Simprox M Pod Introduction


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A brief introduction to the next generation of Mobile Banking Technologies that will lead the way in electronic payments and processing through out the mobile industry.

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Simprox M Pod Introduction

  1. 1. Mobile Payment Services June 2009 1
  2. 2. Mobile payment p p y prerequisite q Amid the excitement and hype surrounding the emergence of yp g g mobile Payments, to achieve critical mass, launching a mobile payment service in countries with pre dominant prepaid customers would reduce issues of customer acceptance and experience. p p A large population base, geographically dispersed and lack of infrastructure would make mobile payment services appealing as it will lower transaction cost. A consumer bbase with multiple bank accounts and th ith lti l b k t d the inconvenience of visiting a bank branch and paying bills. 2
  3. 3. 3 main issues with mobile payments p y 1. Who owns the customer? Telco or Bank? 2. Can it work on all handsets? 3. Is SMS secured? 3
  4. 4. 3 major reasons why mobile payment is not working j y p y g 1. Who owns the customer? Is it the Bank or the Telco? • The potentially lucrative business of mobile payments is waiting for banks and telecom operators to agree on each one's role and possible revenue flow in the future. Technology for paying with mobile phones by just flashing them near reading equipment in stores or in public transport is ready, and consumers have appreciated the ease of its use in trials y, pp around the world. . • The never ending struggle to determine who owns the consumers g gg wallet will go on till one party ends being a service provider (a utility provider per se) and another party being the custodian of the consumers wallet in which the natural choice is the bank. 4
  5. 5. 3 major reasons why mobile payment is not working j y p y g 2. Is there a ubiquitous payment solution for existing as well as future handsets? The ideal situation for all financial institutions is to have a mobile banking / payment services that can cover all handsets, includes roaming and at the lowest possible cost. S ibl t Several attempts h l tt t have b been made t t and d to try d provide such a solution; • WAP or 3G mobile payment services which unfortunately are handset dependent. Data charges are also very expensive. • J2ME applications that can be uploaded into the handset. Unfortunately this brings the issue of software maintenance and updates. What about future handsets? • A SIM card with digital identity for secure payment services. An services innovative idea however consumers might be reluctant to change their SIM as it entails transferring across vital contact and data. 5
  6. 6. 3 major reasons why mobile payment is not working j y p y g 3. 3 Is current SMS banking secured? The current answer is NO! • Telco’s can view both MO and MT. Current solution offering does not p provide end to end security for all SMS. It is also not to the telco’s benefit y to invest significantly into end to end security for SMS as there is no business model to justify this investment. 6
  7. 7. Introducing Simprox’s“mPOD” g p mPOD is a simcard-based service that provides easy migration for both retail and corporate accounts to a mobile payment channel. It does not require any registration with the telco’s and enables b k t own each i di id l simcard h bl banks to h individual i d hence controlling the wallet. Convenient Easy Adoption Send and receive payments No change of handset, sim anytime you want by using or even network. No 3G or your mobile phone WAP connection needed anywhere, anytime Secured S d Cheap to deploy Payment messages are No infrastructure or encrypted and money application cost to the bank deposited directly into or consumer issuing bank account 7
  8. 8. mPOD embedded chip security p y Confidentiality P i C fid ti lit / Privacy • 2 level encryption for OTA transmission providing end to end data encryption security. y y Identification & Authentication • mPOD DNA algorithm provides a private digital signature unique to each individual • Enable multifactor authentication option for bank and end-user’s, ensuring high level of authentication assurance Encryption E ti • Encryption capability non reliant on mobile processor • Scalable to WAP,3G,USSD and NFC • Messages are encrypted with TDES 192-bit encryption • Unique encryption key for every embedded chipset 8
  9. 9. Market comparison p 9
  10. 10. Simprox payment system architecture “CAN USE GSM NETWORK ONLY OR BOTH GSM & IP” 10
  11. 11. Potential top 5 mobile payment services p p y Mobile Banking Remittance Prepaid Top- Top-up m-Commerce Bill Payment 11
  12. 12. Target market segment g g 12
  13. 13. Deployment overview p y 13
  14. 14. Summary y No cost to the bank • mPOD sim can be issued free based on agreed business model • No application, deployment or customization cost • Revenue share model hence no risk to bank bottom line • Increase mPOD issuance = increase floats and cheap source of funds Reduce bank’s cost to serve bank s • Low cost delivery channel without large CAPEX investment • Two way interactive banking without expensive branches y g p • Reduce OPEX cost by reducing cash and cheque handling New easy t use services N to i • Compliments existing ATM and Internet Banking investments • Wide range of new services such as Top-up’s Ticketing etc Top-up s, 14
  15. 15. Summary y Alternative Channel for Merchants • Instant Clearance, Payment happens in real-time • There’s no need to mess around with bad cheques • No waiting for bank cheque clearance clearance. • Removes all risk of cash-collection handling • Cost savings with low electronic payments rates Convenience for Consumers • No need to find a CDM/CQM or branch to deposit payments • Present mobile bills directly to their mobile for payment. • Direct payment via mobile from anywhere, anytime Guaranteed Settlement by Banks G t d S ttl tb B k • Secured as Wallets are owned by issuing bank •AAccounts are fully insured b participating b k t f ll i d by ti i ti bank 15
  16. 16. Proposed business model p Revenue share model to reduce bank’s exposure to OPEX and CAPEX d No application, deployment or customization cost to the pp p y bank Cost of mPOD sim is dependent on the number of customer acquired. (Price ranging from USD 15 to 25) mPOD sim can be offered free based on a pre agreed customer acquisition plan, go to market strategy and the number of mPOD issued Simprox will undertake jointly with BAY to acquire merchants 16
  17. 17. Thank you… you 17