mPay Connect Consulting

                               Mobile Money:
                the catalyst to jumpstart emerging m...
agenda



           1.      background
           2.      what will be mobile money’s impact GDP?
           3.      why ...
background



Columbia University                           ©mPay Connect, Inc.
Institute for Tele-Information       3    ...
mobile money = mobile + digital cash




                                 Using the mobile phone as a channel
            ...
from paypal to the masai


                                                       mobile money for the unbanked




      ...
what will be the impact?



Columbia University                  ©mPay Connect, Inc.
Institute for Tele-Information   6   ...
mobile money will lead to increases in GDP
                        in emerging markets

                                 F...
GDP grows when Mobile rises

                                                    Impact on GDP
                           ...
Kenya’s mPesa Example
                                  9 million users, >$300 million/month




Columbia University      ...
why?



Columbia University                     ©mPay Connect, Inc.
Institute for Tele-Information    10                  ...
mobile money stimulates levers of GDP
            GDP = Consumption + Investment + Government Spending + Net Exports

    ...
why?
                             mobile money = 4 forces at work


                                      Mobile          ...
Mobile




          first ubiquitous 2-way data transmission device

                                      Mobile Subs
  ...
Mobile
                reaches those currently with
      no access to financial services dependent on cash
              ...
Electronic                   remote transmission replaces
                             human transport time for cash

    ...
Electronic
                            less friction than cash
                     enables ability to transact more often...
Nature of
Electronic
                     digitization and ability to track=
              less “leakage” and crime, more ...
Infra-
       structure
                                    mobile payments =
                                 enabler of ...
Infra-
       structure
                                    building blocks =
                                 enabler of ...
Infra-
       structure
                            new industry & innovations spur
                                invest...
Capital                              formalizing capital
                                 increase in savings, credit


  ...
mobile money = catalyst to GDP growth in emerging markets
                     GDP = Consumption + Investment + Government...
challenges


           1.     Lack of other infrastructure
           2.     Government & regulatory policies
           ...
Questions?


                                           Menekse Gencer



                                 mPay Connect Co...
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Mobile Money: Catalyst to Jumpstart Emerging Markets

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This presentation was given by mPay Connect at Columbia University for the summit on "Macroeconomics of Mobile Money" by the Columbia Institute for Tele-Information on April 2, 2010. Special thank you to contributors to the discussion on the LinkedIn Group: Mobile Payments Series - mPay Connect.

Published in: Economy & Finance

Transcript of "Mobile Money: Catalyst to Jumpstart Emerging Markets"

