Uptake of safe water products remains low, in spite of modest cost. We experimented with a sales offer that combined a free trial and rent-to-own payments for durable filters. Purchase rates doubled under this sales offer to 31% compared to a traditional lump-sum sales contract. To lower transaction costs we collected payments using Kenya's vast mobile banking network, MPESA. Mobile repayment rates were low; many filters were paid only when a vendor came in-person to request payment, which adds social pressure. While the rent-to-own offer is attractive, more work is needed to reduce transaction costs in rural and peri-urban Kenya.
Luoto, Jill E. and David I. Levine, Mobile phones, rent-to-own payments & water filters: Evidence from Kenya. Santa Monica, CA: RAND Corporation, 2014. https://www.rand.org/pubs/working_papers/WR1039.html.
Luoto, Jill E. and David I. Levine, Mobile phones, rent-to-own payments & water filters: Evidence from Kenya, RAND Corporation, WR-1039, 2014. As of February 2, 2023: https://www.rand.org/pubs/working_papers/WR1039.html