Vodafone Money Transfer – putting mobile at the centre of money transfer

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  • Point 1 – Tim told the team story about this one (I can’t tell you whether it was true!) Point 4 – People do this - massive peak over Christmas. Transaction volume up approx 50% Point 5 – Many users transfer money in this way. A ph.d was written about M-PESA which showed this was happening. Point 6 – Pay bill functionality is active with KPLC, we can find customer numbers on Monday if you like. Point 7 – After the election violence Concern Worldwide used M-PESA to disperse aid to rural villages who had lost their houses / livelihoods and who were suffering hardship. Full story here - http://www.youtube.com/watch?v=GvY9pHl5AbE
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  • Its not about technology, its about customer service
  • Vodafone Money Transfer – putting mobile at the centre of money transfer

    1. 1. Vodafone Money Transfer – putting mobile at the centre of money transfer John Maynard 23 th October 2009
    2. 2. <ul><li>Your mother is sick but has no money to pay for hospital fees? </li></ul><ul><li>You’ve broken down in the middle of nowhere and have no cash to pay a mechanic? </li></ul><ul><li>You run a busy shop on your own but you need to pay a supplier? </li></ul><ul><li>It’s Christmas Eve and you’ve forgotten to send a friend a gift? </li></ul><ul><li>You work in the city but support your family in the countryside? </li></ul><ul><li>You run a fleet of lorries, and want to give subsistence allowance to your drivers on a per-day basis? </li></ul><ul><li>A charity needs to disperse aid directly to people suffering hardship? </li></ul>What if…
    3. 3. What is Vodafone Money Transfer ? <ul><li>Money transfer by mobile phone </li></ul><ul><li>No bank account* required by subscribers </li></ul><ul><li>Vodafone holds a trust account in a bank against which VMT issues e-money </li></ul><ul><li>Cash In /Out at local shops “VMT Agents” </li></ul><ul><li>POS device is a cheap mobile phone with special sim card </li></ul><ul><li>Can be used to make many kinds of payment </li></ul>* Subject to regulatory conditions
    4. 4. The Vodafone Money Transfer service <ul><li>FOR INDIVIDUAL CUSTOMERS </li></ul><ul><li>Money transfer by phone </li></ul><ul><li>Fast, Safe, Easy and Affordable </li></ul><ul><li>Available to anyone </li></ul><ul><ul><li>no formal bank account </li></ul></ul><ul><ul><li>no joining fee </li></ul></ul><ul><ul><li>no monthly charges </li></ul></ul><ul><ul><li>no minimum balance </li></ul></ul><ul><li>Pay As You Go charging model </li></ul><ul><li>For many types of payment </li></ul><ul><li>FOR BUSINESSES </li></ul><ul><li>New revenue stream for Agents </li></ul><ul><li>Convenient payment collection [C2B] – bills, loan repayments, purchases </li></ul><ul><li>Cost effective business payments [B2C] – salaries, loans, social payments </li></ul><ul><li>Business transaction enabler [B2B] – deliveries, staff expenses </li></ul>
    5. 5. Progression: a path of natural evolution 1. Domestic Money Transfer Simple P2P transfers Airtime purchase Cash-in/out via agents <ul><li>Leverage assets to launch in un-banked markets </li></ul><ul><ul><li>A large existing distribution network </li></ul></ul><ul><ul><li>Low incremental cost of SMS </li></ul></ul><ul><ul><li>Brand & customer base </li></ul></ul><ul><li>Work with international remittances partners, e.g. Western Union, for “funds-in” to DMT markets </li></ul><ul><li>Allow third parties to use the platform to collect and distribute payments as well as integrating with existing financial services </li></ul>2. Additional transaction services launched International Money Transfer Live with Western Union & UK Agents Salary Disbursement Live Mfi loans distribution Bill payments Live Merchant services ATM withdrawals Live Other banking integrations WIP C2B Banking integration B2C IMT
    6. 6. Our experiences so far… <ul><li>M-PESA launched in Kenya in March 2007, so far: </li></ul><ul><ul><li>7.7m Customers </li></ul></ul><ul><ul><li>12,400 Agents </li></ul></ul><ul><ul><li>Average P2P transaction size approx.$30 </li></ul></ul><ul><ul><li>Monthly value of P2P transfers approx. $266 million </li></ul></ul><ul><li>Service launched in Tanzania and Afghanistan </li></ul>The Markets
    7. 7. Kenya Stats to end Jan 2009 P2P Value since launch Ksh 103,598,314,106 P2P Value (Jan 09) Ksh 13,684,542,470 Average P2P Value per transaction Ksh 2,506 Highest daily P2P Value Ksh 616,451,916 Customers 5,478,279 Agents 7,034
    8. 8. There are many beneficial factors in creating a successful MMT environment MMT has wider benefits beyond the value created for the customer by the company… Innovative service that drives customer acquisition and provides another revenue stream Customers Market leading service which increases brand value Brand differentiation Ability to target the mass market including lower value customers Social Inclusion Increased Employment Both internal to companies and in the local markets through Agents and other supporting roles Tracking of money flows which were previously invisible Enhanced visibility of money movements
    9. 9. Its not all about technology <ul><li>Low end phones </li></ul><ul><li>Existing channels </li></ul><ul><ul><li>SMS, USSD, IVR, Web </li></ul></ul><ul><li>Transaction processing platform </li></ul>Existing technologies can be used… … this is a service not a product <ul><li>Excellent customer experience </li></ul><ul><li>Board access to the service </li></ul><ul><li>Focus on operational management </li></ul>
    10. 10. Touching lives with M-PESA…

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