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Mobile Financial Services
 

Mobile Financial Services

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    Mobile Financial Services Mobile Financial Services Presentation Transcript

    • eBIZ.mobility Mobile Financial Services- How Operators Earn Revenue Jeremy Kagan Founder and CEO jeremy.kagan@ebizmobility.com Ecommerce Everywhere © 2010 eBIZ.mobility LTD Proprietary and Confidential
    • eBIZ.mobility Agenda • Primer on Mobile Financial Services • Examples and Case Studies – Mobile Money Ecosystems – International Remittance – Internet Commerce – Gambling – Mobile Banking • Success Factors and Challenges • Limiting Risk While Increasing Reward Infinite Ecommerce. No Borders. No Barriers. June 2010 eBIZ.mobility LTD Proprietary and Confidential 2
    • eBIZ.mobility Mobile Financial Services • P2P Transfers • Mobile Wallets- Stored value / Prepaid cards • Payment Ecosystems • Bill Payment • Mobile Purchasing NFC and Remote • Salary Disbursement • Remittances- cash and airtime • Mobile Banking (banked, unbanked) It is not just about Premium SMS anymore! Infinite Ecommerce. No Borders. No Barriers. June 2010 eBIZ.mobility LTD Proprietary and Confidential 3
    • eBIZ.mobility Infinite Ecommerce. No Borders. No Barriers. June 2010 eBIZ.mobility LTD Proprietary and Confidential
    • eBIZ.mobility High Volume Revenue Share Opportunity • Over 4 billion handsets worldwide, growing to 5.8 billion by 2013 (growth residing mostly in the emerging markets) • Mobile Wallet (Domestic)- $4.8B in direct revenues and $2.9B indirect revenues for telcos in emerging markets (GSMA) • 85% of world population is unbanked (Gartner) • International Money Transfer (remittances)- $420B/yr - $600B including black market (World Bank) • Fees 2%-15% depending on sending/receiving country (World Bank) • Mobile Financial Services will yield $7.9 billion in revenues for MNOs by 2012 (GSMA) • International Airtime Transfer- 5% of Top-Up revenue, $8B transferred • Alternative payments 7% of online commerce world growing to 15% • 457M Mobile Banking Users by 2015 (Payments CM Research – Advanced Payments Report 2009) Infinite Ecommerce. No Borders. No Barriers. Confidential & Proprietary 2010 June eBIZ.mobility LTD Proprietary and Confidential 5
    • eBIZ.mobility Global Advanced Payment Forecasts- Relative Volumes Source: PaymentsCM Research – Advanced Payments Report 2009 Infinite Ecommerce. No Borders. No Barriers. June 2010 eBIZ.mobility LTD Proprietary and Confidential
    • eBIZ.mobility Mobile Money- Now is The Time Ecosystems are Forming Why has it taken so long? - Somebody had to take the first step- and it is a BIG one - Asia- Transportation Authorities mass NFC infrastructure spurred MNOs - Philippines- prepaid top-ups led to Mobile Payments, remittances, p2p - Africa- MNO deployments led to Mobile Wallet, remittances, p2p, top-ups What is different now? Baseline Infrastructure is in Place - Successful deployments give basic learning curve on commercial models - NFC deployments are starting in Europe - 90% unbanked rates prevent PayPal from satisfying web payment needs of many markets Infinite Ecommerce. No Borders. No Barriers. June 2010 eBIZ.mobility LTD Proprietary and Confidential
    • eBIZ.mobility Mobile Wallet • A virtual wallet for subscriber • May link to: • Cash- Stored Value • Credit cards Loyalty Card • Prepaid cards • Gift and loyalty cards • Identity cards Credit Card / • Bank account Debit Card • May be based in: • Server Identity Card • Handset App Cash • Contactless (NFC) Card Check Book Prepaid Airtime Voucher Wallet shown courtesy of Trivnet Ltd. Infinite Ecommerce. No Borders. No Barriers. June 2010 eBIZ.mobility LTD Proprietary and Confidential
