Deloitte Maverick Campus Champions, Regional Qualifiers presentation based on the case Given on Pocket payment and entry strategy into another country. 2015

2. Question Set “ A” Question Set “B” Question Set “C”Executive Summary
Risk Profiling of
the target regions
Targeting
segments : C2B
/P2P
Requisite
technology for
the segment
Region to expand
Strategic Objective
To analyze the
potential segment
Potential region with
improve foot steps
To align technology
with the segment
To Identify and mitigate
the expansion risks
Value creation and
addition through Risk
Management
Two Target regions
to give perfect
Diversification
Awareness of the
technology: Need of
the hour
Declining trend of P2P
& Increasing trend in
C2B (Double Side
effect)
Recommendations &
Conclusions
Analysis
Macro level,
Strategic &
Operational Risks
Company should
enter Middle East
and Asian regions
Company should
venture into Mobile
web
Company should go
for C2B
Middle East: Economies
of Profits
Asia: Economies of
Scale
C2B because of vast
product offerings and
awareness among the
users
Risks should be
mitigated at Micro
level
Mobile web as Smart
phone penetration is
increasing
Insights
Regions like Middle
East, Africa & Asia
could be targeted
Adaptability &
Visibility of mobile
web is high
World Share of C2B
industry is rapidly
increasing
Managing Risk can
create competitive
advantage

3. Question Set “ 1.A” Question Set “B” Question Set “C”Executive Summary
Question: Which Segment C2B or P2P?
Solution 1:
Analysis
75.6%
73.5% 72.3% 71.4% 70.8% 70.1% 69.4% 68.9%
24.4%
26.5% 27.7% 28.6% 29.2% 29.9% 30.6% 31.1%
45.0% 44.0% 44.1% 44.5% 44.8% 44.8% 44.7% 44.7%
55.0% 56.0% 55.9% 55.5% 55.2% 55.2% 55.3% 55.3%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
2010 2011 2012 2013 2014 2015 2016 2017
Comparitive analysis of C2B/P2P in Value and Volume Terms of
Global mobile Payment Transactions
P2P ( Value Contri)
C2B ( Value Contri)
P2P (Volume Contri.)
C2B(Volume Contri.)
- Decreasing P2P Volume; Increasing C2B Volume: GAP
Increasing
- Decreasing P2P Value ; Increasing C2B Value: GAP
Decreasing
- 2010 – 2017: P2P Volume Decreases by .3% but Value
Decreases by 6.7%. Opposite effect in C2B.
- C2B eating P2P share. (Volume Game)
Why C2B ?
--Vast Service Offerings
(Ecommerce, Top-ups...)
-- Competition with other
Industrial Rivals:
-- Lower Value transactions
>> Hence easy to attract
customers >> Easier to gain
Trust & Market Share.
-- Higher Margin Spread
-- No transaction fee for
customer unlike P2P
(Merchant Pays)
Why NOT P2P ?
-- Limited Services
-- Trust Issues with
Customers
-- Lower Margin Spread
-- Customer Pays
Transaction fee to Service
Provider Based on amount
of transaction on % basis.
Conclusion/Suggestion:
Opting for C2B

4. Question Set “ 1.B ” Question Set “B” Question Set “C”Executive Summary
Question : Which technology (SMS, Mobile Web, USSD, and NFC)
67.4%
61.7%
57.6%54.8%
51.9%
49.0%46.6%44.2%
25.4%
30.7%
34.3%36.6%38.9%41.2%42.8%44.4%
6.0% 6.1% 6.3% 6.6% 6.7% 6.8% 6.7% 6.6%
1.2% 1.5% 1.8% 2.1% 2.5% 3.1% 3.9% 4.8%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
2010 2011 2012 2013 2014 2015 2016 2017
Market Contribution in Global Mobile payments of various
Technologies by Value, Globally
SMS
Mobile
Web
USSD
NFC
62.0%
58.9%
55.9%
53.8% 52.0%
50.1% 48.4%
46.8%
22.2% 24.7%
26.6%27.9%28.9% 30.1%
30.9% 31.4%
9.6% 9.9% 10.0% 10.2% 10.2% 10.1% 9.9% 9.7%
6.1% 6.4% 7.4% 8.1% 9.0% 9.8% 10.8% 12.1%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
2010 2011 2012 2013 2014 2015 2016 2017
Market Contribution in Global Mobile payments of various
Technologies by Volume, Globally
SMS
Mobile
Web
USSD
NFC
Initial
Observation
& Analysis
-- Negative
CAGR growth
in SMS (Value
per
Transaction)
--SMS
dominate in
Volume Yet
Mobile web
Dominates in
Value
SMS Mobile
Web
USSD NFC
Market Share
by Value
Market Share
by Volume
Value Per
Transaction
(2017)
29.7 42.7 20.7 11.1
Appendix 4
Mobile SMS Mobile Client
User friendly Moderate High
Service delivery
reliability
Low Moderate
Maintenance Low Low
Language English Multi
Overall retail
comfort
LOW MODERATE
Hence we Suggest going
for Mobile Web
Conclusion/Suggestion

