Mobile Payments Series Event #2
TM
Linked In Group: Mobile Payments Series – mPay Connect
Is there REALLY a market for mobile payments in the US?
Menekse Gencer
Mail: mgencer@mpayconnect.com Mobile Payments
Skype: meneks80 Event #2 @ Google
Company: www.mpayconnect.com October 5, 2009

About the Mobile Payments Series
Event #2
Objectives
• To educate professionals on topics around mobile payments
• To provide networking and a hub for business development
• To spur innovation in this industry
• To bridge the gap between the US with the rest of the world in this field
Mobile Payments Series, Event #2 mPay Connect, Inc.
Oct. 5, 2009 2 mgencer@mpayconnect.com

Background
Menekse Gencer, Founder of mPay Connect
• 16 years in Wireless, High Tech, and Financial Services
• PayPal Mobile: Led Business Development. Closed PP’s first mobile deal (Sprint “Send Money”)
• mPay Consulting: US prepaid mobile operator, SKTelecom, Citi, Wells Fargo, EARN
• Board Member of Mobile Money Africa, Conference Speaker MMT Dubai, Philippines
• Wharton MBA ‘98, Harvard BA Economics ’93
• Triathlete, Bay swimmer, Local singer, Dive Master, Avid traveler
For more information
mgencer@mpayconnect.com
www.mpayconnect.com
www.twitter.com/mpayconnect
Mobile Payments Series, Event #2 mPay Connect, Inc.
Oct. 5, 2009 3 mgencer@mpayconnect.com

Is there REALLY a market for mobile payments
in the US?
1. Mobile Payments defined
2. What makes the U.S. different from
other markets for mobile payments?
3. Panel discussion
Mobile Payments Series, Event #2 mPay Connect, Inc.
Oct. 5, 2009 4 mgencer@mpayconnect.com

Agenda
1. Mobile Payments defined
2. What makes the U.S. different from
other markets for mobile payments?
3. Panel discussion
Mobile Payments Series, Event #2 mPay Connect, Inc.
Oct. 5, 2009 5 mgencer@mpayconnect.com

What is:
Mobile Payments (as it relates to the US)?
Mobile Financial Services
Mobile Payments Mobile Microfinance
Microfinance Mobile Banking
Mobile Banking
P2P C2B B2B Loans Transactional Informational
• Mobile Money Transfer • Mobile online • Replace cash in • Disbursement • Mobile bill payment • Alerts
• Domestic or International (e.g. eBay or ringtones) supply chain • Repayment • Brokerage • Account balance &
Mobile remittances • At store • Savings history
(proximity payments) • Insurance
Mobile Payments Series, Event #2 mPay Connect, Inc.
Oct. 5, 2009 6 mgencer@mpayconnect.com

Agenda
1. Mobile Payments defined
2. What makes the U.S. different from
other markets for mobile payments?
3. Panel discussion
Mobile Payments Series, Event #2 mPay Connect, Inc.
Oct. 5, 2009 7 mgencer@mpayconnect.com

US has no significant commercial mobile payments
deployments today as is found elsewhere
Mobile Payments Systems
10 mil
Japan
Kenya
Philippines
5 mil
Active Users
Philippines
1 mil
S. Korea
S. Africa Tanzania
2000 2005 2007 2008
Launch Date
Mobile Payments Series, Event #2 mPay Connect, Inc.
Oct. 5, 2009 8 mgencer@mpayconnect.com

US #1 in payments revenues
…but has historically lagged in mobile penetration
(due to high Internet/PC penetration)
Payments Revenues $ Bill (2007) Mobile Penetration (2005)
Mobile Penetration 2005
300
U.S. 70%
250
200
150 282 275
Italy 124%
237
100
50 60 60 Hong Kong 123%
0
US Europe Asia LatAm ROW
Source: McKinsey Global Payments Map Source: ITU
(LatAm data is for 2006)
Mobile Payments Series, Event #2 mPay Connect, Inc.
Oct. 5, 2009 9 mgencer@mpayconnect.com