  1. 1. mPay Connect Consulting Mobile Money: the catalyst to jumpstart emerging markets Special “Thank You” to contributors from LinkedIn Group: Mobile Payments Series – mPay Connect Menekse Gencer Mail: mgencer@mpayconnect.com Skype: meneks80 April 2, 2010 Company: www.mpayconnect.com
  2. 2. agenda 1. background 2. what will be mobile money’s impact GDP? 3. why will it have this impact? 4. recap Columbia University ©mPay Connect, Inc. 4/2/2010 Institute for Tele-Information 2 2 mgencer@mpayconnect.com April 2, 2010
  3. 3. background Columbia University ©mPay Connect, Inc. Institute for Tele-Information 3 3 mgencer@mpayconnect.com April 2, 2010
  4. 4. mobile money = mobile + digital cash Using the mobile phone as a channel to conduct financial services Columbia University ©mPay Connect, Inc. 4/2/2010 Institute for Tele-Information 4 4 mgencer@mpayconnect.com April 2, 2010
  5. 5. from paypal to the masai mobile money for the unbanked + = Columbia University ©mPay Connect, Inc. 4/2/2010 Institute for Tele-Information 5 5 mgencer@mpayconnect.com April 2, 2010
  6. 6. what will be the impact? Columbia University ©mPay Connect, Inc. Institute for Tele-Information 6 6 mgencer@mpayconnect.com April 2, 2010
  7. 7. mobile money will lead to increases in GDP in emerging markets Future GDP Cartogram Columbia University ©mPay Connect, Inc. 4/2/2010 Institute for Tele-Information 7 7 mgencer@mpayconnect.com April 2, 2010
  8. 8. GDP grows when Mobile rises Impact on GDP 1.5% of 10% increase of Mobile Subscribers in Emerging Markets Increase in GDP 1.2% 1.0% 0.6% 0.5% 0% Average India Columbia University Emerging Market ©mPay Connect, Inc. Institute for Tele-Information 8 mgencer@mpayconnect.com April 2, 2010 Source: Vodafone, World Bank
  9. 9. Kenya’s mPesa Example 9 million users, >$300 million/month Columbia University ©mPay Connect, Inc. Institute for Tele-Information 9 mgencer@mpayconnect.com April 2, 2010
  10. 10. why? Columbia University ©mPay Connect, Inc. Institute for Tele-Information 10 10 mgencer@mpayconnect.com April 2, 2010
  11. 11. mobile money stimulates levers of GDP GDP = Consumption + Investment + Government Spending + Net Exports New Infrastructure, More Education More businesses, Greater Investment More net exports & Gov’t Spending New Jobs & Income Increases in Consumption, Savings, Taxes Columbia University ©mPay Connect, Inc. Institute for Tele-Information 11 11 mgencer@mpayconnect.com April 2, 2010
  12. 12. why? mobile money = 4 forces at work Mobile Electronic = = Data Efficiencies Ubiquity Infrastructure Capital = = Foundation Catalyst Columbia University ©mPay Connect, Inc. Institute for Tele-Information 12 12 mgencer@mpayconnect.com April 2, 2010
  13. 13. Mobile first ubiquitous 2-way data transmission device Mobile Subs $5+ Billion Columbia University ©mPay Connect, Inc. Institute for Tele-Information 13 13 mgencer@mpayconnect.com April 2, 2010
  14. 14. Mobile reaches those currently with no access to financial services dependent on cash World Economic Pyramid Banks 500 Mill *>$20k/yr Unbanked, 2 Billion Mobile *$3260 to $20k/yr Opportunity: 1.7 Billion in Today 2012 4 Billion 2012 Source: CGAP *<$3260/yr or <$9/day Source: World Resources Institute (*Individual Annual Income: 2005 USD Purchasing Power Parity) Columbia University ©mPay Connect, Inc. Institute for Tele-Information 14 mgencer@mpayconnect.com April 2, 2010
  15. 15. Electronic remote transmission replaces human transport time for cash eliminate “shoe leather costs” Columbia University ©mPay Connect, Inc. 4/2/2010 Institute for Tele-Information 15 15 mgencer@mpayconnect.com April 2, 2010
  16. 16. Electronic less friction than cash enables ability to transact more often smoothing transaction = money received at time of need Columbia University ©mPay Connect, Inc. 4/2/2010 Institute for Tele-Information 16 16 mgencer@mpayconnect.com April 2, 2010
  17. 17. Nature of Electronic digitization and ability to track= less “leakage” and crime, more tax revenue Columbia University ©mPay Connect, Inc. Institute for Tele-Information 17 17 mgencer@mpayconnect.com April 2, 2010
  18. 18. Infra- structure mobile payments = enabler of new industries mHealth, off-grid energy, trading Mobile Payments Columbia University ©mPay Connect, Inc. 4/2/2010 Institute for Tele-Information 18 18 mgencer@mpayconnect.com April 2, 2010
  19. 19. Infra- structure building blocks = enabler of new services Marketing Mobile Payments Identity Management Columbia University ©mPay Connect, Inc. 4/2/2010 Institute for Tele-Information 19 19 mgencer@mpayconnect.com April 2, 2010
  20. 20. Infra- structure new industry & innovations spur investment = new jobs over 140+ mobile payments initiatives Columbia University ©mPay Connect, Inc. Institute for Tele-Information 20 20 mgencer@mpayconnect.com April 2, 2010
  21. 21. Capital formalizing capital increase in savings, credit informal to formal financial services Columbia University ©mPay Connect, Inc. Institute for Tele-Information 21 21 mgencer@mpayconnect.com April 2, 2010
  22. 22. mobile money = catalyst to GDP growth in emerging markets GDP = Consumption + Investment + Government Spending + Net Exports New Businesses & Net Exports Greater Investment New Jobs & Income & Gov’t Spending Increases in Consumption, Savings, Taxes Columbia University ©mPay Connect, Inc. Institute for Tele-Information 22 22 mgencer@mpayconnect.com April 2, 2010
  23. 23. challenges 1. Lack of other infrastructure 2. Government & regulatory policies 3. Lacking capital markets 4. Fragmented / Lack of interoperability Columbia University ©mPay Connect, Inc. Institute for Tele-Information 23 23 mgencer@mpayconnect.com April 2, 2010
  24. 24. Questions? Menekse Gencer mPay Connect Consulting • Wharton MBA ‘98, Harvard BA Economics ’93 For more information mgencer@mpayconnect.com www.mpayconnect.com www.twitter.com/mpayconnect Columbia University ©mPay Connect, Inc. Institute for Tele-Information 24 mgencer@mpayconnect.com April 2, 2010

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