5. Question Set “ A” Question Set “B” Question Set “C”Executive Summary
2014 2015 2016 2017
Amount
per transaction
Asia/Pacific 26.18 25.93 26.25 25.82
Middle East
72.82 72.73 72.70 72.47
Latin America 44.58 44.18 43.16 42.90
North America 48.23 49.31 50.52 51.56
Africa 24.66 24.21 23.72 23.39
Amount Spent
Per Person
Asia/Pacific
961.0 1110.9 1295.8 1451.6
Middle East 1931.2 2232.9 2560.0 2922.0
Latin America 783.5 935.8 1096.6 1295.0
North America 1138.2 1310.7 1509.5 1733.5
Africa 1414.1 1574.3 1723.4 1875.6
Number of
Transactions
per user
Asia/Pacific 36.71 42.84 49.36 56.23
Middle East 26.52 30.70 35.21 40.32
Latin America 17.57 21.18 25.41 30.19
North America 23.60 26.58 29.88 33.62
Africa 57.36 65.04 72.66 80.19
•Not considering North America as company is
primarily based out there and needs expansion.
•Using Tables 5,6,7 following data can be observed.
•In Latin America Number of transactions per user
i.e.30 which is lower than all other regions.
•Since C2B is chosen then we are going for volume
strategy initially hence this would be a negative
factor
•Amount spent per person in Latin America is also
lower as compared to other regions in 2017.
•Though it has higher internet penetration yet the
transaction number and amount in the region is
low.
•Hence out of 5 we reduce the scope to 3 regions
Question: Which Region ?

6. Question Set “ A” Question Set “B” Question Set “C”Executive Summary
ASIA
Middle East
Africa
Analysis of External Data
•Low Smartphone penetration in Africa compared to others
•Calculating Correlation between Per Capita income & SmartPhone Penetration gives->>
Affordability >> shows dependence of Smartphone purchase on income>>higher in
Africa(But overall low income)>> Lesser penetration possibilities compared to others
•Low Internet penetration & Low Bank account penetration in Africa
Population (2015 Est.): 1,158,353,014
Internet Users 318,633,889
Internet Penetration
(%population)
27.5%
SmartPhone Penetration 15-20%
Mobile Wallet as % of Pop 7.34%
Mobile Wallet as %
Internet Users
26.67%
Affordability 0.859
Adaptability to Technology 0.406
Population (2015 Est.): 236,137,235
Internet Users 113,609,510
Internet Penetration
(%population)
48.1%
SmartPhone Penetration 65-70%
Mobile Wallet as % of Pop 2.23%
Mobile Wallet as %
Internet Users
4.64%
Affordability 0.612
Adaptability to Technology 0.103
Population (2015 Est.): 4,032,654,624
Internet Users 1,405,121,036
Internet Penetration
(%population)
34.8%
SmartPhone Penetration 35-40%
Mobile Wallet as % of Pop 2.85%
Mobile Wallet as % Internet Users 8.02%
Affordability 0.699
Adaptability to Technology 0.432

7. Question Set “ A” Question Set “B” Question Set “C”Executive Summary
Countries Population
Banked
Population SmartPhone
Internet
Penetration
Political
Index Per Capita
Literacy
Rate
Poverty
Headcount
2015 2015
Nigeria 17,45,07,573 66% 27% 38% 59 5,602 61% 46%
Kenya 4,09,10,000 75% 14% 40% 67 2,795 87% 46%
South Africa 4,90,04,031 70% 39.80% 50% 69 12,867 94% 23%
Algeria 3,49,94,937 33% 28% 17% 69 13,320 86% 26%
Tanzania 4,21,76,000 60% 8% 5% 69 2,443 70% 28%
UAE 92,00,000 >75% 75% 93.20% 89 59,485 78% NA
Qatar 23,74,860 >75% 75% 94% 88 1,40,000 96% NA
Saudi Arabia 2,98,78,043 <25% 60% 60% 78 53,644 87% 13%
Oman 35,60,058 >75% 65% 70% 84 45,334 82% 32%
Kuwait 35,02,049 25-50% 69% 65% 81 83,840 94% NA
India 1,28,23,90,303 59% 29% 15.10% 70 5,418 74% 22%
China 1,40,15,86,609 64% 47% 46% 70 11,907 95% 17%
Vietnam 9,25,47,959 20% 36% 43% 68 5,294 94% 17%
Indonesia 25,54,00,000 20% 31% 40.0% 69 9,561 93% 11%
Phillipines 10,00,96,496 31% 30% 38.0% 73 6,536 96% 25%
Selecting a 5 Country mix for each of the 3 important regions
Eliminating Africa:
Lower Smartphone penetration, High political instability based on political index, Literacy
rate of developed countries of Africa is comparatively lower than Asian developing and
developed economies.
High poverty in Africa based on poverty head count which is also higher than Asian
subcontinent(Developing economies)
5 Comparatively
Developed Nations
of Africa
5 Comparatively
Developed Nations
of Middle east
5 Developing
Nations of
Asia
Low Values in each
Aspect compared to
Other 2 regions
Conclusion/Suggestion:
Middle East: Value Margin
Asia: Volume/People Margin
Source: World Bank, Statista 2015

