Mobile phones, services and applications. PCs, PDAs, Wi-Fi, Bluetooth, Internet, gadgets, electronics, photography. A technology-life journal ... Relaxed prose, sometimes witty, sometimes funny, reflective and insightful. Short and sweet. Filipino.

Wednesday, September 07, 2005

Push G-Cash the AutoloadMax way …

During my pilot study of m-commerce for microfinance, we identified that there was low uptake of G-Cash. I trained people in the use of G-Cash and I called them G-Cash Retailers (GCRs). Most of these GCR’s were existing AutoloadMax retailers (AMRs).

The AutoloadMax business nets around 14% for an AutoloadMax dealer. That is, out of P100 peso investment in AutoloadMax, they can earn an additional P14.

On the other hand, G-Cash Cash-in partners (Cash-in is the conversion of Cash to G-Cash) earn only 1 to 3% through the service fee they charge the customer. This means ... that for a Cash-in (a purchase) of P1,000 worth of G-Cash, a customer needs to pay P10 or more.

Put AutoloadMax Retailing and G-Cash Retailing side-by-side and you’ll see that it’s a better business to retail AutoloadMax.

There are tens of thousands of AutoloadMax dealers but only a few hundred G-Cash outlets in the Philippines.

Question: How do you increase the number of G-Cash outlets / G-Cash Retailers?

My Answer: Use the AutoloadMax model.

The AutoloadMax business model is…
For every P100 worth of AutoloadMax a retailer sells, the retailer will get a bonus of P14 worth of AutoloadMax. She can sell this at cost to her customers and thus earns P14 for every P100.
Do the same with G-Cash.
For every P100 worth of G-Cash “sold” (Cash-in) by a G-Cash Retailer, the GCR gets P14 worth of *Autoload* (not G-Cash). The GCR can then sell this P14 worth of AutoloadMax at cost. This is the same markup as AutoloadMax at 14%.
Here’s an example.
Maria is a GCR and has P1,000 worth of G-Cash.
Pedro wants to buy P1,000 worth of G-Cash which he will send to his daughter in the province.
Pedro hands over P1,000 cash to Maria.
Maria sends P1,000 worth of G-Cash to Pedro.
For this transaction, Maria will get P140 worth of AutoloadMax which she can sell to her other customers at cost.

Can this happen?

Is there anything stopping Globe from shelling out that 14% worth of AutoloadMax?
Well, why not? They’re doing exactly that for AutoloadMax retailing.
They’re also shelling out 5% worth of G-Cash each time subscribers use the G-Cash to Load service (I just tried it tonight).

Will it work?

A similar model was used by G-Cash last year for Mercury Drug.
They were “giving away G-Cash” but it could be thought of as giving away load. (See explanation here).

So, do you think it will work?
Unless I missed something, I think it will work.
I’d like to hear from my readers (paging markku and jepoy).
What do you think? Will it work?



  • At 10:50 pm, Blogger Jepoy said…

    nice idea.. that way, maraming magiging cash-in/cash-out outlets for G-Cash... I've had my share of frustrations before in finding a cash-out center. If globe can tap the A-MAX retailers, insta-outlets sila agad.

    But wait... that's bad pala... bad competition for our "hopefully-soon-to-be" online store/remittance center ek ek chuva choo choo... :P

    Globe > Smart

  • At 1:19 am, Blogger markku said…

    I think they can give 14% for AutoloadMax because they probably earning very well selling call and text services. Sa madaling sabi, baka naman kasi sobrang taas ng margins nila for their cellular network.

    Pero sa kaso ng G-Cash, you're basically selling cash, paid for as cash. That could be the complicating detail.

  • At 10:13 am, Blogger Edwin "ka edong" said…


    may niluluto ka diyan, ha. Sarapan mo! Hope what you're cooking won't be spoiled by innovations in G-Cash/Smart Money. I think you have to factor that in, you have to expect that G-Cash/Smart Money will continue to innovate.


    Yup, it's changing cash for G-Cash. The 14% AutoloadMax is to incentivize the retailing of G-Cash. In addition, that notorious 1% Cash-in/out fee can be done away with.

    They did "give away cash" in the past when they promoted AutoloadMax in Mercury Drug.

    ka edong


Post a Comment (comments posting disabled)

Technobiography has moved!
Please visit Technobiography's New Home
and update your bookmarks. Salamat!