MMT APAC Presentation
      Developing the business case for your MMT service


                                   MNO-   ...
mPay Connect Consulting

      Menekse Gencer
      • Consulting Services for clients seeking to launch mobile financial s...
Agenda


           1.Value Proposition for Key Stakeholders
           2.Different Business Models
           3.What does...
Agenda


           1.Value Proposition for Key Stakeholders
           2.Different Business Models
           3.What does...
Value Proposition for Key Stakeholders



                              MNOs                 Platforms         FIs

      ...
Agenda


           1.Value Proposition for Key Stakeholders
           2.Different Business Models
           3.What does...
MMT Value Chain Responsibilities
Note: Simplified model.
Customer acquisition, account
management, not included
          ...
MMT Models
Note: Simplified model.
Customer acquisition, account
management, not included
                                ...
Value Proposition (MNO vs. FI)
                                           for different models
Note: Simplified model.
Cus...
Agenda


           1.Value Proposition for Key Stakeholders
           2.Different Business Models
           3.What does...
What Does Interoperability Mean?
                         Mobile Money: Banked Customers
       Banks = Customer Account H...
What Does Interoperability Mean?
                   Mobile Money: Unbanked Customers
          MNOs or 3rd Parties =      ...
When is interoperability important?


             Fragmented market                                  Extending beyond MMT...
Agenda


           1.Value Proposition for Key Stakeholders
           2.Different Business Models
           3.What does...
Examples world-wide




                      MNO-              JV or          FI-
                      Driven          3...
What Model is the Right One?
                                         Workshop Exercise


                   Regulatory   ...
Thank you!


            Menekse Gencer: mgencer@mpayconnect.com
                                         www.mpayconnect....
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MMT Business Models

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This was presented in December by mPay Connect at the Mobile Money Transfer Conference in Manila

Published in: Economy & Finance, Business

Transcript of "MMT Business Models"

