InterMedia have recently released a report for the Bill & Melinda Gates Foundation entitled ‘Mobile Money in Haiti: A Baseline Analysis of Access, Use and Barriers to Adoption‘ (July 2011). Based on 1,008 face-to-face surveys across Haiti’s departments, the report confirms our own findings presented in our April 2011 report on early adopters of mobile money in Haiti: the importance of security issues, the predominance of ‘me-to-me’ transactions over more traditional remittances, and willingness to try the new technology. InterMedia also found that education about mobile money and ease of access to mobile money agents will be key to the success of mobile money. The report presents some very interesting and useful data about domestic remittance routes, mobile money users’ education levels, and their experiences in dealing with agents.
Given that during both ours and InterMedia’s research periods (until April 2011) there were very few mobile money agents outside of Port-au-Prince, I was curious to see what InterMedia had discovered about mobile money adoption outside of the capital city. InterMedia’s report indicates that while most Haitians have heard about mobile money (especially through the radio or television advertisements), this familiarity does not necessarily translate into an understanding of what mobile money actually is (see page 31).
Read Erin Taylor's full blog post.
Insights for now: 
less risky than withdrawing money from an ATM or a bank because m-banking services are combined with other businesses, making it unclear to the observer whether that customer withdrew money or made a purchase. On the issue of accessibility, m-banking outlets can be far more accessible and reliable than banks, making them a viable alternative to a savings account. In all of these cases, customers decided that they would rather pay a fee to withdraw their own money than to run the risk of carrying their money around with them.
It appears that Haitians are using m-banking in a similar manner: to complement existing systems rather than replace them. It is different enough to formal banks or informal money storage to make it an effective way of mitigating risk. If a bank's system is out or a protest prevents a customer from travelling to their bank, they may still be able to go into the flower shop next door and withdraw cash. Rather than store all of one's money under one's mattress or in a savings box, Haitians may keep some at hand but deposit a portion in their m-banking account.
What lessons can we take from these insights? First, marketing the benefits of Me2Me may help build up m-banking's customer base. People are enthusiastic about promoting their own security and smoothing out their daily financial practices through providing backups and forms of insurance. Second, customer use of m-banking as a backup could be converted into savings practices. Rather than withdrawing their money within days, customers with some surplus income and trust in their m-banking provider could be incentivised to build up their balance, such as through awarding bonus airtime. A customer's savings record could then be used to apply for a loan or life insurance. If Me2Me transactions are approached in this way – as a personal bank account rather than just a better way to conduct P2P transactions – then m-banking could well achieve the goal touted by many development agencies of banking the unbanked. Me2Me transactions have the potential to play an important role in providing stability, security, and confidence in unstable markets.
Marigot is a small, leafy fishing village on Haiti's south coast whose size belies its importance on a land/sea trade route stretching from the Dominican Republic to Port-au-Prince. Twice per week, on Tuesdays and Saturday mornings, a fleet of small wooden boats arrives in Marigot from the border town of Anse-a-Pitres and the coastal town of Belle Anse. These boats come laden with salami, flour, coconuts, and bundles of used clothes from the Dominican town of Pedernales. Approximately fifty fishermen from Belle Anse and Anse-a-Pitres send coolers full of conch, fish and lobster to be sold in the market along with the catches of Marigot's two hundred resident fisherman. When the boats arrive at four am, they unpack their cargo and set up a market on the shore.
Three or four days until payment might not seem like much of a delay, but profit margins in the fishing industry–and, indeed, the entire town–are tight. Until they are paid for their catch, fisherman can't pay for the fuel they bought on credit or buy more to go fishing again. The entire town experiences a knock-on effect because fishermen must also purchase their household supplies on credit. Buyers are much better off because they can use their surplus cash for a few days before they have to repay the fishermen. But upon returning to Marigot they face the security issue of carrying from 20,00 to 40,000 gourdes (US$500-1000) with them. One fisherman told us that the risk of carrying cash sometimes serves as an excuse for delaying payment. He said that sometimes buyers will pay for their entire purchase the first time they buy; pay half the second time, and the third time they will claim to have been robbed while travelling over the mountain. So, even if robbery remains merely a threat, it can damage trade and profit in the fishing industry.
Mobile banking provides obvious benefits in this situation. If there were agents in the major towns along the entire trade route (in Port-au-Prince, Jacmel, Marigot, Belle Anse, and Anse-a-Pitres) then buyers could send money directly to the fisherman on the same day that they bought the fish. Fishermen could then pay their bills and immediately start fishing again. Money would not have to undergo the risk of crossing the mountains; nor would it have to travel back to Belle Anse and Anse-a-Pitres on open wooden boats that occasionally sink.
Mobile money's wallet size does not present a problem for the majority of small traders who inhabit the region, such as the many peasant women who travel down from the mountains to the market to sell plantains, beans and corn. Jacmel's artists could receive their pay directly from Port-au-Prince. Rapid payment would allow small traders and merchants around the towns to pay their debts and buy more stock. Customers, knowing that they can receive money quickly from other parts of the country, might have more confidence and buy more than they normally would. And families who currently conduct money transfers by boat could rest assured that their relatives are receiving their money quickly and safely. A simple piece of already-existing technology could greatly enhance the prosperity of the towns along this trade route.
