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The Better Than Cash Initiative

Using Electronic Payments to Advance USAID’s Mission

Controllers ConferenceDecember 15, 2011

Better Than Cash

A closer look at the Better Than Cash Alliance and USAID’s commitment to e-payments

What Could Be Better Than Cash?

It can lack transparency

It can be costly for operations

It can be dangerous

Beneficiaries

It can hamper access to financial services

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Five Key Benefits of Electronic Payments

The transition away from cash towards the use of electronic payments has the potential to…

− Create cost savings − Foster transparency − Increase security and speed of payment delivery − Encourage financial inclusion − Catalyze innovative business models and economic

growth

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Argentina decreased government payments leakages with its shift to electronic payment

cards. Those who admit taking bribes dropped by 92%

Transparency

Photograph: Vanderlei Almeida/AFP/Getty Images

When Brazil disbursed Bolsa Familia grants through electronic benefit cards, they cut administrative costs from 14.7% to 2.6%

Cost Savings

Security

After the 2010 earthquake in Haiti, incidents of theft of cash transfers fell by more than 50%,

due to the use of mobile money

Financial Inclusion

Women who have access to a savings account are able to make more productive investments and increase their level of income in just 6 months

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Innovation Over 20 financial institutions have linked to M-Pesa

Who can become a member?

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As a member of the Better Than Cash Alliance, an organization must adopt the core principles and commit to transitioning away from cash.

• Private Sector • Donor Organizations • NGOs/Development Community • Government

In return for their commitments, members may receive• International Recognition for leadership in this space• Potential access to technical assistance • Knowledge and information sharing resources

What is USAID doing about it?

USAID is committed to the core principles of the Better Than Cash Alliance, and is implementing internal reforms to help accelerate the transition from cash to electronic payments across the globe

• USAID has developed encouraging language • USAID is beginning to develop ”cash” baselines• USAID is supporting mobile money and financial inclusion

programs in select countries

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Is that it?

USAID is also developing an array of resources and tools that can be used to support their implementing partners’ analysis and decision to utilize electronic payments

• PEB• The Standards and Practices for Electronic and Mobile

Payments Report • An electronic payment type analysis tool• Cost savings analysis • Continued development of case studies and use cases for

electronic payments in the field• Knowledge sharing activities

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Q & A Break

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Now on to the comic strip!

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