How to get the informal sector to switchfrom cash to mobile money? Yaron Assabi firstname.lastname@example.org yaronassabi
Hidden Agenda Ø Why consumers want mobile service at lower fees and with personal benefits based on usage Ø Cash is not king, it is dangerous - bad for the environment and expensive Ø Mobile: the ideal platform for micro-payments Ø Relevant technology can change behaviour Ø Small change to make a big difference
Our Vision“ A world where everyone, no matter who they are or where they live, can gain easy ‘mobile’ access to affordable basic financial services to improve their lives and raise their standard of living.’
Critical Success FactorsØ The informal business sector is primarily cash based across AfricaØ Mobile Money integration and mCommerce is not easy for a merchant and therefore should be simplified via software that gives access to multiple payment options or CSP ( Commerce Service Provider) $5&11#-$F)&1$"1)#- ($&-#$."*34$&3.$()"/?.$1)&1$0)&34#)8$F)$3"1GØ On Device App that is cross platformØ Security , Device Management and remote wipingØ Vertically focused app for SME providing the same service as a standard POS but on the mobile device with smart SaaS based features & reportingØ Usability & Quality Management
Cash is NOT King it is Dangerous and Expensiveü Have you ever bought a Nando’s meal in Nigeria ?ü Africa is primarily a cash based economy due to vast dispersed geography it is not economical to have a large branch network ( e.g. 2/3 of Namibia is desert)ü The mattress is still a major safe deposit box – it is expensive and dangerousü Violent crime statistics will drop once we migrate to electronic money in Africa and it should therefore be a high priority.ü Electronic money will have a positive impact on our environment. ( eliminate carbon emission on travel , printing of money etc..)ü There was a time when Banks stopped reporting incidents as there were too many -they were worried about consumer confidence – if Banks could spend less on security, costs will drop and they could focus on service
Mobile is the ideal platform for micropayments ü Mobile Networks cover most populated areas and therefore are ideal for enabling mobile commerce and payments ü Pre Paid wallet is equivalent to a current account ü It is easier to top up airtime remotely and keep currency electronically vs. cash. ü A Mobile network is designed for micro billing ( per second billing ) whereas credit cards R15 minimum transactions. ü The world is moving towards pay per use –” 20p to use the toilet at Paddington station “ – what happens when you do not have change?
Mobile is the ideal platform for micropaymentsü Mobile Networks cover most populated areas and therefore are ideal for enabling mobile commerce and paymentsü Pre Paid wallet is equivalent to a current account- very little credit card penetration in Africa which is an opportunity for the MNO ‘s to take the lead in Mobile App Eco Systemü It is easier to top up airtime remotely and keep currency electronically vs. cash.ü A Mobile network is designed for micro billing ( per second billing ) whereas credit cards R15 minimum transactions. Most Appsü The world is moving towards pay per use –” 20p to use the toilet at Paddington station “ – what happens when you do not have change?
Pay by Phone and control your eco foot print 9 | Touchatag |August 2009
Prefer Mobile Phone over Wallet?ü The banking and credit card industries have noticed that it takes an average of 26 hours for a user to (notice and) report a lost wallet. Yet if you lose a mobile phone, the average time to report it is 68 minutes.
Mobile Lifestyle“Give people more control over theirbanking and you’ll win their loyalty. That’sbecause mobile is not a channel so muchas a way consumers live their lives andconsequently, the way banks have toconduct their business.” Douglas Brown Senior VP Mobile Product Development Bank of America
Mobile Payment Processingà Accept credit, debit, mobile money & stored-value cards in the fieldà Software only solution – no card-swipe hardware requiredà Card information entered onto SmartFORM™ on the handsetà Immediate authorizationà Mobile receipt printing can be made available (Bluetooth® printer required)à Compliant with highest levels of industry security standardsà Eliminate cash from the system Increase Cash Flow From Shortened Receivables
Fuel /Tax Calculation & Reporting à Interface with SARS efilling à KM per L Report • Etc. à “Petrol card like “ integration à Electronic driver logs à Provide valuable reporting Reduce Manual Reporting Costs
Customer Benefits T ransfoReduce Expenses p ro d u rm o u à Complete more transactions per day ct i n n r into y ovatio à Complete transactions quicker our m n à Reduce mPos costs leade arket à Ensure accuracy rship! à Eliminate paper-based reportingIncrease Cash Flow à Increase market share, customer service & revenue à Optimize inventory levels à Increase revenue per merchant à Faster & more accurate invoicingImprove Safety/Security à More affordable à Faster response times
SecurityØ Security is always a consideration when implementing a POS solution.Ø The primary concerns are employee access to registers, adherence to security standards, & securing the saved transaction record in the database through compliance with data protection standards.Ø When migrating to a mobile POS environment, the concerns are the same.Ø The mobile device will operate within a mobile data network so capturing customer payment data and transmitting using 3G network is inherently risky.Ø The Payment Card Industry Data Security Standards (PCI-DSS) have specific provisions and additional processes that must be implemented in order for a retailer to be allowed to mobile payments .Ø The connection should use strong encryption through HTTPS and should adhere to the PCI-DSS standard protocols to manage the transaction.Ø Merchant / Employee authentication to the mobile device should be robust and tracked through to the transaction level.Ø Once the transaction is complete or cancelled, the system should delete the transaction record from memory only available on SaaS environment for recall.
