Breaking Liquidity Barriers
The major barriers to liquidity management:
Hapa Cash’s suit of solutions:
Liquidity Management is a barrier to the growth of agent network
Each barrier requires a specific solution. There is no “one-size-fits-all” solution
This is why Hapa Cash proposes a comprehensive set of liquidity management tools to address the different types of barriers.
With Complementary and simple products
- Agent has a balance of 0$
- Customer buys 10$ of Airtime. Transaction is completed
- Agent has a balance of -10$
- Agent buys minimum 10$ of float the next day before noon otherwise he is blocked
- A users posts a requests for cash or float
- Another user accepts the request
- The users transact between themselves
- Every day, the agent receives a message telling him how much float and Cash he should have for the following day.
Agent overdraft as an emergency pool of float
Issue: Agents face short term out-of-stock issues on their eFloat due to unplanned variations in demand or poor liquidity planning especially during weekends and after business hours.
Solution: Enable the agent’s wallet to dip into an overdraft for a very short period.
Usage: The overdraft should only be used as an emergency tool. The overdraft should not be used as a working capital.
Objective: Enable customers to never bounce at a Telenor agent especially on week-end and holidays and after-business hours
Amounts: Up to the daily transactional sales value. The amount is set by Kuunda’s score card.
Duration: The overdraft needs to be repaid the following day.
Risk limitations: Agents can’t withdraw the value of their overdraft. Moreover, their transactional wallet is blocked if not repaid in time. This also reduces the risk of over-indebtedness for the agent.
Marketplace for P2P Lending and Exchange
One platform for 2 complementary usage:
Leveraging community lending
Support the agent to lend to his customers and to other agents
How does it work?
- A borrower requests a loan to the agent ( the lender). The agent vets the borrower and enters the loan details in Hapa Cash.
- The agent provides around 60% of the loan value and Hapa Cash/the bank tops-up 40% of the loan value.
- The bank bears the default risk on their portion.
Enable anyone to act as an Agent on the marketplace
Do Cash-in /Cash-out amongst users
How does it work?
- A mobile money user (i.e. regardless of his customer or an agent profile) requests to exchange cash or float on the marketplace
- Another mobile money user accepts the request on the marketplace
- Both users meet and exchange instantly the cash for the float. There is no credit risk.