Challenges faced in the African market and solutions from Obopay

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This presentation talks about how banks has enabled to offer a multi-carrier mobile payment ecosystem that is capable of digitizing cash.

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Challenges faced in the African market and solutions from Obopay

  1. 1. Challenges Faced in the African market and<br />Solutions from Obopay<br />
  2. 2. Challenges<br />Lack of Technological Sophistication Among Customers<br /><ul><li>A large segment of the population in the MEA is not comfortable with the use of technology.
  3. 3. Service providers will need to invest in simplifying the technology and interface and in educating customers.</li></ul>Regulatory Barriers<br /><ul><li>A wide distribution network of agents is critical to success in this market, but setting up and maintaining such a network can be difficult and costly in a number of MEA countries.
  4. 4. Low start-up costs and an attractive commission structure for their network of agents will be critical for service providers as they look to develop and maintain distribution networks.</li></ul> Like us on www.facebook.com/ObopayMobilePayments<br />Corporate Website<br />
  5. 5. Challenges<br />Distribution<br /><ul><li>The regulatory framework for financial transactions via mobile phones is currently not well developed.
  6. 6. As regulations evolve, M-Payment service providers may have to comply with stricter controls.
  7. 7. ‘Know Your Customer’ requirements (to prevent money laundering, terrorism funding, etc.), which may add costs and slow adoption.</li></ul>Mandatory Requirement of Bank Accounts (by Some M-Payment Networks)<br /><ul><li>Some M-Payment service providers require customers to have a bank account, which limits the potential for services within the unbanked population, an important customer segment for growth.
  8. 8. In addition, some service providers concentrate on existing bank customers rather than going after the unbanked population ,who are most in need of services like M-Remittance and M-Money for retail purchases.</li></ul> Like us on www.facebook.com/ObopayMobilePayments<br />Corporate Website<br />
  9. 9. Challenges<br />New Know-Your-Customer (KYC) norms <br /><ul><li>Balance between convenience of use and security concerns.
  10. 10. Convenience /lowering barriers to adoption VS Security and anti-fraud controls.</li></ul>Model of high tax charges in East Africa<br /><ul><li>Usage and the sale of mobile phones. </li></ul>Low income group: <br /><ul><li>Minimum subscriber base required to make VAS services viable.
  11. 11. Operators may not invest in network upgrades thus holding back market development.
  12. 12. SMS growth - SMS traffic falls dramatically when operators close free-trial periods .</li></ul>Adequate backbone infrastructure <br /><ul><li>To support the growing subscriber base.</li></ul>Widespread illiteracy<br /><ul><li>Difficult to use even basic data services, such as SMS.</li></ul>Corporate Website<br />Follow us on http://twitter.com/Obopay<br />
  13. 13. Obopay Confidential<br />5<br />Solutions from Obopay <br />
  14. 14. Value for Banks<br />ROI is both tangible & intangible<br />Consumers are interested in <br />bank-offered mobile financial services<br />Make higher spends, more frequent spends<br />Have stronger loyalty<br />and engagement<br />Mobile browser<br />Match budget<br />to choice of <br />channels:<br />Demonstrate spending confidence arising from control<br />Text messaging<br />Opt for more products<br />Native applications<br />Cost Savings<br /><ul><li>Costs vis-à-vis branch / ATM
  15. 15. Support calls from offline customers reduces by 30-40%* (saves call cost of $3.75* in the US)
  16. 16. SMS balance & transaction alerts convert to large savings on support costs
  17. 17. Mobile has lowest support channel cost at $0.08*</li></ul>Retention & personalization<br /><ul><li>Reach offline customer base – segment with largest cost-saving potential</li></ul>Increase in CASA deposits – low-cost funds<br />Revenue from new services such as bill due alerts<br />Corporate Website<br /> Read our http://blog.obopay.com<br />
  18. 18. Obopay for Banks<br />Enabling banks to offer a multi-carrier mobile payment ecosystem that is capable of digitizing cash.<br />Market Opportunity <br /><ul><li>Person to Person transactions including domestic and cross border
