Obopay syncs Mobile payments into the Financial infrastructure


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Obopay is a global mobile payments technology company. This is a complete overview of the Mobile payment - market segment, stats, the product evolution, case studies and much more.

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Obopay syncs Mobile payments into the Financial infrastructure

  1. 1. Integrating with ExistingInfrastructure
  2. 2. Mobile Payment: Market Segments% of Payment Volume by Market Segment % of Payment Volume by Market Segment 2009-2010 2014• Mobile Money (Wireless Money): - Fastest growing in emerging markets where low bank and card usage. (mPesa, Obopay)•Digital Content (Carrier Billing) - High growth but economics (fees and payment timing) make it difficult to scale to other segments.•Retail Acceptance (NFC) - New and traditional actors providing solutions. Long roll out. (Visa, Isis, Square, Verifone)Source: NFC Value According to Juniper. Digital Value: According to Gartner. Mobile Money Value: Credit Suisse Mobile Industry Overview Obopay Confidential 2
  3. 3. Retail Electronic Payments in India 2009-2010 (RBI) No. 9A: Retail Electronic Payment Systems (in Millions) Electronic Clearing Services (ECS) Card Payments# National Electronic Total Electronic Funds TransferMonth/ Year Payments NECS/ECS (Credit) ECS (Debit) (NEFT/EFT) Credit (18.3mn Cards) Debit*(181mn Cards) 1 2=(3+4+5+6+7) 3 4 5 6 7 Number Amount Number Amount Number Amount Number Amount Number Amount Number Amount2009-10 718.16 $ 152,197 98.13 $ 26,136 149.28 $ 15,450 66.34 $ 91,002 234.24 $ 13,739 170.17 $ 5,871 Consumer Expenditure in 2010 $952 Billion Electronic Payments in 2010 $152 Billion Cash Payments in 2010 $ 800 Billion GDP in 2009-2010 was $1.430 Trillion Obopay Confidential 3
  4. 4. Obopay Has leveraged Bank and Payment Infrastructure GloballyObopay’s strong partnerships, best of breed functionality and differentiatedtechnology will enable it to begin rolling-out of its services around the world Obopay Confidential 4
  5. 5. Product EvolutionClassic P2P Initial Obopay Advanced Obopay Mobile Payment Solutions Today Obopay Obopay Obopay User User User Prepaid Card Indirect Direct Wireless Internet Prepaid Payment Payment Banks Banks Carriers Internet Card Networks Processors Merchant ATM Business Government ATM Merchant Obopay Non- Obopay Non- Obopay User Obopay User Obopay User User User Obopay Confidential 5
  6. 6. Mobile Money ServicePayment Handset Banks Telco’s Retailers Insurance Small NonProviders Business Profits Countries Capabilities India Casual P2P All phones Load, link or transact Commerce Transact or unload Kenya Multi- US network Out of Bank Bank Senegal Cash Acct Card Obopay Retail (POS E/M Obopay Cash Acct Card network and mPOS) Commerce payments +4 Very low cost model Topup, Bill Pay Mobile Check Obopay has built a unique, hard to replicate platform and mobile technology to service payment transactions across use cases, markets and geographies 6
  7. 7. Mobile Money Technology Leadership Mobile Assets Innovation Framework Universal Payments Universal Access  New use cases quickly and  Master Transaction Account/ Consistent Experience efficiently Paypal model Mastered Security  Packaging  Link/transact to bank accounts, Embedded in web and other  Branding cards, payment networks applications  Processing Rules  Create multiple options for payment arbitrage Great User experience  Collaboration with external systems  Bridge Payment ecosystems and prepaid mobile account option Mass Market Drive volume/ Create Largest Offerings profitability Network Effect Obopay Confidential 7
  8. 8. Case Study: USMarket Market  Mobile prepaid and Virtual Money opportunity  Youth and families  SME short term, longer term Retail  M-commerce  Donations Market  Send money anytime/anywhere instantly Needs  Load/unload funds instantly from accounts  Request payments from peers, clients  Text to donate from bank or card  Top up, bill pay, buy online  Vertical solutions (disbursements)Obopay Solution  Instant money transfer to anyone including direct from bank account and cardssolution  Get Paid for SME  Web and mobile checkout, Facebook widgets, Social Short codes  Prepaid accounts and cards Deployment  Mobile Money as a service for MasterCard, Banks, Insurance, Major Retailers  Domestic  Cross border to MexicoOpportunity  M-commerce, ecommerce, wallets  International Remittances  Long term retail 8
  9. 9. MoneySend InternationalObopay Confidential 9
