A new finding by Dalberg Global Development Advisors reveals that mobile money (MM) channel has emerged as the preferred alternative out of four major ICT solutions used in Haiti within the past two years after the 2010 earthquake.

The report “Plugging into Mobile Money Platforms: Early Experiences of NGOs in the Field” indicates that four electronic cash distribution solutions have emerged globally as alternative channels to physical delivery of cash to humanitarian victims. These are mobile money, electronic vouchers, prepaid cards, and smart cards.

The finding attests to the fact that the success of any of these four mechanisms of money transfer will often depend on the supporting environment. For example money transfers through pre-paid and smart cards work better when there exist a strong banking infrastructure and credit card networks. In the absence of this infrastructure such as the case in Haiti after the quake, the only two remaining options are physical cash delivery and mobile-based solutions.

The report continues that in Haiti, MM has emerged as the preferred alternative to physical delivery because of the rapid development of mobile telephony and the successful launch of MM. Haiti has completed more MM cash transfer programs than any other country, and to date, just under US $6 million in transfers has been disbursed to more than 24,000 beneficiaries via the MM channels of six NGO programs, the report said.

It will be recalled that Haiti was hit by a catastrophic magnitude 7.0 M_w earthquake, with the epicenter near the town of Léogâne, approximately 25 km (16 miles) west of Port-au-Prince, Haiti’s capital on Tuesday January 12 2010. The aftermath of this earthquake led to a massive relief and recovery efforts by non-governmental organizations (NGOs) with global support from individuals, governments, foundations, international organizations and the United Nations.

In June 2010, the Bill and Melinda Gates Foundation and the USAID-funded project in Haiti, Integrated Finance for Value Chains and Enterprises (HIFIVE) announced the launch of the Haiti Mobile Money Initiative (HMMI) to stimulate the development of mobile money services in Haiti.

For the detailed report, visit here.