Subscriber management challenges

Households primarily pay their subscriptions in cash, and sometimes via mobile money. However, collection companies often face difficulties in tracking payments. Typically, they must hire a full-time person to manage collections or verify whether households have paid, to determine if they can continue to receive the service. Households that are up-to-date with their payments receive a sticker to place on their door or gate, indicating they are properly subscribed.

On one hand, there is a risk of revenue loss when cash payments are collected directly by garbage collectors. On the other hand, the cost of collection can increase if a dedicated person is hired to handle payments. Additionally, management does not always have complete visibility over whether all households have paid and that funds have not been diverted by those responsible for collections. This is particularly critical for mobile money payments, as it requires matching the phone numbers of the payers with the subscriber database to ensure that each transaction is correctly recorded.

Service beneficiary constraints

Households wishing to benefit from the waste collection service must be available on the day of subscription renewal. Cash payment poses challenges as it requires having the exact change to avoid complications related to giving back change. The requirement to be physically present to make the payment can cause stress and inconvenience.

Moreover, this obligation to be present at the time of payment means that households need to plan ahead and ensure they do not miss the renewal date. This represents an additional mental burden for families, especially those with busy schedules or multiple responsibilities.

A delay or forgetting to pay can lead to a suspension of the waste collection service, which can have unpleasant consequences such as the accumulation of garbage. This can also become a public health issue and attract pests. For households, the interruption of service may necessitate finding temporary solutions to manage their waste, which can be costly and inconvenient.

Overall, these constraints make the payment process a major point of friction in the waste collection system, making the service experience less user-friendly for beneficiaries.

Innovative approach to facilitating subscription payments

To address the issues related to traditional cash payment methods and logistical constraints, some waste collection companies in Lomé are adopting innovative approaches. For instance, AGIP-BTP offers its customers electronic solutions through SEMOA’s CashPay. This system allows households to renew their subscriptions securely and conveniently, and each customer is identified at the time of payment, eliminating the need for reconciliation by the collection agency unlike direct Mobile Money payments.

With CashPay, customers receive a monthly invoice via SMS or email, eliminating the need for physical contact or having exact change. Customers can then make their payments through various electronic platforms, such as Tmoney, Flooz, Coris Money, or even by bank card (Visa and Mastercard). This reduces the stress associated with cash payments and offers more flexibility for customers who can pay their bills from anywhere, at any time.

This innovative approach has several advantages for both companies and customers. For companies, it reduces logistical costs associated with collecting cash payments and minimizes the risk of misappropriation of funds. It also provides better visibility into payments, which facilitates subscription management and route planning for collections.

For customers, it means more convenience. They no longer need to be physically present to pay their subscription, which allows them to manage their time more effectively. Additionally, electronic payment reduces the risk of theft or assault associated with carrying cash.

Innovations like CashPay also create opportunities for customer loyalty. Companies can use these systems to send reminder notifications, offer special deals, or collect feedback, thus improving customer relations and overall satisfaction.

Ultimately, the innovative approach of some companies demonstrates that the waste collection sector in Lomé can evolve towards more modern and efficient solutions, benefiting both customers and businesses. These solutions can help make the waste collection service more sustainable, secure, and tailored to the needs of urban households.

Other innovation avenues to transform the waste collection industry

Beyond electronic payment solutions, other innovative avenues could help improve waste collection in Lomé. For example, replacing door stickers with unique QR codes for each household. These QR codes would allow customers to automatically receive their invoices and access payment options directly, facilitating subscription tracking.

Additionally, establishing a web portal or a mobile app would provide customers with a convenient way to check their subscription status and renew it online. This approach could also serve as a customer relationship management (CRM) platform, where companies could collect feedback and manage complaints more effectively.

Coupled with other technologies, these innovations would also allow collection companies to optimize their operations, for example, through geolocation of collection points and planning tools. This could reduce logistical costs and improve service reliability.

All these innovations can be implemented thanks to the flexibility of SEMOA’s CashPay, which offers features that meet these specific needs.

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With this increasing demand, hoteliers must face several challenges, including the acceptance of virtual credit cards (VCC) for online bookings and reducing the risk of no-shows.

Booking a hotel room in Africa

Booking a hotel room can be done in several ways:

• Directly contacting the hotel by phone, email, or through a form on its website.
• Using booking platforms such as Booking.com, Expedia, or TripAdvisor.
• In some cases, bookings can be made at the last minute by physically going to the hotel.

After bookings, managing payments

When booking through online platforms, the customer may choose to pay immediately. In this case, the platform collects the payment, deducts its commission, and then transfers the due amount to the hotel. Typically, payment at the hotel is made using virtual credit cards (VCC), which the hotel can charge like a regular credit card.

For direct bookings, hotel chains and some hotels may integrate an online payment solution on their website or through payment links. However, it is often observed that payment is made at the hotel upon key collection.

The risk of no-shows

Payment upon key collection carries a risk of no-shows. Without a financial commitment from the client, they can cancel their stay at the last minute or choose another establishment without consequence. This no-show represents a cost to the hotel: a room considered unavailable cannot ultimately be rented, and costs related to room preparation are unnecessarily incurred.

CashPay Hotel: a solution to secure booking revenue

CashPay Hotel is an online payment solution designed to meet the challenges faced by hoteliers in Africa. It addresses two major challenges:

• Accepting virtual cards. Banks rarely offer an online portal that allows hotels to independently process these cards. With CashPay Hotel, this operation becomes easy, thus eliminating cash flow discrepancies.
• Reducing no-shows by requesting full or partial payment at the time of booking. Through a payment link sent by email, SMS, or via WhatsApp, the customer can make payments by bank card or through mobile accounts such as Orange Money, Wave, MTN Money, and other payment methods.

CashPay Hotel is already adopted by about forty hotel establishments in West Africa. It is a reliable tool for securely collecting payments and thus improving the cash flow of the establishment.

By adopting innovative solutions like CashPay Hotel, establishments can not only secure their revenue but also offer a better experience to their customers. This is particularly important as hoteliers must remain proactive and adopt effective strategies to maximize their potential in an expanding market.

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