For reference:
#3 – Customer adoption may be slow because of lack of trust or customer education
#9 – Economics may be difficult to justify (especially in an experimental phase) based on need for high transaction volumes and economies of scale

One part of the solution to both of these obstacles is offering, promoting or supporting a broader range of services than just electronic/alternative payments to the MFI. When customer may use the same alternative channel, e.g. a mobile payments service, for MFI payments as well as bill payments, money transfers, savings, etc., then they use the service more frequently and become more comfortable. There is assurance in knowing that not only the MFI, but the electricity biller and the bus ticketing company all trust and support the same alternate channel. Additionally, repeat usage creates higher transaction volumes for individuals and among groups, so customer education and support can happen organically.

Regarding economics, the more services offered, the higher the transaction volumes. MFIs should not think in a silo. Rather, MFIs should understand where the broader payments ecosystem is moving and leverage the same trends, channels, partners, service providers. Increasing the transaction opportunities (and hence revenue streams) while incurring only marginal upfront investment improves the commercial proposition for all entities in the ecosystem.

The key to them achieving this of course is through the use of technology. There is a clear opportunity and market requirement for MFI’s to work with other MFI’s to create processing ‘hubs’, like an online market that serves both as a fundraising source and a way to process loans and mobile payments or their customers. These ‘hubs’ would in effect be a SaaS platform, and with numbers of MFI’s using this technology the costs to the MFI would be significantly reduced whilst the opportunity to share best business practices would be considerably increased.