    • eBIZ.mobility Case Study- Mobile Money Ecosystems In Service • M-Pesa Kenya (Vodafone)- 70% of users were previously banked- this is a disruptive offering, 2 Million transactions/day (May 2009), 10% of Kenya’s GDP flowed thru in 2009 • Zain- Zap Holdings Subsidiary- 16.5M active customers- introducing new people to financial services • SMART Money Philippines- 125,000 cash-in agents, can support airtime sales of $0.06 • G-Cash Philippines- 18,000 cash-out points • Oi Paggo Brazil- 250K Users, 70K merchants Infinite Ecommerce. No Borders. No Barriers. June 2010 eBIZ.mobility LTD Proprietary and Confidential
    • eBIZ.mobility Case Study- International Remittances • Average domestic cash deposit $20 • Average mobile remittance transfer $200 • International money transmittance currently costs $5–$87 for a remittance amount of USD$500 - World Bank • Mobile is more convenient and lower cost • Mobile Remittance Corridors are Already in Commercial Service where mobile wallet ecosystems exist: – Kenya – Philippines (An estimated 10 million Filipino migrant and contract workers remit $17 billion annually via traditional methods) – Poland & Eastern Europe – Mexico Infinite Ecommerce. No Borders. No Barriers. June 2010 eBIZ.mobility LTD Proprietary and Confidential 10
    • eBIZ.mobility London, March 2010: Western Union Advertising its IMT service to M-Pesa Kenya Infinite Ecommerce. No Borders. No Barriers. June 2010 eBIZ.mobility LTD Proprietary and Confidential
    • eBIZ.mobility Web Commerce Today- Limited by Credit Cards United States Rest of World 40% of U.S. and 90% of Rest of World Internet Users Do Not Have a Credit Card (Yankee Group) Infinite Ecommerce. No Borders. No Barriers. June 2010 eBIZ.mobility LTD Proprietary and Confidential
    • eBIZ.mobility Case Study- Web Payment for Digital Content • Facebook, MySpace, Bebo Applications – Mafia Wars – My Empire – Guitar Hero – Spare Change • App Stores – iTunes – Ovi • i-mode Japan • Micropayments – Boku – Zynga – Ping.ping Infinite Ecommerce. No Borders. No Barriers. June 2010 eBIZ.mobility LTD Proprietary and Confidential 13
    • eBIZ.mobility Case Study- Mobile Payment for Online Gambling • Mobile payment offers a quick and easy-to-use payment solution for casino players to instantly deposit funds to their balance on-the-move • Launched mobile payment method Aug 2008 in a regulated market- UK • Started with licensed online/mobile casino Wild Jack Casino: Web: http://www.wildjackcasino.com WAP: http://mobile.wildjackcasino.com • Initial transaction amount set to £10 • Due to success in Nov 2008 increased transaction amount to £15 • In 2009 increased transaction amount to £30 • Expanded service to All Slots Casino (fully licensed) Web: www.allslotscasino.com WAP: http://m.allslotscasino.com • 70% of all payment attempts are carried out by players who subscribed to a different mobile network operator • Since the mobile payment system was launched, the operators experienced zero disputes or claims by players Infinite Ecommerce. No Borders. No Barriers. June 2010 eBIZ.mobility LTD Proprietary and Confidential 14
    • eBIZ.mobility Case Study- Mobile Banking • Convenience application for the developed world • 2009 survey conducted by Palmer Research* • 2/3 of offline consumers contact their financial institution once a week or more through traditional bank channels. • 1/2 use the bank call centre or interactive voice response (IV) • Each call centre transaction costing an average of US$3.75 • Each IVR transaction costing an average of US$1.25 • Mobile banking estimated US$0.08 per transaction • Strong operational incentive for Banks to push the mobile channel. *http://www.onwindows.com/Articles/Mobile-banking-moving-beyond-the-branch/4951/Default.aspx Infinite Ecommerce. No Borders. No Barriers. June 2010 eBIZ.mobility LTD Proprietary and Confidential 15
