IDEO.org is thrilled to partner with CGAP on another project on financial inclusion for low-income consumers - working with African telecom companies in promoting the adoption of mobile payment systems. 

More and more telecom companies recently have launched mobile money transfer programs, allowing enrolled customers to load money onto their phones and transfer it instantly to any other phone number. This cash transfer system is important for two reasons: it establishes an initial relationship and builds trust between unbanked consumers and a formal institution,andit offers access to more money management options often unavailable to low-income people.A mobile money program consists of a mobile platform and a network of mobile money agents, which may later evolve to offer more financial products such as savings and loan services. By allowing customers to manage their money using their mobile phones, financial institutions can reach customers in typically unreachable rural areas, and those with limited access to physical bank branches can still access financial services. 

On paper, many countries in Africa are poised to have branchless banking take off, much like it has in places like Kenya. The value to the consumer seems clear:  Interactions with banks can sometimes feel intimidating while telecoms may seem less so, and unlike the time and money it takes to get to a bank branch or ATM, mobile money allows customers to transfer money to another phone instantaneously.  Mobile money customers don't have to worry about sending money across distances with unreliable or expensive couriers or risk being robbed when they are carrying large amounts of cash. Nevertheless, despite steady enrollment in these programs, many countries continue to have low mobile transfer activity.

CGAP engaged IDEO.org to better understand how to increase use of mobile cash transfers among those who are enrolled in such programs and how the service may appeal to those who are not yet enrolled. The IDEO.org team - comprised of information designer, John Won; financial reporter, Cris Valerio; and me, the behavior change specialist - will be learning from low-income communities what matters most when making and receiving payments. This broad approach to the issue will help us understand how mobile cash transfers might fit into the needs and desires of consumers prior to testing concepts on how to increase the use of cash transfers.

I'm looking forward to unlocking the mystery of why the penetration and usage of mobile cash has been so low in some regions compared to others. We will have to put aside what we see as the advantages of mobile cash (the assumed value proposition) and search for clues to how and why assets are currently transferred from person to person.  Our team will use the insights we gather from the field to enter the synthesis and prototyping phases in collaboration with CGAP, then test our prototypes during a second trip in June.