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IDCEE 2014: The Future Of International Payments: Next 5 Years - Michael Kent (CEO and Founder @ Azimo)

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Michael founded the digital payments business Azimo in 2012 and serves as the company’s CEO. Primarily focused at the world 200m+ economic migrants, the business allows customers to send money from any Internet connected device to 198 countries fast, secure and at very low cost.

Prior to Azimo, he co-founded the Small World Financial Services Group, building the company up, via a series of 14 acquisitions, to be Europe's largest offline money transfer provider with turnover in excess of $4bn pa.

He is also an active Angel investor with investor and advisory roles in number of UK based fin-tech businesses.

Before becoming an entrepreneur he worked in the financial services practise at Accenture and held senior M&A roles at WPP and News Corp. He holds an MA from Cambridge University and an MBA from INSEAD.

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IDCEE 2014: The Future Of International Payments: Next 5 Years - Michael Kent (CEO and Founder @ Azimo)

  1. 1. The Future of International Payments
  2. 2. Michael • Mergers & Acquisitions for WPP and News Corp • MBA from INSEAD • Accenture & ADL About me… Azimo – Founder (2012 – Present) • World most comprehensive digital payments business: 198+ countries • Backed by eVentures, Greycroft and TA Ventures ($10m+ capital) • Payment advisor in PE and consulting industry Small World – Founder (2005 – 2012) • Inception to Top 10 offline global money transfer business • 18 Countries, 8.4 m pa transactions and $4.5 billion per annum volume • Raised $50m+ equity and debt funding.
  3. 3. Payment Networks Money Transfer Ops Digital Wallets FX Brokers Protocols Telcos Payment Processors International Payments Ecosystem (Simplified) Hint: it’s very complicated Internet Giants eCom Retailers Messenger Banks StartUps
  4. 4. The Volume and volume of cross-border payments are vast and growing fast
  5. 5. Global and EU consumer remittance flows are huge and growing at 10% Market Volumes Global $550bn pa European $102bn pa USA $50bn pa Top European Volumes Germany $15bn France $12bn Italy $10bn Spain $10bn UK $8bn Highly fragmented Western Union c. 15% share
  6. 6. Largest remittance market in region: one third Russia, one third EU and one third ROW x9+ 5%+ GDP $1bn “The true size, including unrecorded formal and informal flows, is believed to be significantly larger”
  7. 7. Macroeconomic Opportunity = 3 Global Megatrends Internet and Mobile Ubiquity Bitcoin and the blockchain The Rise of Social
  8. 8. Internet and Mobile Ubiquity Bitcoin and blockchain The Rise of Social
  9. 9. 5.6 Billion Smartphone Subscriptions by end of 2019 Ukraine • 90% Mobile • 31% Smartphone (100% up YoY)
  10. 10. Mobile drives financial inclusion: Case Study
  11. 11. Internet and Mobile Ubiquity Bitcoin and the blockchain The Rise of Social
  12. 12. “There’s going to be an opportunity over the next five years or so to pick any industry and rethink it in a social way… we think that every industry is going to be fundamentally re-thought and designed around people.”
  13. 13. World Map of Social Networks – July 2014
  14. 14. There are 1.3bn+ Facebook users with huge populations in both send and receive countries Country Send Receive FB Users Millions % Pop FB Users 1 United States 166 53% 6 United Kingdom 33 52% 9 France 26 39% 10 Germany 25 31% 11 Italy 23 38% 13 Canada 18 53% 15 Spain 18 37% 17 Japan 17 14% 19 Malaysia 14 47% 20 Taiwan 13 57% Country FB Users Millions % Pop FB Users 3 Brazil 63 5% 4 Indonesia 59 30% 5 Mexico 51 21% 7 Turkey 38 33% 8 Philippines 32 40% 12 Argentina 30 29% 14 Thailand 20 48% 16 Colombia 18 26% 18 Bangladesh 17 38%
  15. 15. WhatsApp has 600m Active Users Now
  16. 16. FB Messenger payments are coming soon…
  17. 17. Social has huge dimension to add to payments Marketing Social New Support Channel Identity/ KYC Broadcas Social Proof t
  18. 18. Social for Identity: KYC and Compliance YES MAYBE NO Velocity Blacklist / PEPs/ Sanctions Blacklist / PEPs/ Sanctions Device ID Social Profile
  19. 19. Internet and Mobile Ubiquity Bitcoin and the blockchain The Rise of Social
  20. 20. The block chain and distributed general ledger has the potential to change everything Predictions • Wholesale impact will happen Protocols first • Anonymity will be removed (Bitcoin too sullied to survive) • Consumer wallet adoption will be limited Stellar
  21. 21. Azimo is the Re-Imagination of Cross Border Consumer Payments 9% 2% Then Now Expensive, Inconvenient and High Exception Low Cost, Easy, and Efficient
  22. 22. Disrupt the $500bn money transfer industry by focusing on the customer and using technology to bring down prices. Build a $1bn business. Our mission
  23. 23. 3,762 The scale and reach of the Azimo Platform Corridors 300,000+ Payout Locations Largest digital only network 5,000,000,000 Customers Reachable Via Cash Payout and Direct to bank account services 6 Payout Methods 73 Currencies 198+ Receive Countries
  24. 24. Operating model: simplifying the complex multi-relationship remittance processes To Mobile (Wallet Compliance Risk Engine Blacklists Internet, Cash Deposit, Debit Card, APM Failover Monitor Acqrs/Gatewys TopUp) Mobile Application Internet Application Automated KYC, Compliance, Risk To Cash Home Cash Delivery Bank Network To Account Bill/Healthcare Payments Funding Alt Payments API SFTP Transaction Engine Application Layer Marketing, Reporting and CRM System Global Network Live Fee & FX Margin Pending Multi Channel Support Outbound Comms Deep Analytics Real time CPC, GDN Social, Affiliate, ATL
  25. 25. Disbursement To Mobile (Wallet Leveraging new technology Compliance Risk Engine Blacklists Risk and Compliance Funding Internet, Cash Deposit, Debit Card, APM Failover Monitor Foreign Exchange Acqrs/Gatewys TopUp) Mobile Application Internet Application Automated KYC, Compliance, Risk To Cash Home Cash Delivery Bank Network To Account Bill/Healthcare Payments Funding Alt Payments API SFTP Transaction Engine Application Layer Marketing, Reporting and CRM System Global Network Live Fee & FX Margin Pending Marketing and Multi Channel Support Outbound Comms Deep Analytics Real time CPC, GDN Social, Affiliate, ATL CRM Reporting
  26. 26. Traction - Weekly Visitors Period Jan. 2013 – July 2014 Up to 7x More traffic
  27. 27. Traction - Transactions Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Up to 10x More transactions
  28. 28. *Estimated Traction - Volume Up to 14x More Volume Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14*
  29. 29. Enabling Global Commerce
  30. 30. “If the transaction costs on remittances worldwide were cut from where they are today at around 10% to an average of 5%.... …it would unlock $15bn a year in poor countries”
  31. 31. Population: Adults 5.4 Billion Population: Banked 2.3 Billion Target 2.1 Billion
  32. 32. International Payments are where it’s at…  Massive and Fast Growing Market Opportunity  Next stage in the evolution of digital: money  Slow legacy players = disruption potential  Room for new $1bn companies  Potential to change the world for the better
  33. 33. www.azimo.com hello@azimo.com

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