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The Next Wave of Mobile Financial Services-02


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The Next Wave of Mobile Financial Services-02 david yates

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The Next Wave of Mobile Financial Services-02

  1. 1. DAVID YATESPresident, Business Development & Innovation Mobile Update
  2. 2. WESTERN UNION: A GLOBAL REMITTER MULTICHANNEL • 445,000 cash agent locations • 20 countries with • 40 bank ABMT partnerships • 14 country partnerships for Mobile • Global partnerships with leading MNOs• US$5.2 billion revenue (2010) • Over 16,000 corridors• 200 countries and territories • $76 billion in P2P principal
  3. 3. WESTERN UNION STRATEGY FOR MOBILEPartnering with banks, mobile network operators (MNOs)or independents to enable mobile-based transactions p Partner with banks Service banked consumers using the g Western Union on mobile channel Mobile Banking Example: ABSA Bank South Africa Partner with MNOs Western Union Primary focus: unbanked consumers on Mobile Wallet Reach underserved receivers Example: Safaricom / M-PESA Kenya
  4. 4. ONE CONNECTION: ALL COUNTRIES, ALL CHANNELS SEND RECEIVE BankBank Direct Direct Accounts WU-gatewayAccounts agreement WU Core WU-Core system WU-gateway agreement Payment Payment CardsM-Wallets switch switchCards Other Other M-Wallets M Wallets
  5. 5. MNO PARTNERSHIP PRODUCTSWestern Union is the largest international branded cash in/cash outnetwork for mobile Sender uses mobile wallet as source of funds. 1 Mobile Send Receiver payout in cash cash, mobile, or bank channels Funds directed by Sender (Push or alternatively by 2 Mobile Receive the Receiver (Pull) to the wallet or account
  6. 6. NEW PRODUCT DEVELOPMENT Money Transfer Mobile Apps Direct consumer $$$ Transfer Funds Core money transfer Target markets: North T t k t N th America & Europe P2P Customers Western Union Yellow Phone Mobile wallet / prepaid allet Transfer Funds Core money transfer P2P C t Customers Target markets: emerging countries T t k t i ti
  7. 7. WESTERN UNION COMPETITIVE ADVANTAGESMobile leverages the same trusted platform used by 445 000 locations in 200 countries 445,000 Western Union Money Transfer endorsed by the GSM Association y y
  9. 9. WHY DO THEY SEND MONEY?Regular support/ living expenses 60% Regular support/living expensesSpecial occasion (birthday/ wedding) 44% go to fundamental needsHoliday (Christmas/New Year) 43% % Groce rie s 78Emergency / urgent transfer 26% Utilitie s or utility bills 50Medical, doctor or hospital bills 21% Payme nt of me dical e xpe nse s 38 Re nt payme nts 31Educational expenses for a student 15% School fe e s 20 Pay de bts 13 Univ e rsity/othe r e ducation fe e s 9 Sav ings and inv e stme nts 8 M ortgage payme nts 7 Regular, loyal customer Busine ss re asons 4 Alimony 1 Family/Frie nds/Pe rsonal use 1 Clothing 1Source: Western Union Consumer Tracking Study, US Outbound Senders
  10. 10. WHERE DOES THE MONEY GO?66% of migrants worldwide send remittances to their loved ones at home Russia/CIS 41% Canada 43% European Union 56% Latin America 64% Asia 73% Oceana O % 75% Middle East 75% Caribbean 76% South Asia 82% Africa 87%
  11. 11. CASH STILL A PREFERRED METHOD OF PAYMENT IN MUCH OF WORLDCASH INTEROPERABILITY WITH MOBILE IS KEY Source: McKinsey, “Perspectives on the Worldwide Payments Business,” Feb, 2010.
  12. 12. CONSUMER PRIORITIES: CHANNEL AGNOSTIC Speed S • Funds sent immediately • Funds available for pickup immediately Convenience • Large distribution network • Channel alternatives based on customer preference • Trusted brand Reliability • Consistent experience – no surprises • World-class service
  13. 13. KEY CONSUMER LESSONS • Average remittance $200; average cash load $20 • Remittances drive subsequent volume • Mobile account adoption strengthened by remittances • Interoperability with cash network vital p y • Multiple services, utility bill, airtime top-up drives consumer adoption • Slightly lower remittance average, but more frequent •LLearning curve b f i before f ll potential full t ti l • Trust factor and brand recognition extremely importantSuccessful mobile wallet programs could attract 25-40% of transactions
  14. 14. PARTNERING WITH WESTERN UNION Gateway & Certification Program allowing world-class m-Wallet platforms to connect to Western Union p Quick scalability and easy integration with m-Wallets and Mobile Banking Mobile Network Operators/ Carriers Financial Institutions
  15. 15. WESTERN UNION PARTNERSHIPS 80K locations active for directed transfers in 48 countries activated in 5 countries 14 country agreements i place t t in l 6 active in 5 countries: Philippines, Kenya, Malaysia, Philippines Kenya Malaysia South Africa Canada Africa, 5 more countries in progress 9 mobile operator centric 4 bank centric operator-centric, bank-centric Over 130 M potential connections to subscribers/accountsWestern Union leading the number of cross-border initiatives in multiple geographies
  16. 16. NEWS AT MOBILE WORLD CONGRESS • Agreement to launch Mobile Money Transfer service in Middle East, Asia, Africa , , • Etisalat Group has operations in 18 countries and 135 million subscribers d illi b ib • Will enable Etisalat subscribers to send, receive send money using their mobile phones
  17. 17. CONCLUSION Remittances key part of Mobile Money Programs Western Union has built The mobile technology p gy platform Partnerships with key players Western Union is positioned to play at the center of the Mobile channel WESTERN UNION IS LEADING THE WAY FOR MOBILE MONEY TRANSFER
  18. 18. THANK YOU