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PERSPECTIVES ON DIGITAL CURRENCY

Jul 18, 2013

development

Innovation in Development Disbursements: Visa Innovation Grant Recipients Announced

 

Today we’re proud to recognize the recipients of the Visa Innovation Grants Program. In partnership with NetHope, a consortium of more than 40 humanitarian organizations, and an Expert Advisory Committee of distinguished public and private sector leaders, five leading development organizations were selected to receive funding for projects that will modernize the distribution of agriculture, health and emergency relief payments to those living below the poverty line.

The Visa Innovation Grants Program is one component of Visa’s ongoing dedication to advancing financial inclusion around the world.  Every year, billions of dollars in cash payments are distributed to people in need through emergency relief efforts, benefit stipends, conditional cash transfers, microfinance programs, and other development initiatives.  Digitizing these payments through mobile phones or other electronic methods not only improves the distribution of aid, but can also help recipients gain access to broader financial services, including savings and electronic payments tools.

The group of five grantee organizations includes: Agribusiness Systems International (ASI), Freedom from Hunger, International Federation of Red Cross and Red Crescent Societies (IFRC), Mercy Corps, and Pathfinder International.

Each organization has been awarded $100,000 to support innovation in and adoption of electronic payments. The projects are focused on a wide variety of sectors, yet all are seeking better ways to distribute aid to the people who need it most.

Here is an introduction to the projects selected for funding, which we will cover in depth in future posts:

  • Agribusiness Systems International (ASI)

ASI will use the Visa Innovation Grant to bring formal financial services to rice farmers in Ghana. The program will extend branchless banking in rural areas by integrating mobile finance into the rice value chain. Mobile finance will reduce the risk of theft, connect farmers and other actors with financial services, and ensure timely payments to farmers. Founded in 1993 as an affiliate of ACDI/VOCA, ASI is a nonprofit consulting organization that helps smallholder farmers become competitive in the agribusiness sector.

  • Freedom from Hunger

Freedom from Hunger will use the Visa Innovation Grant to improve access to health services in rural Ecuador by integrating electronic payments for health services through local microfinance institutions that provide health savings and credit accounts. The program combines payment services with improved access to health services and education. Freedom from Hunger has more than six decades of experience fighting global poverty and hunger, as well as developing and testing flexible and sustainable approaches that provide group-based financial services, education and access to additional products and services to poor women and youth.

  • International Federation of Red Cross and Red Crescent Societies (IFRC)

IFRC, along with its partner American Red Cross, will use the Visa Innovation Grant to design and test a rapidly implementable and scalable electronic cash transfer system(s) with Red Cross National Societies in Latin America and the Caribbean. Electronic payments improve security and transparency of aid payments, enable families to begin their recovery in the shortest time possible and create a pathway to more formal financial services. The IFRC is the world’s largest humanitarian network, acting before, during and after disasters and crises to meet the needs and improve the lives of vulnerable people.

  • Mercy Corps

Mercy Corps will use the Visa Innovation Grant to provide smallholder farmers in Indonesia with access to mobile money, improving their productivity and increasing incomes. The program’s scalable and replicable model connects banks, mobile network operators and a full range of stakeholders in the agricultural value chain, while also helping farmers gain the knowledge and tools they need for success. Mercy Corps is an international development organization that helps people around the world survive and thrive after conflict, crisis and natural disaster.

  • Pathfinder International

Pathfinder International will use the Visa Innovation Grant to introduce a mobile money-based payroll system for its community health workers in Kenya. The pay-for-performance incentive model will be combined with access to real-time field data, improving transparency and the quality of services delivered. Pathfinder International is a nonprofit organization with a focus on access to contraception; maternal and newborn health; and HIV and AIDS services. The organization has implemented projects in more than 100 countries worldwide, and is recognized for its innovative and responsive approaches to meeting health needs at the community level.

There were many impressive ideas submitted by all applicants, and we believe these projects have particular promise for scaling electronic payments across diverse sectors. We look forward to supporting these projects and seeing how each will spur new ideas and models for the future of aid and development payments around the globe.

[Photo above: Elizabeth Mueni (right), a community health worker in Kenya trained by Pathfinder International, uses a mobile phone to collect data and track the health needs of her clients. Photo by Sala Lewis.]

 Check back for more updates about the Visa Innovation Grants Program and the group of recipients highlighted above.

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Posted by: Douglas Sabo, Visa Corporate Responsibility on July 18, 2013 at 6:13 am

Dec 4, 2011

Delivering Electronic Financial Services in Africa

Greetings from Rwanda.

I am delighted to be posting this blog from Kigali, Rwanda where, along-side Ambassador Claver Gatete, Governor of the National Bank of Rwanda, we just announced a new public-private partnership between Visa and the Government of Rwanda to electronify financial services.

Why have we entered into this partnership and what is it all about?

At Visa, we believe that everyone has a right to access basic financial and payment services.  And over the past six months, we have been working closely with the Government of Rwanda to forge a partnership to accelerate the delivery of such services to the Rwandan population.

Today, we are proud to share an overview of our collective labors: a Charter of Collaboration aimed at developing localized solutions to extend access to financial services to local and international consumers throughout the country.

The Charter of Collaboration encompasses 12 initiatives structured around three key areas identified by the Government of Rwanda and Visa as vital to the development of a fully-inclusive financial system:

Laying the Foundations for Electronic Payments – We have committed to working together to develop the basic infrastructure requirements which will enable country-wide use of electronic payments.  This means facilitating the widespread issuance and acceptance of payment cards and the localization of clearing and settlement services.

Promoting Electronic Payments Innovation –Secondly, we have agreed to work to ensure that Rwanda can take advantage of modern technologies to reach Rwandans who are under-served by traditional payments infrastructure.  I expect mobile payments to be a big part of this solution and we’ll talk more about that in the coming months.

Capacity Building –Finally, building a robust electronic payment infrastructure requires more than products and technology.  To ensure long-term economic success, we have committed to delivering a coordinated and sustained program of capacity building.  This will comprise a range of initiatives designed to increase financial literacy and provide industry training and experience for local Rwandans.

You can see the detail of the Charter itself by following this link.

Public-private partnership is a cornerstone of Rwanda’s approach to development.  It is also a key component of Visa’s global growth strategy as well.  To me, this Charter has all the makings of a classic win-win and we’ll be certain to keep you informed of progress

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Posted by: Elizabeth Buse, Visa Group President, Asia Pacific, Central Europe, Middle East & Africa on December 4, 2011 at 9:00 pm