Haiti’s Mobile Money Market Sees Shift with Boom Financial and Lajan Cash

Port-au-Prince, Haiti - In 2013, Haiti’s mobile money market underwent a significant transformation with the introduction of Boom Financial and LajanCash. For years, TchoTcho Mobile had been the only mobile money service available in the country. However, with the launch of these new players, the landscape has changed.

Current Market Perceptions

Despite the entry of new players, all three mobile money products - Boom, LajanCash, and TchoTcho - remain “bank-led” from a compliance perspective. This means that while they operate as non-integrated transfer and payment solutions, they are managed by financial institutions.

• Industry experts have expressed concerns about the effectiveness of this bank-led approach.
• However, there is strong evidence suggesting that Haiti would benefit from such a strategy, including greater liquidity and branch coverage for existing agent networks, as well as enhanced value proposition of mobile money services.

Financial Institutions’ Perceptions

Financial institutions in Haiti have varying perceptions about the potential of mobile money. Regulated institutions, such as banks, face challenges in investing in mobile money due to low commissions and limited agent networks. Unregulated financial institutions, like microfinance institutions (MFIs), see the value of mobile money but are unable to sponsor solutions themselves.

• Regulated institutions agree that a stronger merchant acceptance network is necessary to drive adoption.
• MFIs want to partner with regulated financial institutions to enable their clients to receive loan dispersals or make loan payments using their mobile phones.

Share Perceptions

A common theme among both unregulated and regulated financial institutions is the lack of incentive to invest in mobile money due to low commissions and limited agent networks. This creates a chicken-and-egg scenario, where a limited agent network prevents the provider from increasing its product’s value proposition, but financial institutions face no incentive to participate.

The Importance of Interoperability

Achieving interoperability between different information technology systems is crucial for offering mobile banking services. This means that financial institutions must integrate their core banking system with the mobile money provider’s platform to offer seamless services.

Conclusion

Haiti’s mobile money market has seen a significant shift with the launch of Boom Financial and LajanCash. While there are challenges to overcome, industry experts believe that greater participation by financial institutions could drive adoption and growth in the sector.