  19. 19. Micro-merchants
  20. 20. Web merchants</li></ul>Need <br /><ul><li>Send money anytime/anywhere instantly
  21. 21. Load/unload funds instantly from existing accounts, cards or with cash
  22. 22. Ability to request payments from peers, clients
  23. 23. Provide small merchants a convenient way to get paid instantly
  24. 24. Cash replacement, convenience for top up & bill pay
  25. 25. Support all phone types
  26. 26. Agent distribution and cash in/out, to address limited reach of banks networks
  27. 27. Regulatory Compliance</li></ul>Deployment <br /><ul><li>Obopay is the Managed Service Provider for channel partners
  28. 28. Distributed by the banks and their channel partners</li></ul>Join us on www.linkedin.com/company/obopay<br />Corporate Website<br />
  29. 29. Value for Banks<br />Solution<br /><ul><li> Integration with online banking, MasterCard MoneySend
  30. 30. “Get Paid” tools for small merchants
  31. 31. Prepaid accounts and cards
  32. 32. Transitional/spending accounts for banked
  33. 33. Differentiated products as per customer needs and KYC norms
  34. 34. Agent management platform
  35. 35. Multi-bank, multi-carrier, multi-currency
  36. 36. Interoperability with ATM networks
  37. 37. Prepaid platform with customized program support
  38. 38. Card or no card (virtual card) options
  39. 39. Debit network integration e.g. Star / NYCE Network
  40. 40. Service access within online banking</li></ul>Future growth <br /><ul><li>Fully exploit P2P
  41. 41. Expand to un-acquired merchants acceptance
  42. 42. Person to merchant transaction through the convergence of mobile and internet
  43. 43. New segments of consumers, ability to use the mobile wallet across all types of commerce opportunities (physical proximity / remote /on-line)
  44. 44. Mobile payments also opens up the opportunities in b2b payments replacing cash and checks
  45. 45. Significantly expands the volume and value of transactions through the formal banking system and thus making them financially viable</li></ul> Like us on www.facebook.com/ObopayMobilePayments<br />Corporate Website<br />
  46. 46. Obopay for Carriers<br />Offer a wallet in a multi-bank environment<br />Market Opportunity <br /><ul><li>Offer a wallet to existing customers and new unbanked customers
  47. 47. International remittance.</li></ul>Need <br /><ul><li>Cash replacement, convenience for small & essential payments (top up, bill pay)
  48. 48. Cost and time effective P2P solution
  49. 49. Support for all phone types
  50. 50. Agent distribution and cash in/out, to address limited reach of banks networks
  51. 51. Compliance with requisite regulations</li></ul>Deployment <br /><ul><li>Direct service to consumers with carrier branding
  52. 52. Distributed through multiple multi-tier distribution agencies
  53. 53. Can be partnered with multiple banks and associations </li></ul>Obopay Confidential<br />Follow us on http://twitter.com/Obopay<br />Corporate Website<br />
  54. 54. Obopay for Carriers<br />Solution<br /><ul><li>Semi-closed prepaid instrument (bill payment, top-up)
  55. 55. Open-loop prepaid instrument including P2P, cash-in and</li></ul> cash-out as well as bank account based offerings<br /><ul><li>Agent management platform
  56. 56. Multi-bank solution
  57. 57. Interoperability with ATM networks
  58. 58. Merchant aggregation platform
  59. 59. Billpay aggregation platform
  60. 60. Mobile and web checkout for carrier app-store</li></ul>Future growth <br /><ul><li>Acquire smaller un-acquired merchants
  61. 61. Convert existing retailers as agents
  62. 62. Interoperability for consumers and merchants
  63. 63. Customer retention & churn reduction
  64. 64. Higher ARPU from existing customers
  65. 65. Future m-commerce possibilities and payment needs arising out of location based services
  66. 66. Payment to carriers for value added services using cash rather than prepaid will improve third party VAS products cooperation through a more equitable revenue share</li></ul> Read our http://blog.obopay.com<br />Corporate Website<br />
  67. 67. Obopay for Associations<br />Be the key stakeholder in enabling mobile payments<br />Market Opportunity <br /><ul><li>Person to Person domestic and cross border transactions
  68. 68. Enable Micro-merchants
  69. 69. Enable base of users that can pay web-merchants
  70. 70. Enable every card holder to be a merchant with very light enrolment
