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Mobile Money: The Foundation for all Industries in Cash-Based Economies


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This presentation describes how mobile money is used in various industries including mHealth, Agriculture, and off-grid energy and why it is important to cash-based economies. For more information on how mobile money can be used to enhance the outcomes of your industry, contact our consulting services at:

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Mobile Money: The Foundation for all Industries in Cash-Based Economies

  1. 1. Mobile Money: The Foundation for all Industries in Cash-Based Economies mPay Connect, Inc. ©mPay Connect, Inc. 1
  2. 2. agenda1. background2. why mobile money?3. uses in the field ©mPay Connect, Inc. 2 2
  3. 3. background 6/29/2011 ©mPay Connect, Inc. 3 3
  4. 4. mPay Connect Consulting Global Team for Mobile Financial Services mPay Connect – Global Affiliate Team Canada: Led Product Development for MNO Consortium to launch mobile payments system Canada: Architected and oversaw the development of the NFC/Mobile commerce infrastructure in Canada together with Canadian members of the GSM Association, CDMA carriers, FI’s, associations and processors China: Chief interlocutor for PayPal on branchless Europe: Developed global market strategy payments with the Peoples Bank of ChinaNorth America: Led PayPal for Fortune 500 firm for mobile moneyMobile Business Development Bangladesh: Developed bKash Business Planfor North America (JV with BRAC). Awarded $10 million. Nigeria: Worked with client banksMexico: Chief Jamaica: Developed on interpreting Central Bank of India: For leading FI, Asia: Developed online paymentsinterlocutor for Regulatory policy Nigeria mobile regulations and created Mobile Airtime AML standards with FATF, whichPayPal on branchless recommendations for provided consortium currency were incorporated in 2009 typology,payments with the Central Bank. recommendations recommendation and stored value and branchless bankinggovernment of cross boarder airtime for payments in Singapore and other Kenya: Advisor toMexico Latin America: Chief global regulatory negotiator for processing platform countries in Asia startup mobile PayPal, with responsibility for Central Banks and other money platform national regulators, World Bank, and Inter-American Kopo Kopo Australia: Assisted local country Development Bank; specific expertise in financial managers in launching PayPal services licensing in the PRC, and Latin America South Africa: Launched branchless Mobile banking services via USSD/WAP/SMS 6/29/2011 ©mPay Connect, Inc. 4 4
  5. 5. mPay Connect Consulting Join our Linked In Group: Mobile Payments Series – mPay Connect• Representative Clients: • World Economic Forum • United Nations Foundation (mHealth Alliance) • bKash: Bangladesh Joint Venture between BRAC and Money in Motion • Jamaican Central Bank • Inter-American Development Bank • 3 of the 4 largest banks in the U.S. • Global mobile operators• Publications: • World Economic Forum, The mHealth Alliance, “Amplifying the Impact: Examining the Intersections between Mobile Health and Mobile Money,” (January 2011) for Davos Annual Summit. • Innovations Magazine (MIT Press) (June 2011) on “(The) Mobile Money Movement: Catalyst to Jumpstart Emerging Markets” • Inter-American Development Bank: “Addressing Gender Concerns around Mobile Money Access in Jamaica” ©mPay Connect, Inc. 5 5
  6. 6. why mobile money? 6/29/2011 ©mPay Connect, Inc. 6 6
  7. 7. mobile money =foundation for all industries in cash-dependent markets mHealth, Off-Grid Energy, Food Security, Disaster Relief Mobile Financial Services salary, payments, savings, insurance, credit ©mPay Connect, Inc. 7 7 7
  8. 8. mobile money defined Using the mobile phone as a channelto conduct payments, account management, and other financial services 6/29/2011 ©mPay Connect, Inc. 8 8
  9. 9. mobile money = (mobile) financial services Mobile Financial Services Mobile Payments Mobile Microfinance Mobile Finance Mobile Banking Mobile Banking Credit, Savings, P2P C2B B2B B/G 2C Insurance Transactional Informational• Mobile Money Transfer • At store • Replace cash • Salary • Disburse, Repay • Mobile bill payment • Alerts• Domestic or International (proximity payments) in supply chain disbursements • Savings, Insurance • Brokerage • Account balance & Mobile remittances • Mobile online • Pensions • Insuran history (e.g. eBay or ringtones) • Rebates • Micropayments (to bill) ©mPay Connect, Inc. 9
  10. 10. increases financial access World Economic Pyramid Banks 500 Mill *>$20k/yr Unbanked, 2 Billion Mobile *$3260 to $20k/yr Opportunity: 1.7 Billion in Today 2012 4 Billion 2012 Source: CGAP *<$3260/yr or <$9/daySource: World Resources Institute(*Individual Annual Income: 2005 USD Purchasing Power Parity) ©mPay Connect, Inc. 10
  11. 11. reduces costs of financial services $ 4.00 Branch $ 3.75 Live Rep $ 1.50 IVR $ .08 Mobile©mPay Connect,Inc. ©mPay Connect, Inc. 11
  12. 12. Case Study: Kenya’s mPesa takes off like WildfireMobile money transfers via SMS – Mobile payment system built using SMS messagingHow mPesa is used: – Send money (Agent) – Receive money (Agent) – Pay for things (Merchant, Bills, etc.) Now Registered Customers 14 million! 8,000,000 7,000,000 7,000,000 6,000,000 (~50% 5,000,000 Safaricom base) 4,000,000 3,367,192 3,000,000 2,000,000 1,000,000 0 268,499 July 2007 July 2008 July 2009 ©mPay Connect, Inc. 12
  13. 13. healthcare 6/29/2011 ©mPay Connect, Inc. 13 13
  14. 14. mHealth and MFS are inextricably linked bycommon building blocks and cross-sector dependencies Prosperity Wealth Health Mobile Pay for mHealth Financial mHealth Services Use case for MFS Policy Concerns Business Elements Infrastructure Users ©mPay Connect, Inc. 14
  15. 15. Mobile Using MFS to spur mHealthFinancial mHealthServices e.g. Maternal Continuum of Care WHO-MNCH Pre- Continuum of Pregnancy Pregnancy Birth Postnatal Care • Conditional Cash Transfers • Prepaid savings accounts Patient Level • Micro-Insurance • Payments (ambulatory, health information) • Voucher payments • Supply chain Provider / Service Level • Data retrieval / decision support • Management services • Testing, Labs, Diagnostics • Salary Disbursements HR / Administrative Level • • Performance-based Funding Conditional Cash Transfers • Expense payouts ©mPay Connect, Inc. 15
  16. 16. food security 6/29/2011 ©mPay Connect, Inc. 16 16
  17. 17. issue: precarious cycle further exacerbated by lack of financial services Can’t invest Crop Output Less Money Down Turn to Sex Work Less Farming Can’t buy food Caretaker Burden Up Malnutrition/ Illness ©mPay Connect, Inc. 17
  18. 18. innovations 6/29/2011 ©mPay Connect, Inc. 18 18
  19. 19. Mobile Financial Services: Lease-to-Buy for Off-Grid Energy ©mPay Connect, Inc. 19
  20. 20. Mobile Vouchers and Micro-Savings for Food and HealthcareMobile Vouchers Prepaid Savings with Mobile Top-up ©mPay Connect, Inc. 20
  21. 21. Mobile Micro-Insurance for Small Holder Farmers Syngenta’s Kilimo Salama in Kenya ©mPay Connect, Inc. 21
  22. 22. Contact 6/29/2011 ©mPay Connect, Inc. 22 22