Rural Revolution: AEPS, SpaceX Sales roll out via Jumia, Agent Tax Collections, and The sucess of TymeBank offline/online Unveiled!

?? Here is my weekly wrap [October 20th]

1. ?? ?? Unlocking financial inclusion AEPS emerges as UPI for rural #India

2. ??? ?? Selling SpaceX using the Jumia Group sales force. Is the product ready for last-mile customers?

3. ???? Can Agent Networks be an efficient way for governments to collect taxes on VAT from the Informal sector?

4. ???? Retail networks supporting #retailbanking customers online and offline

1. ?? ?? Unlocking financial inclusion AEPS emerges as UPI for rural #India

Aadhaar-enabled Payment System (AEPS) has revolutionized banking services in rural India by providing essential financial services to underbanked citizens. It allows people in remote areas to conveniently perform transactions using biometric authentication through Aadhaar. AEPS has deployed micro ATMs in previously uncovered locations, allowing individuals to access banking services without needing a physical bank branch.

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• Aadhaar-enabled Payment System (#AEPS) has successfully bridged the gap between traditional banking services and the previously unbanked population in rural India, providing essential banking services and reducing the need for long-distance travel.
• AEPS has leveraged #biometric authentication through Aadhaar to enable convenient transactions, such as deposits, withdrawals, and balance inquiries, through micro ATMs with fingerprint readers deployed in remote locations.
• The success of AEPS relies on collaborations with NBFCs, PSUs, and banking partners, as well as the presence of intermediaries (nanoprenuers = #agentnetworks) who act as a bridge between customers and banks, building trust and familiarity among rural communities.
• AEPS has not only improved financial accessibility but also enhanced the effectiveness of government schemes by leveraging #authentication to prevent duplication and identify ghost beneficiaries, ensuring that benefits reach the intended recipients.

?? Interesting developments from comments

So... Could #Nigeria could replicate India Stack with NIBSS and #NIN?

?? Olugbenga Agboola, Flutterwave CEO, has proposed that Nigeria could create its own version of India Stack, a digital platform that promotes financial inclusion, by leveraging the Nigeria Interbank Settlement System (NIBSS) and the National Identification Number (NIN).

Agboola believes that this initiative would financially include millions of Nigerians. He also highlighted the potential for collaboration between Nigeria and India in the technology sector, particularly in the area of #remittances.

Flutterwave recently announced its expansion to India through a partnership with IndusInd Bank. #AEPS #financialinclusion

Source: https://nairametrics.com/2023/09/10/nigeria-could-replicate-india-stack-with-nibss-nin-gbenga-agboola/

2. ??? ?? Selling SpaceX using the Jumia Group sales force in Nigeria and Kenya. With the complexity of setup and price point, is the product ready for last-mile customers?

This collaboration aims to provide high-speed #internet access to areas with limited infrastructure. While previous attempts by tech companies to deliver internet services in Africa have failed, Starlink's network of small satellites has a better chance of success.“The plan is to start selling through our sites and agents in Nigeria this month, and then Kenya.” - Hisham El Gabry, Jumia's Chief Commercial Officer.

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• Starlink and Jumia are partnering to offer satellite broadband services in Africa, starting with #Nigeria, to address the continent's low internet penetration.
• The collaboration with Jumia will help Starlink sell its portable satellite terminals in areas with limited infrastructure, potentially expanding #broadband connectivity in remote regions.
• While the cost of Starlink terminals may be a deterrent for now, Jumia aims to eventually sell the products via the website and #agentnetwork in all 11 African countries it operates in.

?? Interesting developments from comments

Moses Kemibaro shared a more compreensive "unboxing" experience describing that despite promising high-speed internet, Starlink's service in #Kenya has been marred by fluctuating speeds and notable latency issues, suggesting a trade-off between speed and reliability.

Source: https://www.dhirubhai.net/pulse/my-starlink-experience-kenya-disappointing-reality-behind-kemibaro/

3. ?? ?? Can Agent Networks be an efficient way for governments to collect taxes on VAT from the Informal sector?

The Market Traders Association of Nigeria (MATAN) has partnered with the Federal Inland Revenue Service (FIRS) to collect and remit VAT from its members in the informal sector.

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• MATAN will be using a digital platform for tracking turnover and ensuring transparency.
• MATAN members will receive identity cards with tax identification numbers (TIN) for tax purposes, and the partnership aims to tackle multiple taxation and curb the activities of touts and self-imposed tax collectors.
• The Federal Government pledges to improve the quality of locally manufactured products to boost Nigeria's export capacity and earn more foreign exchange. At the same time, the Manufacturers Association of Nigeria (MAN) continues to express concerns over the rising cost of production due to scarce manufacturing inputs.

?? Interesting developments from comments

Sarafadeen Fasasi one of the designers of this initiative and helped clarify the iniciative

"Currently a tax payer visits the bank, fill a teller, pay cash to cahier , a Cashier log into REMITTA or PAY DIRECT ,processes & print receipt. What's the means of that payment? Cash .

Same process flow but more efficient & faster. Trader visits agent location (which is closer) , get captured via online platform already integrated to FIRS midware, a slip with TIN printed & the information captured used to produce MATAN card . The card is funded via agent or ussd , tapped at the agent location anytime he or she wants to pay tax."

4. ?? ?? Retail networks supporting #retailbanking customers online and offline

TymeBank customer acquisition rate continues to accelerate, with over 200,000 customers signing up each month. The success of TymeBank's formula is further evident in its sister bank, GoTyme Bank in the #Philippines, which is growing at the same pace.

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• TymeBank has acquired eight million customers since its launch in February 2019, positioning it as one of the world's fastest-growing digital banks and a credible alternative to traditional banks in #SouthAfrica.
• TymeBank's unique "phygital" model, integrating digital banking with physical retail ecosystems and strong partnerships with leading retailers, has contributed to its rapid customer acquisition rate and growth. The success of TymeBank's offerings, such as the PayShap payment service and high-interest fixed deposit product, has broadened its appeal among affluent consumers and SASSA grant beneficiaries, while its acquisition of Retail Capital has further strengthened its position in the SME funding sector. Since launching PayShap SA in August as the only bank to allow payments to mobile numbers linked to any bank account for free, TymeBank has seen a steady increase in the usage of this real-time payment service. The bank’s fixed deposit product – launched earlier this year and offering South Africa’s best savings rates (11%) – has also been a huge success.

Greetings! I'm Hugo Pacheco , The Barefoot Economist, and I'm on a mission to drive financial inclusion through the powerful fusion of human-led distribution and cutting-edge technology.

?? I hope to raise awareness about important topics and news in financial inclusion, last-mile banking, and the central bank digital currencies (CBDCs) space through my newsletter, while also addressing the inconveniences and misconceptions of offline, unbanked, literacy, and one-size-fits-all solutionsDon't miss out on this transformative journey.

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