8. Question Set “ A” Question Set “B” Question Set “C”Executive Summary
Question 3: What are the top three risks associated with company’s expansion plans, and how can the company mitigate these risks?
Regulatory
/Legal
Tax Regimes
Political
Foreign
Investment
Business
Social
Technological
Contract
Reputation
Digital
Marketing
JV/Own
Subsidiary
Competition
GLOBAL RISK
Macro level
Risk
Strategic
Risk
Operational
process Risk
RISK CATEGORIZATION
JV/Own
Subsidiary
Competition
Reputation
Contract
Political
FDI
Social
Regulatory
/ Legal
Tax
Regime
Operational
Process Risk
Infrastructure
Risk
Technological
Value Chain
Strategic
Risk
Macro
Risks
Regions
MACRO
LEVEL
RISK
STRATEGIC
RISK
OPERATIONAL
PROCESS RISK
ASIA 0.4 0.3 0.3
MIDDLE
EAST
0.25 0.35 0.4
Assigning Weights as per the Risk
Weights are assigned according to the
magnitude of the risk pertaining to the
region.
High weight reflects severity of the risk
and emphasise to mitigate it.

9. Question Set “ A” Question Set “B” Question Set “C”Executive Summary
Question 3: What are the top three risks associated with company’s expansion plans, and how can the company mitigate these risks?
Risk/
Region
JV/Own
Subsidiary
Risk
Competition Risk Contract Risk
Asia
The Company
should enter
with a local
partner to have
better market
understanding .
Royalty basis.
Competition can
be dealt with
volumes and
squeezing
margins to attract
more and new
customer.
MNC venture
emphasize on
contract negotiation
& drafting . It can be
mitigated through
taking third country
as arbitration. Eg:
U.K.
Risk/
Region
JV/Own Subsidiary
Risk
Competition
Risk
Reputational Risk
Middle
East
As ME is high on
ease of doing
business then the
company can enter
ME through a
wholly owned
subsidiary.
Competition can
be dealt with a
strategic alliance
with a new e-
commerce
player.
Mitigating such risk
through choosing
correct digital mode,
taking all the stake
holders into
consideration.
RISK MITIGATION STRATEGY
STRATEGIC RISK MACRO RISK
Social: Target
Region with
homogeneity in
language, cultural
Regulatory: Study
previous ventures,
Collaborate with
SMEs & legal
consultants.
FDI :
Agency
like MIGA
etc
OPERATIONAL RISK
TECHNOLOGY
--Secure
--Vigilant
--Resilient
--Multiple
Firewalls
INFRASTRUCTURE
--Servers
Based in HQ
--Leasing
VALUECHAIN
-- Mitigating
the Digital
Marketing
risk

10. THANK YOU

11. Mobile web catches up in volume and Value for SMS. And
dominates in absolute Volume and Value compared to NFC and
USSD in 3 important regions
51456.4
3627.2
56222.6
62460.2
5771.8
65535.4
76988.4
8607.4
74640.4
90565.8
12198.5
83002.8
38569.5
2718.8
42141.9
52504.5
4851.8
55089.6
70736.5
7908.4
68579.2
90931.2
12247.7
83337.7
ASIA
MIDDLEEAST
AFRICA
ASIA
MIDDLEEAST
AFRICA
ASIA
MIDDLEEAST
AFRICA
ASIA
MIDDLEEAST
AFRICA
2014 2015 2016 2017
CONTRIBUTION OF SMS & OTHER TECH. ON 3 MAJOR
REGIONS BY VALUE
SMS Mobile Web USSD
NFC Linear (SMS) Linear (Mobile Web)
1967.9
2283.2
49.9
2461.8
2767.2
81.1
3042.7
3265.2
122.8
3719.7
3762.8
178.5
1095.1
1270.6
27.8
1479.6
1663.2
48.7
1944.8
2087.0
78.5
2490.0
2518.8
119.5
ASIA
AFRICA
MIDDLEEAST
ASIA
AFRICA
MIDDLEEAST
ASIA
AFRICA
MIDDLEEAST
ASIA
AFRICA
MIDDLEEAST
2014 2 0 1 5 2016 2017
CONTRIBUTION OF SMS & OTHER TECH. ON 3
MAJOR REGIONS BY VOLUME
SMS Mobile Web USSD
NFC Linear (SMS) Linear (Mobile Web)
Appendix