Innovative Financing for the Small-holder Farmer
KickStart has designed and introduced an exciting new solution to get more pumps into action: micro-payments via cell phones. Mobile Layaway, marketed as “Tone Kwa Tone Pata Pump” (Swahili for “Drop by Drop Gets the Pump”) enables customers to make mobile payments of any amount, at any frequency, using M-PESA, a mobile money transfer system used by over 13.5 million subscribers in Kenya. Mobile layaway provides a convenient, secure method of saving up for a MoneyMaker pump, and helps customers commit to the purchase before they have the full amount.
Now in pilot stage, 126 customers are registered, and 65 have already paid in full and received their pumps!
Shortens the time to purchase a MoneyMaker pump: Mobile layaway customers say that if they could have done it at all, it would have taken them a very long time to pay for a pump. While it takes most customers as long as one year to save for and purchase a MoneyMaker pump, using the mobile layaway service to complete full payment takes an average of only 2.5 months.
Enables KickStart to reach an even poorer income segment: The majority of customers say that without mobile layaway, they would never have been able to purchase the pump. The average Mobile Layaway customer owns less land, livestock, & household assets than KickStart’s average MoneyMaker customer.
Enables KickStart to reach more women: Only 18% of customers who buy pumps in cash are women, yet 31% of the customers who have registered for mobile layaway are women.