  10. 10. Strategic Partnership : FIS Global PaymentProcessors  When : 2008 Strategic Partnership  Why FIS Global:  Largest technology provider to Financial Industry  Payment processing, online banking, bank back-office  Services 14,000 Banks  What : People Pay by Obopay  Obopay is providing its platform to FIS banks with customized branding, terms  Obopay operates the platform  How : Go-to-market  Non exclusive agreement  Distribution to community and regional banks  FIS sales force FIS and Obopay are bringing a rapid deployment solution for Mobile Money to U.S. banks Obopay Confidential 10
  11. 11. Debit network support Star & NYCE• Obopay added support for PIN-less debit and credit with STAR and NYCE.• Obopay’s suggested retail price for crediting a debit card is $.50 to $50, above $50 is 1% with cap of $1• Utility: Pay a person, the recipient gets immediate credit to their NYCE, STAR prepaid card or NYCE/STAR connected DDA. – Use case 1: transfer money to your child’s or another person’s bank account immediately – Use case 2: Collect card payments with immediate, spendable money on your prepaid card or bank account – Use case 3: Immediate funds transfer between your bank accounts immediately – Use case 4: cheap and immediate p2p payment funding Debit Network Debits as a resellerDebit card funded payments onlyprovide for cheaper… Next day settlementImmediate, spendable money Debits Debit And networks credits or Obopay Confidential 11
  12. 12. Get Paid for Business and Non-profit Donate Now Text UWCV to 48510 Obopay Confidential 12
  13. 13. Money Transfer and Social PaymentsMobile money Obopay Confidential 13
  14. 14. Case Study: IndiaMarket Market  693 MM adults, 584 MM subscribers, opportunity 41% unbanked  Annual consumer spending: $703B, 91% cash Market  Cash replacement, convenience for small & Needs essential payments (top up, bill pay)  Cost and Time effective P2P solution  Support for all phone types  Agent distribution and cash in/out, to address limited reach of banks networks  Compliance with RBI regulationsObopay Solution  EasyPay (Bill payment, top-up), EasySend (EasyPay+ transfer, cash out)solution  Agent management platform  Multi-bank solution  Interoperability with ATM and National Switch Deployment  Direct service: Mobile Money Services  Distributed through Nokia agents  Partnered with Two Retail Banks/Carrier AgnosticOpportunity Platform  Agent management platform Additions  Bill Pay, Top Up solution  Merchant platform Future  Acquire smaller un-acquired merchants growth  200,000+ Retailers as Agents  Interoperability for consumers and merchants Obopay Confidential 14
  15. 15. NEFT flow for Consumer To Server: Transaction request To Client: Status reply from the payment service. This should include the Bank and Branch name corresponding to the submitted IFSC code. The bank and branch name should be stored as part of payee. ObopayStart Money Client Money Client Money Client system Sender Customer selects “Send Customer provides Customer confirms System validates the A confirmation message Money to Bank Account” recipient name, amount, the details and details and ensures is sent to sender that the option and chooses to message and bank A/C provides his PIN to whether sender has NEFT request was send money to a new/ details based on new/ authenticate the sufficient money in his initiated existing payee existing payee. transaction account On failure a Obopay System exchanges message is sent file with the Bank to sender NEFT transaction Sender processed by Bank Success On success message is sent to sender Recipient Recipient gets a SMS when he receives money into his account Bank Account Bank Account Recipient gets direct credit to his Recipient gets direct credit to his account through NEFT and visits account through NEFT and visits the the nearest ATM to withdraw cash nearest branch to withdraw cash Obopay Confidential 15
  16. 16. NPCI Consumer Flow Obopay Confidential 16
  17. 17. ECS Consumer Flow Load Funds 2 3 1 ECS Load Obopay OPS Funds Txn FIRE Obopay DB Report User application 4 ECS load requests 5 EC Existing ECS S pro cess Process ing 6 ECS c redit s rec eived Obopay S Bank EC ed ail s /F Successful individual es cc ECS credit / Failure Su ad Successful ECS credit 8 plo 6.1 ECS Fee debit 7.1 eu (total amount) Customer SVA Fil 7 7.2 ebit CS d ual E Consumer Individ Admin 9 BSA 7.3 Console dit cre ECS Parking Account Pooled Account ee C SF (debit total successful (credit total successful r eE ECS amount from last ilu and failure ECS amount io S Fa at CECS Failure Fee Account mile credit to customer ic E from last mile credit to n tif ess 7.4 customer SVA) SVA) no cc Su 10 Successful ECS Funds load confirmation plus history and balance update FIRE ECS Refund Account OPS+MAL 7.5 application (credit total failure ECS amount to be refunded to destination account) Obopay Confidential 17
