2012 03 14 mobile payment challenge

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A presentation at Mobile Money World conference in Johannesburg; looks at it from point of view of what the user is expected to sacrifice. Also examines success factors behind Mpesa in Kenya that do not apply elsewhere.

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2012 03 14 mobile payment challenge

  1. 1. The real challengein mobile payments By Arthur Goldstuck (Twitter: @art2gee) Mobile Money World, 14 March 2012
  2. 2. Mobile moneycomes in many shapes
  3. 3. Mpesa PayD eWallet EyenzaPayWizardISPCASH Celpay etc …
  4. 4. Africa  -­‐  Economy  
  5. 5. But so doesmoney itself
  6. 6. Money Market - ShopriteCashSend - ATMInstant Money - SparMzansi Money Transfer - PO
  7. 7. Does the cellphonechange money?
  8. 8. Data starting to cannabilise SMS 3% 2% 5% 8% 16% 12% Content/music 76% 77% Data / Internet access SMS/MMS Voice calls 2009 2010 Data as a percentage of total mobile spend has grown from 5%-8% in 2010. 16-18 yr almost doubled, but massive increases seen in 35+ age groups.
  9. 9. Current vs. future brand usage(NB: Intentions , not actions) n=1203 Current usage % Future usage % Brand Momentum (main phone) (future / current)Nokia 51 48 (U=45, R=52) 0.95Samsung 28 12 (U=10, R=14) 0.42LG 5 2 0.37Blackberry 4 24 (U=29, R=20) 6.10Motorola 4 1 0.37Sony-Ericsson 2 3 1.31HTC 1 2 1.96iPhone (Apple) 1 3 (U=5, R=1) 4.74Other 5 5 0.97 “Mobile Consumer in SA 2011”, World Wide Worx
  10. 10. How much thelow-income SAuser spends onphone per day:
  11. 11. Africa  -­‐  Economy  
  12. 12. And everyfour days:
  13. 13. Equivalent to …
  14. 14. In one month,this is how much bread thesephone calls cost:
  15. 15. This is what you want them togive up for eachmobile payment:
  16. 16. This is what they can afford:
  17. 17. The Golden Rule:Disposable incomeis not expandableTo increasedisposable income,you must increaseincome.
  18. 18. The Payments revolution It is not a global phenomenon. Local dynamics are critical.
  19. 19. The great Mpesa gap12 success factors in Kenya not present in SA
  20. 20. 1.  High unbanked population2.  Regulatory openess3.  Dominant telco at launch4.  Population dispersal5.  Culture of remittances6.  Low cost of use7.  Bank agnostic8.  Swahili brand name9.  No paperwork10.  Quick, easy registration11.  Extensive network of outlets12.  Serving wananchi (ordinary folk)
  21. 21. And then came NFC …and the mobile industry is suddenly Captain Picard
  22. 22. Captain Picard said: “Make it so.”
  23. 23. But mobile industry can’t simply decree a global payment system.
  24. 24. One model doesnot fit all markets.
  25. 25. The killer app in mobile money: Homework
  26. 26. Thank youArthur Goldstuck(011) 7827003arthur@worldwideworx.comwww.worldwideworx.comTwitter: art2gee

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