Teba Development and Lima Rural Development automate $9 million a month in cash transfers to 130,000 people

Overview - Teba Development and Lima Rural Development Foundation process payments to over 130,000 people a month.  All of these people are living on the poverty line and depend on this income to meet their basic needs.  They are often based in remote areas and are hard to contact.  Hence, it's critical that their payments are made on time.  However, both partners have found that between 5000 and 10,000 payments fail each month.  The reasons for this range from in-correct account information to suspended bank accounts (in-active bank accounts are suspended quite quickly in South Africa).

Staff must manually reconcile which payments have failed from bank statements and link them to the correct individuals.  Site staff must then collect the correct information before the payment can be made again.  This creates significant delays for the individual and a lot of extra work for Teba Development and Lima staff.

Kwantu used a secure payments gateway to process bulk payments to 130,000 people a month.  Reconciliation is also automated, with clear reports highlighting which transactions have failed and who the recipient is.  Facility level reports make it easy for managers to follow-up with people and get the correct information.

Kwantu helped us implement a system to automate wage payments to 62,500 participants a month on the Community Work Programme. This cut transaction costs from R3.75 to R1.20 per participant, saving us over R165,000 a month in bank fees - almost $180,000 a year. We found Kwantu affordable, approachable and adaptable to our changing needs."

Kathy Pitout, Lima Rural Development

Results - Staff no longer need to spend days each month painstakingly cross-referencing bank statements with attendance registers.  People working on the programme benefit from faster payments, as problems are resolved quickly.  Since implementing this integration, monthly payments of around R120m (~$9m) are now made to 170,000 people.

Clients - Teba Development and Lima Rural Development Foundation