The U.S.: #1 in credit and debit card usage
…don’t cards work well enough already?
• By 2010, US cardholders = 181 million
(Source: Census Bureau)
• Average American = 5.4 cards. 1:10 > 10 credit cards
(Source: Experian marketing insight snapshot, March 2009)
• In 15 years, debit card 1%  50% non-cash transactions
(Source: Tower Group, August 2009)
• 84% of students have credit cards
(Source: Sallie Mae, April 2009)
• Today, 50% of college undergraduates have 4 or more credit cards
(Source: Sallie Mae, April 2009)
Mobile Payments Series, Event #2 mPay Connect, Inc.
Oct. 5, 2009 10 mgencer@mpayconnect.com

… but 70 million Americans are unbanked and
under-banked and pay mostly in cash
Mobile Payments Series, Event #2 mPay Connect, Inc.
Oct. 5, 2009 11 mgencer@mpayconnect.com

…and many of the unbanked remit
(and have mobile phones)
US = #1 country in remittances sent
U.S. 2006 Demographics Total in USA 34,860,000
Mexico 9,600,000
13% China 1,900,000
Philippines 1,700,000
India 1,610,000
87% Vietnam 1,200,000
Cuba 1,100,000
Source: World Bank
Immigrants Source: United Nations, International Organization for Migration, US Census
Only 25% of remitters to Mexico have a bank account!
Source: Orozco, Manuel (2004)
Mobile Payments Series, Event #2 mPay Connect, Inc.
Oct. 5, 2009 12 mgencer@mpayconnect.com

Overall, cash and check are still used a LOT
(although decreasing in usage)
US Payment instrument growth rates – 2005-2010 Number of transactions
Billions
CAGR, 2005-2010 2005 2010
-5% Check* 32 24
73% 57%
-2% Cash 132 116
Total 2% 225 244
Credit Card 4% 21 26
ACH 8% 13 19
Other** 12% 2 3 * Refers to checks paid
and excludes checks
converted to ACH for
Sig. Debit 16% 15 31 clearing. Also
includes travelers
checks and money
PIN Debit 17% 8 18 orders
** Includes EBT, EMT,
book entry transfers
Prepaid 19% 3 7 and wire transfers
Source: McKinsey
Payments Map
Mobile Payments Series, Event #2 mPay Connect, Inc.
Oct. 5, 2009 13 mgencer@mpayconnect.com

…for parking meters, coffees, and subways
…but does that a market make?
Mobile Payments Series, Event #2 mPay Connect, Inc.
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In the U.S., is there a NEED…
is there a MARKET for mobile payments?
?
Mobile Payments Series, Event #2 mPay Connect, Inc.
Oct. 5, 2009 15 mgencer@mpayconnect.com

Agenda
1. Mobile Payments defined
2. What makes the U.S. different from
other markets for mobile payments?
3. Panel discussion
Mobile Payments Series, Event #2 mPay Connect, Inc.
Oct. 5, 2009 16 mgencer@mpayconnect.com

Today’s Panel
Arjan Schutte Dion Lisle Dhidha Timona
Associate Director, Executive VP President
CFSI Citigroup Shaka Mobile
Financial Services for Unbanked Growth Ventures & Innovation MVNO for Africans in US
Scott Shaw Gabriel Torres Menekse Gencer, Moderator
President Vice President, Bus. Dev. Founder
Aliaswire Affinity Global Services mPay Connect Consulting
Mobile payments platform Platform for mobile remittances Bus. Dev. & Product Strategy
Mobile Payments Series, Event #2 mPay Connect, Inc.
Oct. 5, 2009 17 mgencer@mpayconnect.com

Final Thoughts: U.S. = Collection of Segments
Understand segment’s needs
for alternative methods of payments
Average U.S. Consumer Segmenting the U.S.
Do they need mobile payments? population & their needs
Retail
iPhone Users credit
card
users
Unbanked
remitters
Students
Public Transit Users
Mobile Payments Series, Event #2 mPay Connect, Inc.
Oct. 5, 2009 18 mgencer@mpayconnect.com

Thank you!
To be notified of future events, join
Linked In Group: “Mobile Payments Series – mPay Connect”
To download video of this event: http://mpayconnectevent2.eventbrite.com/
Menekse Gencer: mgencer@mpayconnect.com
www.mpayconnect.com
www.twitter.com/mpayconnect
Mobile Payments Series, Event #2 mPay Connect, Inc.
Oct. 5, 2009 19 mgencer@mpayconnect.com

To download the video of this presentation and
panel event
www.mpayconnect.com
Mobile Payments Series, Event #2 mPay Connect, Inc.
Oct. 5, 2009 20 mgencer@mpayconnect.com