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Jul 18, 2013

NetHope

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

Nov 26, 2012

Sparking Innovation in the Humanitarian and Development Community

Today Visa Inc. and NetHope, a consortium of 37 humanitarian organizations, announced the Visa Innovation Grants program to help modernize humanitarian aid payments. Through this program, Visa is making available $500,000 in grants to humanitarian and development non-governmental organizations to increase the speed, security and long-term impact of aid and development programs through the innovation and adoption of electronic payments.

Every year, humanitarian, development and government organizations distribute billions of dollars of cash payments to people in need through benefit stipends, emergency relief payments, and other development initiatives. Driven by the need to ensure faster delivery, greater transparency and increased security, these organizations are beginning to shift from distributing physical cash to electronic payments. For example, electronic payment distribution enables beneficiaries to use a card or mobile phone to purchase food, buy essential household needs, pay for preventative or emergency health care and obtain other critical needs more efficiently and with greater accountability.

Visa’s Innovation Grants build upon ongoing support of programs that improve and modernize humanitarian aid. For example, after the devastating flooding in Pakistan in 2010, Visa worked with the Government of Pakistan and our financial institution partners to distribute Watan Visa prepaid cards to 2.5 million families to help them purchase items to meet their basic needs. (Read more about Visa’s humanitarian response in Pakistan here). Visa also supports the Cash Learning Partnership, a consortium of humanitarian organizations focused on reducing the time and resources required to distribute relief funds to people impacted by emergencies. (Read more about Visa’s partnership with the Cash Learning Partnership here).

To encourage more innovative thinking in the humanitarian and development communities, we need to unleash better ways to deliver aid. These grants are just one way to spur the innovation needed to continue to bring humanitarian and development aid into the 21st century.

For additional information about Visa and NetHope’s grant program, please read today’s joint press release and joint post on CGAP’s blog.

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Posted by: Douglas Sabo, Visa Corporate Responsibility on November 26, 2012 at 6:58 am