MONYFON The Evolution of Money

Transforming the Wireless Paradigm Mobile Money Transfers will be a trillion dollars by 2012. “ The movement of capital, information, people and culture are converging to create un-paralleled and powerful transformations in the global marketplace.” – Marcelo Suarez-Orozco

Mobile Money Transfers will be a trillion dollars by 2012.

Facts Six Billion people on Planet Earth. Most of them have no access or need for the formal banking system. Four Billion Mobile phones in the world by 2010. Mobile Phones outnumber ATMs by 2000/1 . The world is changing, technology is evolving, and money is undergoing an evolution.

Six Billion people on Planet Earth. Most of them have no access or need for the formal banking system.

Four Billion Mobile phones in the world by 2010.

Mobile Phones outnumber ATMs by 2000/1 .

The world is changing, technology is evolving, and money is undergoing an evolution.

Borderless Money Transfers According to the Aite Group, worldwide remittances reached $369 billion in 2007 and are expected to grow by an 8 percent CAGR through 2010

Why Mobile? Expands the accessibility of remittances and dramatically lower fees, particularly for low denomination amounts, while enhancing value to mobile operators through share of fees, SMS traffic and customer loyalty. Position the mobile operator community as leading the way in helping these poorer migrant workers, and in so doing secure public and government recognition

Expands the accessibility of remittances and dramatically lower fees, particularly for low denomination amounts, while enhancing value to mobile operators through share of fees, SMS traffic and customer loyalty.

Position the mobile operator community as leading the way in helping these poorer migrant workers, and in so doing secure public and government recognition

Expand The Market GSMA forecasts global remitance market to expand from 380B USD in 2007 to one trillion US dollars by 2012 with the expansion of mobile money services.

GSMA forecasts global remitance market to expand from 380B USD in 2007 to one trillion US dollars by 2012 with the expansion of mobile money services.

Mobile Wallet Mobile Wallet The Mobile Wallet enables the provision of banking services to those traditionally excluded from banking facilities. These services can be provided both in-market and cross-border and include: Cash loading Cash withdrawal P2P payments Bill payment International money transfer How it works The mobile wallet account is topped-up via a prepaid voucher and/or SMS message Alternatively, a person can top up another’s mobile wallet via a P2P transfer The customer uses the wallet to pay bills and withdraw cash at designated money agents.

Mobile Wallet

The Mobile Wallet enables the provision of banking services to those traditionally excluded from banking facilities. These services can be provided both in-market and cross-border and include:

Cash loading

Cash withdrawal

P2P payments

Bill payment

International money transfer

How it works

The mobile wallet account is topped-up via a prepaid voucher and/or SMS message

Alternatively, a person can top up another’s mobile wallet via a P2P transfer

The customer uses the wallet to pay bills and withdraw cash at designated money agents.

Benefits of P2P Transactions Increase money flow due to higher number of micro-transactions (10-25 USD due to lower transaction costs). Safer than cash. Creates microbanking and jobs as the entrepreneurs begin to seek opportunities Create Social Finance Networks with micro lending opportunities.

Increase money flow due to higher number of micro-transactions (10-25 USD due to lower transaction costs).

Safer than cash.

Creates microbanking and jobs as the entrepreneurs begin to seek opportunities

Create Social Finance Networks with micro lending opportunities.

Current Method for Transfers

Mony$Fon Method

M-Wallet No Need for Cash & Credit Cards One Phone many uses.

Microtransfers Send Small Sums of Money Better control of spending.

Send Small Sums of Money

Better control of spending.

Country Example Colombia Large Expatriate Population >3.3M High Percentage of GDP is remittance based Mostly cash based economy with few participants in formal banking system. Large informal underground economy creates a large opportunity for P2P banking using m-wallets Social Finance Network Opportunity

Colombia

Large Expatriate Population >3.3M

High Percentage of GDP is remittance based

Mostly cash based economy with few participants in formal banking system.

Large informal underground economy creates a large opportunity for P2P banking using m-wallets

Social Finance Network Opportunity

COLOMBIA Market GDP 256B USD Remitances from expats 4.9B USD Transfer fees, costs ~10% Market size 490M USD

GDP 256B USD

Remitances from expats 4.9B USD

Transfer fees, costs ~10%

Market size 490M USD

Remesas y la Diaspora Colombiana

Remesas de El Exterior Banco Central de Colombia

Bancarización por Regiones en Colombia

Cobertura Bancaria en Colombia

Puntos de Banca no Tradicional

Host Country Remitances can be collected at possible partners including gas stations, local food markets, lottery sales sites etc… SMS transfers can replace cash. Create microenterprise in host country, Microlending & Microbanking.

Remitances can be collected at possible partners including gas stations, local food markets, lottery sales sites etc…

SMS transfers can replace cash.

Create microenterprise in host country, Microlending & Microbanking.

Hurdles Security Government Regulations Anti Money Laundering Laws Create Customer Confidence Overcome 100 years of Western Union branding.

Security

Government Regulations

Anti Money Laundering Laws

Create Customer Confidence

Overcome 100 years of Western Union branding.