    • eBIZ.mobility Goal- Payment Standard Alongside Visa/MC Infinite Ecommerce. No Borders. No Barriers. June 2010 eBIZ.mobility LTD Proprietary and Confidential 16
    • eBIZ.mobility MNOs Have Strong Assets for Mobile Money Services • Branding • SIM Card • Distribution Network • VAS Marketing • Billing Relationships • Customer care infrastructure Infinite Ecommerce. No Borders. No Barriers. June 2010 eBIZ.mobility LTD Proprietary and Confidential 17
    • eBIZ.mobility Collaboration is Key to Success- “Fuel the Wallet” Ubiquity • Wide Merchant Network • Wide Agent Network • Consistent User Experience Regulation • AML/CFT- Anti-Money Laundering/Combating Funding of Terrorism • Know Your Customer- KYC • eMoney rules Overcoming Challenges and Making Money • Partner with a MFS Hub Provider and Financial Institution • Deploy open technology platforms and interfaces • Partner with Merchant Acquirers • Follow successful 90/10 rev share models to attract merchants! Infinite Ecommerce. No Borders. No Barriers. June 2010 eBIZ.mobility LTD Proprietary and Confidential 18
    • eBIZ.mobility Mobile Money Limits Risk and Liability • Wallet provides “Chinese Wall” - No direct relationship between operator and merchant- operator can monetize consumer’s cash & payments without direct exposure • Non-Reputable User Authentication- Operators currently have 2 factor and even 3 factor user authentication systems available which make transactions legally non-reputable • Consumer Trust- Consumers use the trust relationship with their Operators who maintain their private financial information as their “online identity keepers” • Reduces Theft- Cash collection by businesses and consumers in remote regions are more secure if done electronically Infinite Ecommerce. No Borders. No Barriers. June 2010 eBIZ.mobility LTD Proprietary and Confidential 19
    • eBIZ.mobility The Right Hub Facilitates Success Open Web- Advertising & Age Subscriber Interaction Restrictions Payment JAVA apps Web for i-gaming Mobile Operator Payment Interfaces Real-Time Clearing Immediate availability of funds Guarantee Finality of Transaction B2B Client Support Real-time Identity Management $ Merchant/Agent Authentication Transaction Verification Content / Service Provider Bank Payment Authorization Delivery Platform Settlement & Reporting Administration & 24/7 Operations Reporting & BI Food Mart Point of Sale Payment Cash-Out Wholesale Clearing P2P Top-Up Public & Settlement Payments & Remittance Transit Transfers Infinite Ecommerce. No Borders. No Barriers. June 2010 eBIZ.mobility LTD Proprietary and Confidential
    • eBIZ.mobility About eBIZ.mobility We provide alternative payment solutions for internet, mobile, and electronic payments. Product Suite: Target Markets: - OneTouch Online Purchasing® Digital Merchants - OneTouch Cashier™ Online & Mobile Casinos Underlying Technology (patent pending): - Federated Payment™ Payment Service Providers - Applet based payment App Stores - RMG™ (Roaming Mediation Gateway) MNOs Copyright © 2007-2010 by eBIZ.mobility LTD. All rights reserved. eBIZ.mobility and the eBIZ.mobility logo, OneTouch Online Purchasing and the OneTouch Online Purchasing logo, Federated Payment, and RMG are trademarks or registered trademarks of eBIZ.mobility LTD. All other trademarks belong to their respective owners. The information contained herein is subject to change without prior notice. Infinite Ecommerce. No Borders. No Barriers. June 2010 eBIZ.mobility LTD Proprietary and Confidential 21
    • eBIZ.mobility What do you want to purchase today? Jeremy Kagan Founder and CEO +972 2 999 3881 jeremy.kagan@ebizmobility.com Ecommerce Everywhere © 2010 eBIZ.mobility LTD Proprietary and Confidential