International Organisation for Migration (IOM) UK

Prepaid card programme eliminates cash and enhances user experience

The UK operation of IOM, a leading inter-governmental migration organisation, runs voluntary return programmes for asylum seekers and irregular migrants.

The Challenge

IOM UK’s voluntary return programmes for asylum seekers and irregular migrants pay for flights and also deliver relocation grants. The organisation has traditionally paid out its grants in cash — a costly method that made reconciliation difficult for IOM and involved risks for both IOM and its beneficiaries. IOM, which makes up to 3,000 relocation grants a year, each of an average GBP500, wanted to reduce its risks, costs, and reliance on cash while improving automation. It was also eager to avoid the high implementation and maintenance costs associated with a new payment method. Most importantly, IOM wanted to find a payment method that would be more secure and convenient for its users.

The Solution

Citi^® Prepaid Services identified an opportunity to use prepaid cards rather than cash for relocation grants. The cards enable IOM to load and re-load cards (for future payments) through a secure electronic process remotely — eliminating the handling of cash. The card is presented to the beneficiary with terms and conditions, instructions,and a PIN number to departure. About 10% of all migrants receive additional payments when they have returned to their home country for educational support, for example. This process is made far easier by the use of cards, as it eliminates the need to wire funds to an individual's bank account — an important consideration for those who may not have access to banking services. The cards, which carry an IOM logo and are Visa® branded, can be used either to make fee-free purchases wherever Visa is accepted or to make cash withdrawals at ATMs. Consequently, they offer better security over previous cash payments and competitive currency conversion rates, which is important to beneficiaries who mostly transact outside the UK.

The Result

IOM’s prepaid card solution went live in January 2009 and by April almost all relocation grants were made by card. “We had been looking for a new payment method to replace cash for some time before Citi proposed its prepaid card solution,” says Tuukka Puolakka, Procurement Officer for IOM. “The proposal was a perfect fit for our needs.”

The user experience to date has been flawless, with prepaid cards guaranteeing payment on time, every time. Users feel safer carrying a card than cash, and it is faster and easier to receive further reintegration funds through the cards than through bank transfers. “In cases where clients lose their cards or have problems withdrawing money, Citi’s customer service is helpful in sending a replacement card or providing necessary assistance,” says Puolakka.

Citi’s detailed implementation and training process, including the appointment of a dedicated customer account specialist, delivered a smooth transition. “The implementation process was efficiently executed and the programme contributed to easing our day-to-day operations,” says Puolakka. “The Customer Service team is extremely helpful in answering our queries and their continued support makes a real difference.” IOM had no software or integration costs and did not have tochange any existing processes. The organisation has rapidly benefited from reduced costs, more detailed payment reports, and greater control and transparency.