Feed the Future
This project is part of the U.S. Government's global hunger and food security initiative.

2.4.4. Build Payment Systems

Resources

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DESCRIPTION

Cash-only economies limit enterprises and consumers from reaching their potential. They are limited to in-person transactions, and at a relatively low cost, considering the resulting insecurity consumers and enterprises feel when having a significant amount of cash on hand. It is additionally difficult for enterprises to obtain investments from sources outside of their immediate community. USAID holds expertise in supporting digital payment systems, from physical banking with electronic credit cards, to mobile banking, which may be more appealing in rural markets.

CONSTRAINTS ADDRESSED

  1. Ease / cost of collecting payments
  2. Transaction costs associated with originating and managing loans to target sector/region

ADVANTAGES

Coming soon.

DISADVANTAGES

Coming soon.

MUST HAVE’S, CRITICAL POINTS, OR QUESTIONS TO CONSIDER

Coming soon.


VIGNETTE: BUILDING PAYMENT SYSTEMS TO PAY THE AFGHAN POLICE FORCE

SITUATION

In Afghanistan, police salaries were paid infrequently and inefficiently.This had a significant effect on the morale of the Afghan police force.

STRUCTURE

USAID helped the government pilot the use of mobile money to pay police salaries, which resulted in timelier and more efficient payments.

IMPACT

Many police previously paid in cash reported a 30 percent payment increase, when in fact they were receiving their full salaries for the first time. As a result, government is now adopting mobile technology to replace cash payments and collections for civil servant salaries and electricity bills.