Important Factors For Success In Mobile Money

by May 11, 2020Uncategorized0 comments

Geographical, economic and cultural differences in many countries greatly alter the rate of success in a mobile money deployment. Despite attempts by hundreds of mobile money establishments in many countries to emulate Kenya’s M-PESA, not so many of them have been that accomplished.

Two factors were critical to M-PESA’s success story; effectively managing the agent network and creating a superb product or app that compels usage.

Creating a unique product.

The approach for the product offering should be compelling enough to generate the number of transactions that will achieve sustainability. Such an approach is focused on developing an outstanding app that attracts the user and drives rapid transactions.

Initially, the product can’t be a one-size-fits-all, it should be one that addresses the actual need of the people. Every mobile money provider is different, for M-PESA, their approach focused on person-to-person transfers with the unique value proposition ‘send money home.’

The right product offering and value proposition for the target market are capable of bringing in a sizable number of loyal users, after which the mobile money provider may decide to include a suite of other offerings to attract a wide range of other users and generate more demand.

Managing the agent network

An agent is in partnership with a mobile money provider to conduct cash-in and cash-out services. What this means is that users can visit an agent in a convenient location to convert cash into electronic currency and back again. Agents are the face of the company to the end user. They are the interaction point between the users and the mobile money company.

It is imperative for a provider to carefully select the best agents, train and monitor them. Good agents are trained, especially in the use of the technology involved with mobile money. They are trained regarding fraud prevention and gaining users trust. They can manage liquidity, by generating enough business to maintain their electronic float and cash balances. They educate users about mobile money and are able to market the provider conveniently.

NOWNOW is a mobile money provider that is actively involved in understanding its business from the Agent’s point of view. We provide agents with a manageable path to profitability, analyse their day to day operations, and help them through points of difficulty. We help our agent see the value of being mobile money agents, thus empowering them to represent the brand well enough.

We understand the need to build an expansive agent network as this will increases access points for users. However, with too many agents in a location, it becomes difficult for an individual agent to generate enough business. Our approach for every community is to always maintain balance such that the users are not frustrated from lack of access points and our agents remain profitable.

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