This document provides an overview of mobile money and payment systems in Africa. It defines key terms like payment, escrow, and mobile money. It discusses popular mobile money companies in countries like Kenya, Nigeria, and Tanzania. Statistics on mobile money adoption and usage in East Africa are presented. The document also explains how escrow and wallet systems work, including how funds are deposited and withdrawn. It outlines pros and cons of escrow/ewallet systems compared to traditional banking.

1. Escrow &
Payment
Explosion in
Africa
Presented By:
Ewere Diagboya

2. Table of Contents
- What is Payment
- Escrow and Wallet System, Mobile Money (buffer)
- Payment Medium (cards, NFC, etc)
- Payment Processing/Gateways
- eInvoicing, eContribution, Direct Debit/Mandate etc
- Security
- User awareness
- General
- Conclusion

3. What is Payment ?

4. Payment
Payment is the transfer of an item of value from one party (such as a
person or company) to another in exchange for the provision of goods,
services or both, or to fulfill a legal obligation.
The simplest and oldest form of payment is barter, the exchange of one
good or service for another. In the modern world, common means of
payment by an individual include money, check, debit, credit, or bank
transfer, and in trade such payments are frequently preceded by an
invoice or result in a receipt. However, there are no arbitrary limits on
the form a payment can take and thus in complex transactions between
businesses, payments may take the form of stock or other more
complicated arrangements. (Source: Wikipedia)

5. Payment is Exchange

6. What is Mobile Money ?

7. What is Mobile Money ?
Mobile Money is a financial service that comes under the category of
mobile payments. Just like NFC, the payment process is contactless.
However, while NFC only works at close hand, Mobile Money also
allows money to be sent over great distances using cell phones.
(Source: Giesecke & Devrient)
The use of a mobile phone in order to transfer funds between banks or
accounts, deposit or withdraw funds, or pay bills. This term is also used
for the broader realm of electronic commerce; it can refer to the use of
a mobile device to purchase items, whether physical or electronic.
(businessdictionary.com)

8. What is Escrow ?
place in custody or trust until a specified
condition has been fulfilled

9. Mobile Money Companies in Africa
(Nigeria) by Pagatech
(Kenya, Tanzania India, SA)
(Nigeria) by eTranzact

10. List of Companies
Fetswallet, Payattitude, Kegow (MasterCard,
Visa, Verve), Verve eCash

11. Statistics
- According to the GMSA (www.gsma.com) 2013 mobile money adoption
survey, sub-Saharan Africa is home to 53% of all live mobile money
services in the world.
- These services, which allow users to withdraw and send cash from one
mobile phone user to another, using local retailers and trading stores as
ATMs, are available in 36 out of 47 countries in the region.
- Kenya sees $37 billion transferred annually with a GDP of $38 billion,
Tanzania sees more than $12 billion transferred annually, with a GDP of
$28 billion. In these two countries M-Pesa money is a mobile-phone based
money transfer and micro-financing service.

12. More Stats
- With 93% of the adult population registered for M-Pesa and 60% actively
using the service (more than 11.6 million people) (Source:
http://www.cgap.org/blog/mobile-money-10-things-you-need-know)
- Of the over 1.3 million users Paga has managed to amass, 15 are said to
use Paga every minute to conduct transactions from their mobile phones,
amounting to about 7 million transactions worth over N80 billion to date.
(Source: http://techcabal.com/2014/04/03/paga-5-today/) as at (APRIL 3,
2014)
- Paga has over 3.3 million users and over 800,000 active users as at today,
over 8,682 agents, and 3,524 businesses
- Paga Records Over 400,000 Mobile Payment Transactions Worth N4.5
Billion In September 2013

13. In and Out of Wallet System
- Fund Account
- Agency Banking
- Services rendered (airtime, merchant, bills)
- Cash out
These operations are performed using various channels
these channels are: Web, POS, SMS, USSD, NFC

14. Other Escrow Companies
These companies are strictly Web channel payment. These
businesses sprung up spotting out the cost of using
Interswitch directly for payment on the web
- SimplePay
- Cashenvoy
- VoguePay
- eyowo (deprecated)
- KWallet
- Cellulant Wallet
- etc

15. - Register an account
- Account services as buffer to receive payments
via various payment channels
- Cash out is made to a registered bank account
you registered with the account created on the
platform
Other Escrow Companies - Model

16. How to Join the EcoSystem
- Obtain your CBN or NCC license
- Build a well secured and reliable service
- Intergrate with a switching company/service
(Interswitch, NIMBSS, Remita)
- Build a large and reliable network of businesses to
serve your course for agency banking

17. Pros of Escrow/eWallet
- fast and easy
- not 100% reliant on banks (agency system)
- transactions can be performed whether banks
are available or not
- instant feedback gotten when payment is made
- no banking halls and reduced ATM queues
- transactions can be conducted in the absence of
internet (SMS, NFC, USSD)

18. Cons of eWallet
- cash not easily accessible
- low adoption because of the love of cash
- poor enlightenment and awareness
- poor agency system
- most still solely rely on internet and many
processes for use
- safety and security of the of users

19. Thank You