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Paying for PSP Services--The Journey Towards a Sustainable Fee-Based Approach Image

Promoting Inclusive Markets and Financial Systems

Paying for PSP Services--The Journey Towards a Sustainable Fee-Based Approach

Paying for PSP Services--The Journey Towards a Sustainable Fee-Based Approach

Summary

When CRS and its partners launched the Private Service Providers (PSP) pilot in August of 2008, one of the goals of the project was that of building a market driven model to ensure the sustainable delivery of SILC services to communities in need. The idea behind testing a market driven approach was to determine whether communities interested in SILC services would be willing to pay for the services of a certified PSP. This paper highlights some of the findings from CRS and its partners in the three countries as they work with PSPs and communities in understanding the market value for SILC services through a fee-based approach. It should be noted that the information being provided in this paper is qualitative and is reflective of some of the early learning gleaned from initial observations. A more quantitative analysis is currently underway and involves the collection of data from partners in three countries on a quarterly basis. Once sufficient data has been collected to facilitate a comparison, a subsequent paper will be developed. In the meantime, the findings shared in the paper are designed to highlight some of the early lessons learned from the communities and the PSPs as they seek to negotiate the payment of their services.

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