– ‘No risk of fraud’ –
Authorities have quickly realised the potential of the technology to simplify the distribution of social benefits.
More effective and less restrictive, operators say the mobile payment system is also safer than old payment systems.
“People have a PIN number, and they must show their beneficiary card, so there is no risk of fraud,” said Yves Dublin, from the UN children’s fund Unicef, which provides technical support.
“This technology avoids cases of ‘ghost’ beneficiaries that we see with other programmes.”
It follows in the footsteps of neighbouring Kenya, whose M-PESA service run by British telecom giant Vodafone’s subsidiary Safaricom has become a leading force in the sector.
Users are encouraged to create a bank account to avoid losing up to a fifth of the monthly allowance offered – an average of 137 birr ($6) a month – in transport costs to collect the cash.
In Ethiopia, M-Birr has some 150,000 users, with 2,000 of those in Doni.
The innovation therefore not only improves the distribution of social security benefits, but also paves the way to opening up a potential market of tens of millions.
“Working in social projects also helps us to develop our network of agents,” said Thierry Artaud, the M-Birr manager.
“It’s a way to get people to use bank accounts, to understand what are savings, what are interest rates.”
