Business Mobility in East Africa - by John Waibochi


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Business Mobility in East Africa - by John Waibochi

  1. 1. Business mobility in east Africa BY JOHN WAIBOCHI
  2. 2. Market Context: East Africa <ul><li>Population: 120 million </li></ul><ul><li>Mobile Subscribers: 22 million </li></ul><ul><li>Mobile Money Users: > 14 million </li></ul><ul><li>Geographical coverage: > 85% of pop. </li></ul><ul><li>Mobile Money Members: > 60% </li></ul><ul><li>Businesses using mobile services: 80% </li></ul><ul><li>Trends </li></ul><ul><ul><li>Phones improving, converging with PDAs </li></ul></ul><ul><ul><li>MPESA integration into existing financial instruments & VAS. </li></ul></ul>
  3. 3. Subscriber Growth (Millions) Revenue Growth (US$ Billions)
  4. 4. <ul><li>Only < 1,000 Bank Branches </li></ul><ul><li>But > 20,000 Mobile Payment Outlets </li></ul><ul><li>>13 million Mobile Payment Users out of over 20 Million Subscribers </li></ul><ul><li>95% of Mobile Users Agree Mobile Phones are Useful in Business </li></ul>M-Pesa Growth (Source: Safaricom)
  5. 5. The Opportunity <ul><li>Next Big Thing </li></ul><ul><ul><li>Ubiquitous use of Technology in Every Day Lives </li></ul></ul><ul><ul><li>Link every day Business Transactions to Mobility </li></ul></ul><ul><ul><li>Close the Loop to Cashless Payments </li></ul></ul><ul><ul><li>Commoditize </li></ul></ul><ul><ul><li>Replicate </li></ul></ul><ul><ul><li>Scale </li></ul></ul><ul><ul><li>Internet Trend Compressed </li></ul></ul>
  6. 6. Closing Transaction Loop Mobile Money <ul><li>Convergence of Applications, Connectivity & Payment Gateways </li></ul><ul><li>Enabling Platform for: </li></ul><ul><ul><li>M-Commerce </li></ul></ul><ul><ul><li>E-Commerce </li></ul></ul><ul><li>Application Stores & Hosted Solutions </li></ul><ul><ul><li>Consumer / Retail / Enterprise </li></ul></ul><ul><li>Transaction Processing </li></ul><ul><li>Revenue Platform for Content Providers </li></ul>
  7. 7. THE ECOSYSTEM Creation Presentation Customers Third parties A g grega tion Third parties MasterCard Third parties Third parties Third parties
  8. 8. Service Provider D atabase s SMS WAP Java www USSD Billing Service Provisioning Payment For Services Consumer MMS Delivery Of Services
  9. 9. THE PLAYERS Users Mobile Phone PDA Laptop Desktop Co-location Deliver Optimise Secure ZAP MPESA YU BANK 1 BANK 2 BANK 3 VIRTUAL WALLET PAY-PAL VISA Gateway Platforms Payments Users Developer Applications USSD / Web / WAP / SMS
  10. 10. Where we see the revolution going
  11. 11. Online mobile store
  12. 12. Online mobile store
  13. 13. Online mobile store
  14. 14. Online mobile store
  15. 15. Consumer m Gov apps
  16. 16. Retail Apps Petrol home delivery Movie tickets Funds collection Post offices: Cash in cash out agents Airtime resellers Post payments via Zap Bill payments Taxi Payments Retail Salary payments to remote employees Café/restaurant payments
  17. 17. Services Directory M-Corporate Suites M-Retail Suites App Store E-Commerce Suites M-Banking Sales Force Apps Music Tourism M-Stocks Field Force Apps Entertainment Shopping M-Rewards Surveillance Apps News & Magazines Gadgets M-Cosco (VAS) Restaurants Pictures & Videos Restaurants M-Messaging Ticketing Reference Ticketing POS Utilities POS Transport Social Travel Parking Sports Gifts Games Games 3 rd Party Apps 3 rd Party Apps 3 rd Party Apps 3 rd Party Apps
  19. 19. Revenue Models for the Entrepreneurs <ul><li>Transaction Fees </li></ul><ul><ul><li>Selling the product direct to the customers and charging a fee per transaction. </li></ul></ul><ul><li>Advertisements </li></ul><ul><ul><li>Charge corporates for ads in apps or on platform directories </li></ul></ul><ul><li>Subscription </li></ul><ul><ul><li>Regular updates at a daily/weekly/monthly fee </li></ul></ul><ul><li>On Demand </li></ul><ul><ul><li>Charged whenever use the service </li></ul></ul><ul><li>Free </li></ul><ul><ul><li>Cost absorbed by the developer </li></ul></ul><ul><li>Upsell </li></ul><ul><ul><li>Base app is free but higher versions chargeable </li></ul></ul><ul><li>Trial & Pay </li></ul><ul><ul><li>1 st number of apps use free then chargeable thereafter </li></ul></ul>
  20. 20. Recognition
  21. 21. THANK YOU 05/18/11