This presentation given by mPay Connect Consulting was presented at Tech@State on August 2, 2010 at The US State Department conference on Mobile Money.

1. mPay Connect Consulting
Mobile Money:
the foundation to food security
Menekse Gencer
Mail: mgencer@mpayconnect.com
Skype: meneks80 August 2, 2010
Company: www.mpayconnect.com

2. agenda
1. background
2. why mobile money?
3. innovations
4. policy considerations
Tech@State ©mPay Connect, Inc.
8/4/2010
State Department Sessions on Mobile Money 2 2
mgencer@mpayconnect.com
Food Security Breakout Session

3. background
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Food Security Breakout Session

4. Menekse Gencer Bio
• Work Experience:
• mPay Connect Consulting
Clients include: Citigroup, SKTelecom, Bangladesh venture, US Retailer,
US MNO, IADB, World Economic Forum, mHealth Alliance (UN Foundation)
• PayPal Mobile
Business Development Director
• 17+ years high tech, mobile, financial services
• Mobile Money Publications:
• World Economic Forum, mHealth Alliance on mHealth and mMoney (Fall 2010)
• Innovations Magazine (MIT Press) on “(The) Mobile Money Movement: Catalyst to Jumpstart Emerging
Markets” (Fall 2010)
• “From Afghanistan to Silicon Valley: Mobile Financial Services for the Next Billion Customers” (viewed
over 4600 times on Slideshare.net)
• Mobile Money Speaking Engagements:
• Global MMT conferences
• Wharton, HBS , MIT, Columbia
• Education: Harvard Economics A.B., Wharton MBA
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5. food security defined
“Food security exists when all people, at all times,
have physical and economic access to sufficient,
safe and nutritious food to meet their dietary
needs and food preferences for an active and
healthy life.” (FAO, 1996)
At base of pyramid, 70% or 2.5 billion people
rely on food value chain for their income.
Up to 2/3 small farmers are women
No bank accounts,
but they do have (access to) mobile phones
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6. dimensions to food security
Money
to buy &
invest
Sustainability Prices/
/ Resources Markets
Food
Security
Nutrition/ Infrastructure
Safety /Distribution
Production
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7. access to money & data underpin all dimensions
Money
to buy &
invest
Smooth out income
through access to
savings and credit
Sustainability Prices/
/ Resources Markets
Mitigate risks through Mitigate risks of price
insurance for crop failure Food fluctuations through
insurance, savings, data
Security
Nutrition/ Infrastructure
Safety / Distribution
Trace source of food Increase speed of access
through electronic through money transfers and
money flows, and data Production vouchers for food access
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Increase investment through access to
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Food Security Breakout Session payments in value chain

8. issue: precarious cycle further exacerbated by
lack of financial services
Can’t invest
Crop
Output Less Money
Down
Turn to Sex Work
Less Farming
Can’t buy
food
Caretaker Burden
Up
Malnutrition/
Illness
Tech@State ©mPay Connect, Inc.
State Department Sessions on Mobile Money 8 Source: “New Variant Famine” Hypothesis by
mgencer@mpayconnect.com
Alex De Waal, mPay Connect
Food Security Breakout Session

9. why mobile money?
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10. mobile money defined
Using the mobile phone as a channel
to conduct payments, account management, and
other financial services
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11. mobile money = (mobile) financial services
Mobile Financial Services
Mobile Payments Mobile Microfinance
Microfinance Mobile Banking
Mobile Banking
Credit, Savings,
P2P C2B B2B B/G 2C Insurance Transactional Informational
• Mobile Money Transfer • At store • Replace cash • Salary • Disburse, Repay • Mobile bill payment • Alerts
• Domestic or International (proximity payments) in supply chain disbursements • Accrue assets • Brokerage • Account balance &
Mobile remittances • Mobile online • Pensions history
(e.g. eBay or ringtones) • Rebates
• Micropayments (to bill)
©mPay Connect, Inc.
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12. increases financial access
World Economic Pyramid
Banks
500 Mill
*>$20k/yr
Unbanked,
2 Billion Mobile
*$3260 to $20k/yr
Opportunity:
1.7 Billion in
Today 2012
4 Billion 2012 Source: CGAP
*<$3260/yr or <$9/day
Source: World Resources Institute
(*Individual Annual Income: 2005 USD Purchasing Power Parity)
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13. reduces costs of financial services
$ 4.00
Branch
$ 3.75
Live Rep $ 1.50
IVR
$ .08
Mobile
©mPay Connect, Inc.
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14. mobile money =
foundation for all industries in cash-dependent markets
mHealth, Off-Grid Energy, Food Security
Mobile Financial Services
salary, payments, savings, insurance, credit
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15. innovations
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16. Syngenta’s Kalimo Salama in Kenya
reducing risk and increasing investments through
mobile micro-insurance for small holder farmers
Kenya
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Food Security Breakout Session Kalimo Salama

17. Mobile Transactions
increasing supply chain efficiency and future sales visibility by
paying unbanked farmers via mobile vouchers
Zambia
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18. Nuru International
increasing farmer productivity by eliminating
“shoe leather costs” and safety issues with mobile account
Kenya
Agriculture Loans
Repay
(saves 2 hours
of time walking to bank) Educate/Train
Surplus output
enable savings
(safe account)
Crop Yields
Up 300%
Tech@State ©mPay Connect, Inc.
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19. Manobi
creating supply chain efficiencies and increasing price transparency
through mobile data and payments
Senegal
1. Certify farmers
2. Secure fair price (mobile)
3. Make purchases of supplies via mobile remotely
4. Improve market linkages
5. 5,000 farmers pilot
6. Commercial scale up in 2 months
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20. policy considerations
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21. policy considerations
1. Spur Innovation: Lessen burden on smallest, fastest innovators
2. Coordinate efforts: Fragmented efforts, but global solve needed
• Cross-Sector to support holistic approach to inter-disciplinary
issues (e.g. NVF)
• Cross-Country for mobile money to support regional and global
value chains (e.g. global food supply chain)
• Cross-Enterprise constituents for data sharing on upfront
investment outlays (e.g. Fully leveraging solar weather vane
network)
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22. Questions?
Menekse Gencer
mPay Connect Consulting
mgencer@mpayconnect.com
• Wharton MBA ‘98, Harvard BA Economics ’93
Special thank you to:
LinkedIn Group: Mobile Payments Series – mPay Connect
Jody Ranck, Syngenta Foundation, Mobile Transactions, Nuru International, Manobi,
World Economic Forum
Tech@State ©mPay Connect, Inc.
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Food Security Breakout Session