  71. 71. Two factor authentication to reduce fraud risk</li></ul>Need <br /><ul><li>Send money anytime/anywhere instantly
  72. 72. Load/unload funds instantly from existing accounts, cards or with cash
  73. 73. Ability to request payments from peers, clients
  74. 74. Provide small merchants a convenient way to get paid instantly
  75. 75. Cash replacement, convenience for top up & bill pay
  76. 76. Support all phone types
  77. 77. Agent distribution and cash in/out, to address limited reach of banks networks (In certain geographies)
  78. 78. Regulatory Compliance</li></ul>Deployment <br /><ul><li>Obopay is a Managed service provider for channel partners
  79. 79. Service distributed by the banks and channel partners </li></ul>Join us on www.linkedin.com/company/obopay<br />Corporate Website<br />
  80. 80. Obopay for Associations<br />Solution<br /><ul><li>Instant money transfer to anyone
  81. 81. “Get Paid” tools for small merchants
  82. 82. Prepaid accounts and cards
  83. 83. Transitional/spending accounts for banked
  84. 84. Differentiated products as per customer needs and KYC norms
  85. 85. Agent management platform
  86. 86. Multi-bank solution
  87. 87. Interoperability with ATM networks
  88. 88. Bill Pay, Top Up solution
  89. 89. International remittance</li></ul>Future growth <br /><ul><li>Fully exploit P2P by creating a network effect
  90. 90. Expand to un-acquired merchants acceptance
  91. 91. Person to Merchant transaction through the convergence of mobile & Internet
  92. 92. Enables every mobile money user to withdraw money from an ATM (even without a card)
  93. 93. Enables every POS to become a cash-in and cash-out point</li></ul> Like us on www.facebook.com/ObopayMobilePayments<br />Corporate Website<br />
  94. 94. Obopay for Handset Manufacturers<br />Monetize Mobile Money with Easy Discoverability<br />Market Opportunity<br /><ul><li>Leveraging customer relationships
  95. 95. Increased ARPU, new revenue channel
  96. 96. Win new customers, reach new segment, market differentiator
  97. 97. Multi bank – Link to bank Accounts
  98. 98. Deep Association Support – VISA/MC</li></ul>Need <br /><ul><li>Cash replacement, convenience for top up & bill pay
  99. 99. Cost and Time effective P2P solution
  100. 100. Support for all phone types
  101. 101. Agent distribution and cash in/out, to address limited reach of banks networks
  102. 102. Compliance with regulations</li></ul>Deployment <br /><ul><li>Offer a direct service through multiple banks and leverage carriers as distribution partners
  103. 103. Distributed through handset manufacturers distribution network
  104. 104. Partnered with wholesale or retail banks
  105. 105. Can be carrier agnostic</li></ul>Obopay Confidential<br />Follow us on http://twitter.com/Obopay<br />Corporate Website<br />
  106. 106. Obopay for Merchant, Gateways, Acquirers<br />Solution<br /><ul><li>Mobile merchant “Client” for small merchants
  107. 107. Back-end API for large merchants to integrate e-pos, web checkout
  108. 108. Informal merchant (Person to merchant's phone number)
  109. 109. Formal merchant setup with settlement to prepaid account or bank account
  110. 110. Merchant category codes
  111. 111. Merchant segmentation with differential pricing
  112. 112. Mobile and Web Checkout for Carrier App-store
  113. 113. Agent management platform
  114. 114. Multiple acquirer bank solution
  115. 115. Support for multiple processors
  116. 116. Allows merchants to serve walk-in customers for bill-pay, top-up and on-line ticketing (cash paying)
  117. 117. “Get-Paid” widgets that the merchants can deploy on web-sites and social networking sites.
  118. 118. Mobile and Web based merchant console for transaction inquiry, reconciliation and reporting
  119. 119. Merchant Account Management, MDR setup</li></ul>Future growth <br /><ul><li>Acquire smaller un-acquired merchants
  120. 120. Convert existing retailers as agents
  121. 121. Interoperability for consumers and merchants
  122. 122. Ability to support resume payments
  123. 123. Payment to carriers for value added services using cash rather than prepaid will improve third party VAS products cooperation through a more equitable revenue share</li></ul> Read our http://blog.obopay.com<br />Corporate Website<br />
  124. 124. Thank You<br />www.facebook.com/ObopayMobilePayments<br />http://twitter.com/Obopay<br />http://blog.obopay.com/<br />www.linkedin.com/company/obopay<br />

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