with biometric systems
- PIN / biometric security protects the
SMART - Proprietary systems restrict no of outlets
cash from theft
- Restricted by cash flow of outlets
CARD - Change can be saved on the card
- Cost of card & equipment may be high

- Fast & discrete

- Operates outside coverage of banks
- PIN security connected to individual SIM
MOBILE - Relatively low set-up costs, especially
if phones are shared
MONEY
- Can be used for communications
- Some formal ID may be required
- Literacy / education may be a barrier
- Limited by network connectivity
- Limited by agent coverage and cash flow

- No need for formal ID or bank account

- Limited by network connectivity
VOUCHER - Not limited by agent cash-flow
- Network issues may cause delays
- Reduced risk of theft or fraud than with
MOBILE - Literacy may be a barrier
paper vouchers
VOUCHER - Significant training may be required
- Low hardware requirements

From the research: New Technologies in Cash Transfer Programming and Humanitarian Aid www.cashlearning.org