Companies need to distribute funds as salary, incentives, reimbursements or ad-hoc payments to their employees or channel partners and Vodafone’s M-Pesa solutions has stepped up to make this easier.
First an M-Pesa account is created for the business. This account allows the business to convert funds from its business bank account into digital money via NEFT/ RTGS. The account comes with a portal which lets the business process transactions and check them as well.
For making payments the company does an RTGS and receives balance in the M-Pesa account. The details (mobile number and amount) as an excel file are uploaded into the M-Pesa portal. This will debit the company M-Pesa account and credit to each of the recipients as specified in the excel sheet. The recipients can visit a nearby agent and withdraw cash. Funds are received by the recipients in a matter of minutes, with SMS intimation. The SMS can be customized by the company. Failed transactions, if any, can be checked on the portal.
|Issues in cash disbursement
|Non-payment/delayed payment leading to dissatisfied employees
||Instant transfer using M-Pesa to mobile wallet of employees
|Ad-hoc payments need to be made in cash and increases monitoring costs
||Ad-hoc payments made easy by voucher payments to mobile number
|Payment to temporary staff involves recurring cost for prepaid cards
||No additional cost since no cost involved by company in prepaid cards
|Prepaid cards are restricted to 150,000 rural penetration specific bank ATMs with poor semi-urban/rural penetration
||Option of cash withdrawal at over 120,000 M-Pesa outlets, 60% of which are in rural areas
|Card lost in transit/usage issues resulting in dissatisfied staff
||Direct credit to mobile wallet and hence no service issues
|Company employees carry cash to remote locations
||Digital money is received into the handset and cashed out at the M-Pesa outlets in the village with minimal risk to life or cash.
M-Pesa Success Stories
Jaipur Rugs - An exporter of rugs can now easily pay its weavers from different rural parts in India.
ConAgra Foods - An FMCG distributor now transfers incentives to its sales staff without a middleman and with greater transparency.
So, let’s make you a
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