PagaTodo

Summary of Proposed Investment

This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only.

Project number	26894
Company name	Petronet Sociedad Anonima de Capital Variable
Country	Mexico
Sector	Information
Environmental category	C
Department	Global Inform. & Comm. Tech.
Status	Pending Approval

Date SPI disclosed	March 18, 2008
Projected board date	April 18, 2008

Overview

Sponsor/Cost/Location

Development Impact

Contacts

Attachments

Project description

Paga Todo (PT or the company) is the leading independent provider of non-bank financial transaction services in Mexico. It specialized in electronic payments with a leading position in electronic prepaid mobile phone recharges and a significant position in the electronic disbursement of government benefits. Additional products include bill payment services, prepaid debit cards and domestic money transfers. PT provides these services in cooperation with an increasing network of retailers located throughout the country.

IFC’s proposed investment in the company would help PagaTodo expand its network.

Anticipated development impact of the project

The project is expected to have the following developmental impacts:

Improve access to financial services for low-income and under-banked households:

The project will help improve access to basic financial (payment) services for low-income households, as well as low-income pensioners, who receive their government benefit through PT and do not have a bank account. Going forward, PT’s future products, such domestic money transfers, will further enhance access to payment services for Mexico’s migrant workers.

Increased business volume for MSMEs:

The project will level the playing field for small retailers and enable them to compete with larger retailers on products offered electronically (like bill-payment and top-up) increasing thus product offerings and customer traffic.

Working capital for MSMEs:

PagaTodo’s innovative business model offers small retailers about one week of working capital extended by product owners.

Better access to consumer finance services:

The project has the potential of improving access to consumer credit for low–income and under-banked households. It will help improve access to services that require a non-cash form of payment such as a pre-paid debit card.

Assistance with collections:

Bill payment is for the moment a tedious and time consuming chore that keeps customers from paying their bills on time or paying them at all. Paying the bills where consumers buy groceries and other day-to-day household needs has a tremendous impact in changing this behavior and improving collections for publicly owned utilities.

IFC's expected development contribution

IFC’s equity investment will help PagaTodo to grow. It is anticipated that PT’s innovative business model may be replicated in other countries with IFC assistance. IFC will contribute its extensive experience in alternative payment systems in emerging markets and provide access research and contacts in the industry.

Environmental and social issues - Category C

PagaTodo is providing a facilitating service to retailers, using leased office space and computer networks, with minimal or no environmental impact. As a result, this is has been classified as a Category C project according to IFC's Environmental and Social Review Procedure.

IFC PROJECTS