  18. 18. BSNL Solution (India) 18Obopay Confidential 18
  19. 19. Case Study: KenyaMarket Market  39 MM people, 21 MM subscribers by 2011, opportunity  80% + cash economy Market  Replacement for cash for person-to-person Needs and person-to-merchant transactions  Convenient solutions for Bill Pay, Top Up  Support for al phone types, agent distribution and cash in/out  Mobile Money part of competitive dynamics between Telecom OperatorsObopay Solution  Agent management platform, stored value account, money transfer, airtime top-up,solution account management  Viral customer acquisition (invite), Cardless ATM withdrawals, deposit at the POS  Dual language support  Mobilized bank accounts Deployment  Licensed platform with on-going revenue share  Operator distribution (YU), Partnership with Equity BankOpportunity Platform  Agent management platform Addition  Implementation experience in market with low bank penetration Future  Extension to Uganda, Congo, East Africa Growth  Inbound Remittance  Multi-Bank Obopay Confidential 19
  20. 20. Case Study: KenyaObopay Confidential 20
  21. 21. Card less ATM Cash Withdrawal Obopay Confidential 21
  22. 22. Load Unload Funds & Cash In/Out using CBS Obopay Confidential 22
  23. 23. Bulk Payment Processing (Bulk Send) Obopay Confidential 23
  24. 24. Bulk Payment Processing (Bulk Receive) Obopay Confidential 24
  25. 25. Helping Partners Drive Innovation Helping a mobile carrier - YU in Kenya to sign up consumers through 2000+ Agents in Kenya Obopay Confidential 25
  26. 26. Case Study: SenegalMarket Market  13 MM people, 4% banked opportunity  One of West Africa’s most dynamic mobile market ( 37% annual growth) Market Needs  Solution for unbanked consumers  Merchant payments (utilities, mobile, informal )  Person to person transfers  Cash in/out solutionObopay Solution  Stored Value accounts, money transfer, bill paysolution  Agent network management  Pooled account by Bank branch Deployment  Managed Service  Distribution through Société Générale branches and commercial partners network (CMS) and TIGO (Mobile Network Operator)  Société Générale and partners marketing, salesOpportunity Platform Additions  Bank agent cash–in  Localized Platform (Multiple Languages, Multiple Currencies) Future  Expansion to SSA, Eastern Europe Growth  Advanced use cases for Eastern Europe  Common operations across country hubs  Europe to Africa and Eastern Europe Remittance  Enterprise and Small Merchants Obopay Confidential 26
  27. 27. Card less ATM Cash WithdrawalObopay Confidential 27
  28. 28. Obopay Confidential 28
  29. 29. ArchitectureObopay Confidential 29
  30. 30. Universal Access SMS & HostedNFC Proto IVR Mobile API J2ME GPRSWidgets Smart Phones SIM Toolkit & USSD J2ME SMS Bearer Obopay Confidential 30
  31. 31. Agent Framework for Extending ReachSupport for Multiple Distribution Networks Regional Distributor MNO Liquidity Management Features Registration Know Your Customer Cash – In Cash-Out Viral Cash-Out ATM Card Distribution Merchant Sign Up Liquidity Management Obopay Confidential 31
  32. 32. Account model Transaction Engine P2M Association Account (e.g. Card On File) Authentication Device Info Info Real-time Direct BankInstruments Account Credit Card (e.g. Citi, Yes) Linked Transacting P2PReal-time AssociationDebit /ATM Account (s) Account AccountNetworks (Load/Unload) (Send/Receive) (e.g. MCMS) PrepaidNon real-time AccountInstruments (Card- ed/Virtual) (e.g. ACH) Program (e.g. eFunds) Personal Profile Info Info Debit /ATM Networks Obopay Confidential 32
  33. 33. Customization & integration model Consumer Agent & Consumer ConsumerConsumer Merchant Agent sMerchant & sMerchant & sMerchant Consumer Consumer Consumer Partner PartnerWeb Web Web Native GPRS J2ME/SMS WAP SMS/IVR IVR Prepaid Cards Mobile Web 5 Issuer ISO8583 On Premise Program IVR 4 Configuration SSO (SP) 6 SSO (IDP) Web Billpay with 3 Billpay Agg Localization Services Biller or Connector Customize Aggregator API 7 Payment Connectors) APIs Sockets Topup with Settle & Carrier or 2 Topup Agg Connector Reconcile Customize Aggregator Batch File Receive 8 Batch File Submit HTTP/S SMS with Carrier or 1 SMS Agg Connector Reports Customize Aggregator Batch File Submit 9 Batch File Receive Custom Obopay Environment Partner Environment Obopay Confidential 33
  34. 34. Integration Types & FI Partner Types Integration Types FI Partner TypesWeb Svcs ISO8583 Stored Value Processors Custom … PP Card Processors Direct Bank …HTTP/S Sockets … Association Networks ATM/Debit Networks … … Obopay Confidential 34