  1. 1. MMT APAC Presentation Developing the business case for your MMT service MNO- JV or FI- Driven 3rd Party Driven • Market Power, Brand Power, & Footprint • Regulatory environment in geography • Existing infrastructure in region Menekse Gencer Mail: mgencer@mpayconnect.com Mobile Money Transfer Conference Skype:APAC the Business Case for Your MMT Service MMT meneks80 Developing ©mPay Connect, Inc. 7, 2009 12/17/2009 1 December 1 Company: 2009 December www.mpayconnect.com MMT APAC: December 7, 2009 mgencer@mpayconnect.com
  2. 2. mPay Connect Consulting Menekse Gencer • Consulting Services for clients seeking to launch mobile financial services • Business Development, Product Strategy, Go-to-Market Strategy • Mobile Payments engagements have included: • FIs: PayPal, Citigroup, Wells Fargo • MNOs: SKTelecom, PrePaid North American MNO • Other: non-profits, platform companies • Board Member, Mobile Money Africa, Mobile Payments Series (Harvard & Wharton) • Linked in Group: Mobile Payments Series – mPay Connect mgencer@mpayconnect.com www.mpayconnect.com www.twitter.com/mpayconnect Developing MMT APAC the Business Case for Your MMT Service ©mPay Connect, Inc. MMT APAC: December 7, 2009 December 2009 2 mgencer@mpayconnect.com
  3. 3. Agenda 1.Value Proposition for Key Stakeholders 2.Different Business Models 3.What does interoperability mean? 4.Choosing the right model MMT APAC ©mPay Connect, Inc. December 2009 3 mgencer@mpayconnect.com
  4. 4. Agenda 1.Value Proposition for Key Stakeholders 2.Different Business Models 3.What does interoperability mean? 4.Choosing the right model MMT APAC ©mPay Connect, Inc. December 2009 4 mgencer@mpayconnect.com
  5. 5. Value Proposition for Key Stakeholders MNOs Platforms FIs + Revenue + Revenue - Costs - Churn + Revenue Regulators +Financial Inclusion +Socio-Economic Development ©mPay Connect, Inc. +Tracking AML/CFT Developing MMT APAC the Business Case for Your MMT Service ©mPay Connect, Inc. MMT APAC: December 7, 2009 December 2009 5 mgencer@mpayconnect.com
  6. 6. Agenda 1.Value Proposition for Key Stakeholders 2.Different Business Models 3.What does interoperability mean? 4.Choosing the right model MMT APAC ©mPay Connect, Inc. December 2009 6 mgencer@mpayconnect.com
  7. 7. MMT Value Chain Responsibilities Note: Simplified model. Customer acquisition, account management, not included Value Chain MNO Network Hold Deposits, Take Cash In Move Money for data Cross border Cash Out (Settle) transmission Forex Operational Operate Agent network Move money Hold Deposits Responsibilities Network as usual Take funds in Interest Bearing Accounts Certify Apps Convert to electronic Cross border Forex Disburse cash Regulatory Responsibilities None KYC, AML/CFT KYC, AML/CFT KYC, AML/CFT, Bank License eMoney License All requirements of banks MMT APAC ©mPay Connect, Inc. December 2009 7 mgencer@mpayconnect.com
  8. 8. MMT Models Note: Simplified model. Customer acquisition, account management, not included MMT Value Chain MNO Network Hold Deposits, Take Cash In for data Move Money Settle Cash Out transmission (Forex) FI-Led Business Models MNO as Bearer MNO Bank or Third Party Bank MNO as Agent MNO Bank or Third Party Bank MNO as Money MNO Bank Mover MNO as Bank MNO MNO-Led ©mPay Connect, Inc. MMT APAC ©mPay Connect, Inc. December 2009 8 mgencer@mpayconnect.com
  9. 9. Value Proposition (MNO vs. FI) for different models Note: Simplified model. Customer acquisition, account management, not included MMT Value Chain MNO Network Hold Deposits, Take Cash In for data Move Money Settle Cash Out transmission (Forex) MNO = Bearer None to minimal Most Revenue + *FI cost savings= reduce transactions costs by up to 99% MNO = Agent **Up to 60% transaction revenue 40% of transaction rev. + Float MNO = Money Mover Majority (transaction) Float MNO = Bank 100% (transaction + Float) ©mPay Connect, Inc. *Source: FiServe Report ** Source: MMT Africa MMT APAC ©mPay Connect, Inc. December 2009 9 mgencer@mpayconnect.com
  10. 10. Agenda 1.Value Proposition for Key Stakeholders 2.Different Business Models 3.What does interoperability mean? 4.Choosing the right model MMT APAC ©mPay Connect, Inc. December 2009 10 mgencer@mpayconnect.com
  11. 11. What Does Interoperability Mean? Mobile Money: Banked Customers Banks = Customer Account Holders Send/Receive between any Networks settle transactions among FIs mobile network Standards Bilateral Agreements Hub/Switch MMT APAC Connect, Inc. ©mPay ©mPay Connect, Inc. December 2009 11 mgencer@mpayconnect.com
  12. 12. What Does Interoperability Mean? Mobile Money: Unbanked Customers MNOs or 3rd Parties = Send/Receive money with any Customer Account Holders other Mobile Money System Standards Bilateral Agreements Hub/Switch MMT APAC Connect, Inc. ©mPay ©mPay Connect, Inc. December 2009 12 mgencer@mpayconnect.com
  13. 13. When is interoperability important? Fragmented market Extending beyond MMT: share of wallet Mobile Financial Services Mobile Payments Mobile Payments Mobile Microfinance Mobile Microfinance Mobile Banking Mobile Banking P2P C2B B2B B/G 2C Loans Transactional Informational • Mobile Money Transfer • Mobile online • Replace cash • Salary • Disbursement • Mobile bill payment • Alerts • Domestic or International (e.g. eBay or ringtones) in supply chain disbursements • Repayment • Brokerage • Account balance & Mobile remittances • At store • Pensions history (proximity payments) • Rebates ©mPay Connect, Inc. ©mPay Connect, Inc. MMT APAC ©mPay Connect, Inc. December 2009 13 mgencer@mpayconnect.com
  14. 14. Agenda 1.Value Proposition for Key Stakeholders 2.Different Business Models 3.What does interoperability mean? 4.Choosing the right model MMT APAC ©mPay Connect, Inc. December 2009 14 mgencer@mpayconnect.com
  15. 15. Examples world-wide MNO- JV or FI- Driven 3rd Party Driven ©mPay Connect, Inc. MMT APAC ©mPay Connect, Inc. December 2009 15 mgencer@mpayconnect.com
  16. 16. What Model is the Right One? Workshop Exercise Regulatory Targeted Market Assets Environment Customer Base Dynamics Flexibility? Banked or Unbanked? Dominated or Brand Trust? Perceived Risk? Existing alternatives to fragmented? Retail Footprint? banking/ payments Infrastructure? Operational abilities? New model or New service? Interoperability? Likelihood of success? new channel? New customer? Transformational? ©mPay Connect, Inc. MMT APAC ©mPay Connect, Inc. December 2009 16 mgencer@mpayconnect.com
  17. 17. Thank you! Menekse Gencer: mgencer@mpayconnect.com www.mpayconnect.com www.twitter.com/mpayconnect Linked In Group: “Mobile Payments Series – mPay Connect” Developing MMT APAC the Business Case for Your MMT Service ©mPay Connect, Inc. MMT APAC: December 7, 2009 December 2009 17 mgencer@mpayconnect.com

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