Mobile Payments: What global lessons can we bring back to the U.S.?


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This presentation was given by Menekse Gencer at the Commonwealth Club of San Francisco on July 23, 2012 as part of the Mobile Payments Series Initiative(TM) produced by mPay Connect. There were approximately 90+ attendees. For more information regarding the consulting services of mPay Connect, please visit: or contact us at: The audio recording of this presentation can be found here:

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  • All: What lessons can we take from these case studies here in the U.S. regarding policy questions, use cases, business models, consumer value proposition, adoption and education, platform questions, and operations?Gunnar Camner: You were instrumental in launching Tigo Cash in Ghana from Agent setup, to product development and marketing. You are now focusing your efforts on the U.S. market. What lessons can you bring from your experience in Ghana that apply to mobile payments here in the U.S.?Jon Squire: Your company Corfire is the U.S. subsidiary of a South Korean firm. South Korea has seen a lot of traction in mobile/contactless payments. What lessons can CorFire take from South Korea when launching here in the U.S.? What are key initiatives CorFire is doing?Camille Busette: You once ran Government Relations for PayPal and have subsequently worked on mobile payments regulatory projects in emerging markets and on financial services for the unbanked in the U.S. In your new role as Head of Financial Education at the Consumer Protection Agency, what lessons can you bring to the U.S. from your international work in mobile payments for the unbanked?Chuck Davidson: I saw a recent quote in the press saying that the Starbucks Mobile Payments App is the “gold standard” in the market. You are the man who was behind the Starbucks mobile payments app and now head of product for GoPago. What are some lessons you learned when launching Starbucks, were their any mistakes in the beginning, and why do you believe it’s been such a huge success? What lessons will you take back to your new role at GoPago?
  • Mobile Payments: What global lessons can we bring back to the U.S.?

    1. 1. Mobile Money: mPay ConnectWhat global lessons can we bring back to the U.S.? Click to Hear Audio Recording of Presentation Presented by Menekse Gencer of mPay Connect, Inc. July 23, 2012 Twitter: #MPC0723 Twitter: mpayconnect LinkedIn Group: Mobile Payments Series – mPay Connect ©mPay Connect, Inc. 1
    2. 2. mPay Connect ©mPay Connect, Inc.2
    3. 3. Connecting the world, one mobilepayment at a time mPay ConnectmPay Connect Experience North America. Mobile Payments strategy for 3 of 4 top US BanksIn Mobile Payments industry since 2005 © mPay Connect, Inc. ©mPay Connect, Inc. 3
    4. 4. Global advances in mobile money mPay Connect 110+ money mobile systems deployed >40 million users mPesa has 20 million users who transferred $500 million a month during 2011Source: “ICT4D: Maximizing Mobile” World Bank Report July 2012. ©mPay Connect, Inc. 4
    5. 5. How they are different? mPayments priorities differ based on market mPay Connect Mobile Money Mobile Financial Mobile Value-Added Mobile Payments Mobile Payments Services Services Mobile Banking: Other Products Deposit AccountB2B B/G 2C C2B P2P Bill Pay RDC Transactional Informational Credit Savings PFM Insurance Promotions• Replace • Salary • Retail payments at • Domestic Money • Utility bills • Bill Pay • Account Balance • Micro-finance • Micro-savings • Micro-insurance •Advertisingcash in disbursements store POS (contactless Transfer • Small businesses • Brokerage • Transaction History • Loans • Savings Acct • Insurance •Loyaltysupply chain • Expense payments) • International • People • Remote Deposit • Real-time •Couponing Reimbursements • Mobile remote Remittances Capture Alerts •Promotions/Offers and per diem purchases (e.g. eBay or • Pensions, digital goods) benefits, and • Micropayments on conditional cash mobile network transfers operator bill • mPOS – mobile phone © Copyright 2009, 2010 mPay Connect, Inc. All rights reserved. as POS reader ©mPay Connect, Inc. 5
    6. 6. How is the U.S. different?Socio-economic and infrastructure impact mPayments mPay Connect U.S. /  Developed Banking Infrastructure  Low Penetration of Banking & Other Infrastructure  Regulatory Restrictions  Low income per capita  High PC/Internet Penetration  Low PC/Internet Penetration  High Smartphone Penetration  High Feature Mobile P hone Penetration  Multi-player banks, Multi-player MNOs  Money Flows  C2B most revenue  Money Flows  Remittances  High percentage of banked population  High percentage of unbanked population  Credit card usage legacy  Domestic emigration  Sophisticated merchant infrastructure  Remote populations  Immigrant population  Cash based societies  Legacy of online payments  Socio-political instability Source: Arthur D. Little Analysis & mPay Connect Analysis ©mPay Connect, Inc. 6
    7. 7. How are they similar?Similar concerns and constructs mPay Connect Payer Provider Payee  Value Proposition  Regulations  Value Proposition)  Awareness  Market Dynamics  Used by Payer  Accessibility  Type of Payment  Ease of Adoption  Accepted by Payee  Trust/Safe/Secure  Relevant  Distribution/Technology  Easy to Use ©mPay Connect, Inc. 7
    8. 8. Unique U.S. Environment leads to the“Wild West” mPay Connect Market Segmentation Incomm, BlackHawk Unbanked Western Union GreenDot Merchants Segments Youth Customer Twitter Facebook ? Apple ISIS Amazon ? Banked Google PayPal Square ACH Providers Banks Amex, MC, Visa Other Industries P2P Bill Pay Online Commerce Retail (Social, Mobile) Payments Categories ©mPay Connect, Inc. ©mPay Connect, Inc. 8
    9. 9. In the U.S. the battle for mobile payments at retail isfought in adjacent areas of loyalty, promotions, andadvertising mPay Connect Interactive Mobile Device Payments Transactions Revenues Increased Customer Account Data VAS Revenues Advertising, Promotions, Loyalty Revenues Behavioral, Location, and Note: Starbucks hits 20 million Search Info mobile payments in 2011, fueled by loyalty programs ©mPay Connect, Inc. 9
    10. 10. Our Panel Today: What global mobile paymentslessons can we bring back to the U.S.? mPay ConnectPANELIST: PANELIST: PANELIST: PANELIST: MODERATOR:Camille Jon Squire, Gunnar Camner, Chuck Davidson, Menekse Gencer,Busette, PhD,Assistant CMO CorFire and Previously Head of Head of Consumer Founder of mPayDirector, Office of formerly Head of Mobile Money at Tigo in Products at GoPago Connect ConsultingFinancial Education - Payments at Ghana. Joining GSMA and formerly launched and formerly DirectorConsumer Financial mFoundry to work with open mobile payments app at of BusinessProtection Bureau and standards in Mobile Starbucks Development PayPalformerly Head of Financial Services. Mobile, NorthGovernment Relations Americaat PayPal ©mPay Connect, Inc. 10
    11. 11. Questions? mPay Connect For more information, contact: LinkedIn Group: Mobile Payments Series – mPay Connect Twitter: mPayConnect ©mPay Connect, Inc. 11