Digitizing payments in agricultural value chains (GSMA)

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Title
Digitizing payments in agricultural value chains (GSMA)
Author
Net Studios Africa
Year
2016
Abstract
This GSMA report explores the significant opportunity for digitizing agricultural payments in developing countries through mobile money. Agriculture contributes substantially to GDP and employs a large population, yet many smallholder farmers are unbanked and operate in cash economies. Digitizing B2P (agribusiness to farmer) and G2P (government to farmer) payments can drive financial inclusion, reduce costs, increase efficiency and transparency, and improve safety. This offers direct revenue potential for MNOs through transaction fees and indirect benefits like new customer acquisition and increased mobile money usage. The report highlights the potential to reach hundreds of millions of farmers and generate billions in revenue by 2020. It also details the advantages for farmers, such as time and cost savings, efficient cash management, and the creation of a financial identity. The report analyses formal and informal agricultural value chains, identifying formal chains as a more suitable entry point for digitization. Case studies from Haiti, Pakistan, Kenya, India, Mexico, and Nigeria illustrate ongoing digitization efforts and their impact. The document also outlines MNO business drivers related to direct revenue from transaction fees and indirect benefits like increased customer base and network usage.
Resource Subject
  • Mobile Money
  • Agricultural Finance
Keywords/Access Points
Digital Payments; Agriculture; Mobile money; Financial Inclusion; B2P Payments; G2P Transfers
Language
  • English
Archival Record ID
MFA.2024.0415