Business Value g Real-‐<me knowledge ar ke0n Targeted adver<sing ile M Mob Enhanced brand loyalty vice ustomer Ser Know your customers Mobile C Know their preferences Know your customers Give them more of Know their problems what they want Proac<ve help where needed
Why customers leave? They don’t leave because there’s a compelling reason to leave. They leave because there’s no compelling reason to stay
Use phone camera to scan image and see discounts 23 | Touchatag |August 2009
Cross Platform –Common API’s Deliver web applications to any device Reach the maximum number of users Regardless of their choice of device Browsing, Messaging, Clients, USSD… Mobiles, PDA’s, PC, Games Consoles… With minimum effort Adopt a “Write Once, Deliver Anywhere” strategy Standards based integration – W3C DIAL (XDIME) Re-use branding templates across multiple systems Automated support for new devices With high quality user experience “Optimize Up” to the capabilities of each device Take advantage of latest device capabilities Graceful fall-back for older devices Use device knowledge within applications e.g. dont offer video if the phone doesnt support it 24
Backgroundü DSG Secured exclusive rights for Africa , Middle East & Indian Oceanü US-based company with global presence that provides a full range of software testing services to customers of all sizesü Provides real-world, “in-the-wild” testing services for web, mobile, and desktop appsü Utilizes a global community of professional software testersü Not a traditional QA outsourcing or off-shoring companyü Act as extension & complement to in-house QA activities
From donor funded business models philanthropy investment In traditional two pocket thinking, the money you invest flows back to you. Giving thru philanthropy flows away, with no return. Source : Good Capital
Self sustaining business models-recyclable giving When good and capital come together, the money flows back to you after its made an impact in the world. It’s recyclable giving; more change for your buck. Source : Good Capital
Electronic channels provide full audit trail of ROI Rather than wondering " What your money is doing" in your name, you have the conﬁdence of knowing --by creating accountability for good impact, and accountability for ﬁnancial performance" " " " " " Source : Good Capital
Incentives help drive adoptionIncentives were a strong motive for younger people to sign up for mobile bankingservices, which allow them to keep track of checking and savings accounts on theircell phones. Of respondents to a survey, 40 percent of people 18 to 45 saidincentives tipped the scales when it came to picking mobile banking. SOURCE: AURIEMMA GROUP
Blended Value High Impact –10 % of PBT is re-invested back into the communityOld style social capitalIn the old style double bottom line view, the social value hides behind a spreadsheet. The new wave The total blended value becomes clear. as we acknowledge our desire for impact Source : Good Capital
Small change will make a BIG difference ü Select your community based NPO and all transactions on our platform contribute towards your charity via loyalty points . ü Round up your transaction – small change to make a big difference ü Everytime you contribute we provide you with loyalty points and account for how much good you have done for the community through the platform for personal reward and recognition and tax purposes ü M-commerce through digitalmall.com , mticketing, prepaid airtime sales ü Micro franchising – creating job opportunities- we will stimulate buisness ideas and support entrepenuers in m-government , m- health , m-learning, microfinance ( Safaricom has over 9,000 Mpesa dealers) . ü Entrepreneurship development program ü Mobile application development partner program ü Microbilling for mobile content and applications which is key to success of the eco-system