Presentation by mFino on "Interoperability - Realizing the Full Potential of Mobile Money" at Mobile Money Expo, Lagos Nigeria in February 2013

2. Mobile Money Market Scenario in Africa
Current Mobile Money Deployments in the Continent
Close to 80 Mobile Money
Deployments in Africa
Contributed to more than
4.5 % of the Sub Saharan
Africa’s GDP or $32
Billion
80% of worlds mobile
money transactions
happen in East Africa
The industry accounts for
350 million jobs
High mobile phone
adoption – 1 Billion
people in Africa with 700
million connections
Source: Africa Review - December 30th 2012, GSM Association

3. Current Market Overview in Nigeria
Mobile Money agents currently stand at
3000
Expected to grow to 50,000 by 2015
2012 Mobile Money transactions: N228
million
Expected Mobile Money transactions by
2015: N151 Billion
Non Store shopping increased from N62
Million in 2011 to N77.5 billion 2012
Non store shopping expected to grow by
N658 Billion by 2015
26 million banked out of 167 million
Nigerian population
Source: All Africa 3rd January 2013

4. Interoperabilityis the ability of
diverse systems and organizations, to work with
each other, in the present or the future, without
any restricted access.

5. Customers
Limited universe to do m-Commerce
True value of Mobile Money not unleashed
Policy Makers
Struggling to understand regulatory approach
Businesses
Would want to recoup investments made
Apprehensive of government intervention, to give
up advantage
Interoperability - Current Scenario

6. Current Scenario – Only On-Network Transactions
Cross Network Mobile Money
transactions not possible
On-NetworkMobileMoney
transactionsarepossible
On-NetworkMobileMoney
transactionsarepossible

7. Why Interoperability ?
• Subscribers are restricted to on-network
transactions,
• Agents are exclusive to one mobile
money service provider
• Subscribers are limited to accessing their
mobile money account only from one
SIM
SMS usage before July
98
SMS usage post April 99 after SMS interconnection between operators
Has Interoperability been
achieved in the Mobile
industry….??
Yes, cross network SMS is an
example of interoperability success
Source: Mobile Data Association

8. With Interoperability Cross Network Transactions are possible
Cross Network Mobile Money
transactions are possible
On-NetworkMobileMoney
transactionsarepossible
On-NetworkMobileMoney
transactionsarepossible
Payment
Switch

9. Interoperability – An Enabler
Product Innovation
• Remittances and Airtime top-ups are 95% of the Mobile money transactions in
the world
• Invite banks, micro finance institutions, third parties to use Mobile Money infra
• Make a greater range of products and services available to customers
Enable payments to and from the unbanked
• Distribution of cash remains expensive and insecure
• Need of industry collaboration to enable bulk electronic payments
• Ease payment acceptance from completely unbanked population
Replace cash with e-money for day to day transactions
• Still the most dominant - money transfer followed by complete cash out
• Establishing interoperability allows operators more frequent and proximate
transactions
• Lesser reliance on cash, provide convenience and increase relevance of e-money

10. INTEROPERABILITY brings in
SYNERGY where interconnections
with external parties can create greater
value for customers and service
providers than a single mobile money
service provider can create alone.

11. Options to Achieve Interoperability Across Mobile
Payments Services

12. Platform Level
Interoperability
Agent Level
Interoperability
Customer Level
Interoperability

13. Benefits of Interoperability
• Interoperability will benefit service providers by
expanding the pool of customers
• Increased revenue through transactional volumes
• Minimises the need for retail agents to have cash, which is
costly to move around between different agents.
• Interoperability could serve as a primary lever by which to
reduce redundant costs and expand access

14. Interoperability Use Case 1
Abike, a fruit vendor in the local market in Abuja
has an MTN mobile money account. After a busy
day, Abike secures her days’ takings by paying
into her mobile wallet via the agent in the town.
Since there is no MTN agent near the market,
Abike goes to an Airtel agent who helps her in
depositing her money into her MTN mobile
money account.

15. Interoperability Use Case 2
Ameerah, an Airtel mobile money account
subscriber wants to send money to her friend
Abike, an MTN mobile money account
subscriber. Interoperability makes it easy for
Ameerah to send money to her friend who is
on a different network (cross-network)
Chalapathi Rao Immidi
Director of Business Development
mFino