CONSULTANCY – PAYMENT SOLUTION SELECTION FRAMEWORK FOR CVA IMPLEMENTORS At Action Against Hunger USA

PROJECT BACKGROUND

The CALP Network is a dynamic global network of over 90 organizations engaged in the critical areas of policy, practice and research in humanitarian cash and voucher assistance (CVA) and financial assistance more broadly. Collectively, CALP members deliver the vast majority of humanitarian CVA worldwide.

What makes the CALP Network unique is its diversity. CALP members currently include local and international non-governmental organizations, United Nations agencies, the Red Cross/Crescent Movement, donors, specialist social innovation, technology and financial services companies, researchers and academics, and individual practitioners.

Together we seek to better meet the needs and improve the outcomes for people affected by crisis. To do this we ensure that CVA is a central, scalable component of quality, timely and appropriate humanitarian assistance, and that the need to sustain positive outcomes for people over the longer term is considered.

PROJECT OBJECTIVES

Main objective

Organizations that implement Cash and Voucher Assistance (CVA) programs understand the choices when it comes to selecting payment solutions and make decisions based on recipients’ preferences.

CONSULTANCY RATIONALE

The number of payment solutions available to CVA implementors is rising, and increasingly these solutions give access to multiple FSPs in more than one country. The ability to connect with multiple FSP has the potential to decrease costs and increase the efficiency and effectiveness of programs. The payment solution space is fast moving and not well understood across a broad range of CVA implementors.

There are also further factors to consider beyond the easiest to measure, cost and process efficiency including:

• recipient’s preferences over the type cash they receive[1];
• safety and transaction costs;
• data protection/sovereignty[2];
• Anti-Money Laundering (AML)/Know Your Customer (KYC) requirements;
• digital literacy of CVA implementors teams & recipients;
• the localization agenda;
• maturity of FSP’s IT systems;
• ability of recipients to understand the program and resolve issues;
• understanding of recipients’ access to phones, sim cards, ATMs and other payment infrastructure. Knowledge that might only be held in-country;
• capability for recipients to receive additional services such as program updates;
• where contracting ability is within organizations;
• ability and desire to take on contracting risks;
• the ability to quickly scale-up a response; and
• prioritizing in-country investment[3].

Payment preferences are cultural, a payment solution cannot be deployed in a different context without considering the cultural context of the intended recipient group.

This work will cover the breadth of payment solutions available to CVA implementors but will primarily focus on digital currencies, with consideration given to physical cash in contexts where digital alternatives are not available. Central Bank Digital Currency (CBDC), cryptocurrencies and stablecoins will be out of scope.

OBJECTIVE OF THE ASSIGNMENT

Specific objectives

1. Payment solution options

• Research and explain the payment solution options available to CVA implementors including national FSPs, national payment gateway/switch, regional aggregator, financial services groups, international aggregators and government-backed inter-territory payment networks. This will also include notes on what key actors are doing in the space.
• Using a matrix approach, summarize the pros and cons of each solution, for different types of organization i.e., national NGO, international NGO or United Nations (UN) body. The pros and cons will include regulatory considerations

The research will allow non-payment experts from the following teams; CVA program management and reporting, finance, procurement, legal, risk & compliance and cash advisors to understand their options when it comes to selecting payment solutions. It will contain case studies to assist in the understanding of why a blend[4] of payment solutions worked in a particular context.

1. Selection framework

Using a Cultural Value Model (CVM)[5] based approach, develop a framework that will allow organizations to select a blend of payment solutions that maximizes the quality of CVA delivery to recipients, whilst also considering the limitations and perspectives that organizations face.

The framework, in a matrix, flowchart or other easy to follow format, will allow non-payment experts to select the blend of payment solutions that best suit their program/organization.

KEY DELIVERABLES / MILESTONES

The following are the final deliverables to be completed by the end of the consultancy, unless otherwise discussed and agreed upon by the ACF-USA and Consultant:

1. Inception report confirming the methodology and KIIs, due 15 May 2023 (20%)
2. Detailed “leave-behind” PowerPoint slide deck in English, detailing the results of the specific tasks, due 30 September 2023

Summary for presentation PowerPoint slide deck, in English, summarizing the results of the specific tasks, 30 September 2023 (70%)

1. Presenting the findings on a webinar hosted by CALP, due 30 November 2023 (10%)

TENTATIVE TIMELINE & ACTIVITIES

This scope of work will cover approximately 37 days between START and END dates noted above.

Any additional days and/or modification of Start/End dates must be completed before additional work is commenced.

WORKPLAN/METHODOLOGY

CALP will support by convening the Webinar for the presentation of findings, suggesting Key Informant Interviewees (KIIs) and a bibliography, although the consultant(s) are expected to supplement these with their networks and knowledge.

MANAGEMENT ARRANGEMENTS

This consultant will report directly to the Responsible Manager, listed above, who will be responsible for approving deliverable(s) and invoice(s). Additionally, technical supervision will be done by CALP’s data and digitization technical advisor.

Action Against Hunger is a host of the CALP Network; we are a U.S.-based organization, and as such must comply with U.S. Internal Revenue Service (IRS) rules and regulations. If you are selected for the consultant work, and choose to work with Action Against Hunger USA, you must provide the proper IRS form to determine your tax status either with a W-9 form or W-8 form, depending on your tax situation. Please visit www.IRS.gov for more information. Any tax questions should be directed to your tax advisor. Contracts and payments are dependent upon receipt of the signed IRS form. Payment of Invoices are net 30 days. Additional details provided in service contract.

Physical Demands

• While performing the duties of this job, the consultant may be required to sit for long periods and to concentrate on work, including typing, and turn out heavy volumes of work accurately, within short time frames. Must be able to proofread own work accurately so that only minor corrections are needed on an infrequent basis.
• The physical demands described here are representative of those that must be met by a consultant to successfully perform the essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions.

Working Conditions, Travel and Environment

• Must provide own computer, internet, software, and other basic office supplies required to complete the duties for this consultancy.
• Must be available to work outside normal office hours or on the weekends as needed or required by contact with the Project Team or other partners.

MINIMUM DETAILS IN APPLICATION

The consultant should submit an application including:

• A technical proposal (c. 5 pages) detailing their understanding of the TOR and methodology that will be used to undertake the task;
• A financial proposal/budget (and daily rate) in USD only, inclusive of all taxes (e.g., do not send as +VAT);
• Details of prior experience conducting similar work, including resume / CV; and
• Details of how the consultant(s) meet the Essential and Preferred profile detailed below.

PROFILE OF THE CONSULTANT

Essential

• An understanding of CVA programming
• Experience of working in humanitarian response contexts
• A deep understanding of payment solutions, evidence through previous roles held and consultancies completed
• A network of payment industry stakeholders to draw from
• Fluency in written and spoken English

Preferred

• It is expected, though not mandatory, that the consultancy team will consist of at least one humanitarian expert and one payments expert
• Fluency in Arabic, Spanish or French
• Experience of research in a people-centered/human-centered design approach
• Experience with writing on the ethics of technology

[1] Digitizing Cash Transfers to Remote Rural Populations: Challenges and Solutions from the Experience of Zambia, World Bank Group, 2022

[2] Blockchain, Sovereignty and Humanitarian Payments, Dr Margie Cheesman, 2022

[3] The Role of Financial Services in Humanitarian Crises, CGAP, 2017

[4] Global Payment Solutions for Humanitarian Assistance, IFRC, 2022

[5] About the Cultural Value Model – Tuning In – Open University