Food aid recipients such as Marie seem to be using their mobile money without too much trouble. Mercy Corps help recipients register for T-Cash, give them a mobile phone, help the recipient activate their phone, train them to make payments using their mobile accounts, give them printed instructions, and visit vendors to make sure everything is running smoothly. Mercy Corps also employ volunteers to assist vendors and aid recipients during the transactions. Vendors are also happy: they are moving a lot more stock and making more money. Technical problems that crop up are worth the extra profit. Mercy Corps monitor prices in the town and encourage customers to seek out the lowest prices, as they normally would.
This approach–of targeting customers, merchants, agents, and billers simultaneously–
We are optimistic that Saint Marc can successfully transition to be a true T-Cash town. But we recommend the following: that Mercy Corps and T-Cash keep a critical eye on their joint operation to ensure that there is no conflict of interest; that they work closely with customers, merchants and agents in Saint Marc to ensure the development of a publicly available service rather than a closed aid program; and that they encourage link-up between different agents around the country. We also encourage TchoTcho Mobile to establish a strong presence in Saint Marc, in order to ensure that mobile banking in Haiti is competitive and prices stay low. Resolving the chicken-and-egg problem is not just about achieving a balance between users and agents; it is also about ensuring that different chickens are laying the eggs, and that the eggs can be transferred from one basket to another.
Who is the mobile money agent? In Haiti, businesses providing a mobile money service have a sign on the front of their shop identifying them as an “Agent Authorisé” (authorized agent). The business has gone through the training provided by the mobile money operator and is able to carry out the different transactions involved. However not all agents are created equal. Our research has found several types of agents.
Some mobile money agents are additions to already existing money transfer businesses. Voila’s T-Cash outlets are currently located in UniTransfer offices. The placement of the mobile money at the UniTransfer office is not without problems. Because there is only one line for money transfers and mobile money, T-Cash customers face the same amount of time waiting in line that existed prior to mobile money. Furthermore, mobile banking customers are more likely to be robbed using transfer houses than other kinds of businesses that are not associated with withdrawing cash. Long lines and the potential security risk associated with walking out of a mobile money outlet will discourage customers.
Benjamin, a computer programmer at a cyber café represents one of those “agents” whose work load was increased by the addition of mobile money service at his outlet. On the one hand, he is one of the most enthusiastic agents we have met because he is a true believer in the product and its promise. However, he is also a bit discouraged because as he said: “I am working for the mobile money operator but I do not feel that I am benefiting from them.” According to Benjamin, the agents are not the only ones who suffer. Clients do not receive the kind of attention they deserve, especially for a service that is so new and that involves their money. He explains, “When someone comes and are about to give them their money you have to spend all the time they need and answer all of their questions in order for them to trust you with their money.” Given that the target of mobile money are unbanked people for whom every penny counts, their ability to trust their agents is crucial to their adoption of mobile money. If clients cannot count on their agents being there or the agent has to rush off to serve other customers potential mobile money clients will think twice before adopting mobile money.
Accessibility is not the only obstacle to widespread registration for mobile money services. Education and literacy may prove to be serious stumbling blocks for both the commercial and development sides of mobile money. First, people need to know that mobile money exists, what it can be used for, and how to access it. T-Cash is currently advertising on Radio Caraibes and we have seen people on the street wearing bright green t-shirts that display the T-Cash logo and price list. Digicel will launch its advertising campaign in late April. So far we have encountered numerous people in Port-au-Prince who have heard about mobile money but do not know what it is for or where to find it. Indeed, they keep asking us to teach them about it, thinking that we are Digicel employees.
Once people are convinced of mobile money's value and have signed up, they also need to be shown how to use the service by an agent, an outlet, or by friends. Our major concern here is literacy. Most Haitians are numerically literate and have no problem using a mobile phone to make calls or check their balance. This is fine with T-Cash, which only requires a string of numbers to be entered. But TchoTcho Mobile customers must be able to read the French-language menus to make a transaction. It is curious that the simplest form of banking in Haiti requires the highest literacy rate, whereas formal banks do not require any literacy at all because the teller fills in the customer's form. Technological literacy and access is also an imperative, as it is not uncommon for Haitians to use their phones (or other people's) to make calls and nothing else.
Once in Haiti, I set out to register for both services. Registering for Voila’s T-Cash required sending a text to their dedicated number using your Voila phone. Within a few minutes you receive the secret pin required for withdrawal and transfers. Digicel’s TchoTcho Mobile is a little more bureaucratic as it requires in-person registration with a valid state-issued ID and a photocopy of said ID.
Another one of mobile money’s attractions is the ability to top up your phone account from your mobile money account. Using mobile money, you save the 10% tax that you pay when you buy a phone card. Mobile money is also economic in terms of time and convenience. Prior to mobile money I could only top up my phone using a phone card or a Pap Padap vendor. These transactions are limited because they require agent which is not always available either because of where I am or because shops are closed. While online top up is available, it is not an option for many people because it requires internet access and a credit card, two luxuries that are not readily available in Haiti. No story could illustrate the significance of mobile money for topping up your phone as this scenario presented by Samuel, a 19 year old university student. He said, “Have you ever been talking to a girl late at night and just when the conversation gets interesting you run out of money on your phone? At this hour there is not a store open or an available Pap Padap or Direk Direk vendor. Even if there were, you would be too scared to go out at that time. With Mobile money you can continue the conversation without losing momentum because once lost, you cannot recapture that moment.”