Thomas Bostrøm Jørgensen is a business advisor with experience as CEO of Luup, an international leader in mobile payments. The document discusses the growth of mobile financial services and payments driven by increasing mobile phone adoption globally. By 2015, over 7 billion mobile phones are expected worldwide, and mobile payments could surpass $500 billion annually. Mobile networks are leading this development, while traditional banks have lagged. Four market plays were identified based on levels of banking penetration in developed versus developing countries. The ecosystem for mobile financial services involves mobile operators, banks, payment organizations, and new solution providers. Live services show the potential of mobile banking, payments, and microfinance to bank the unbanked.

1. Mobile Financial Services
Mobile Monday Norway
6th December 2010
Thomas Bostrøm Jørgensen
Business Advisor
+47 92032078
thomas.bostrom.jorgensen@gmail.com

2. Credentials
 CEO, Luup from 2006-2010
 Luup is an international leader in domestic and
cross-border mobile payments
 Key achievements:
 Built a successful B2C mobile- and online payments
business in UK and Germany
 Redefined the company strategy from B2C to B2B
 Expanded sales organisation to cover Europe, Middle East
and Asia.
 Secured global strategic partnerships with Deutsche Bank,
and MoneyGram.
 Recruited and built a world-class executive team based on
top talent from organisations like MoneyGram, RBS, IBM,
Visa and Mastercard.
 Raised a significant amount of capital from existing to fund
the international expansion
 Speaker at key industry event like MMT, IPS, Financial
Services Club etc.
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3. Market drivers
 Mobile payments
opportunity driven by
7 billion by continued growth in mobile
2015 phone penetration
 Mobiles provide a new
channel for banking,
payments & transfers with
greater reach than
traditional bricks & mortar
locations.
 90% of the world’s
population has network
coverage & 60% has a
mobile phone.
 By 2015 total number of
mobile phones estimated to
180k 500k 650k 1m 25m 4bn be 7bn.
 Of these subscribers in
MoneyGram Bank Post Mobile
ATMs POS 2015, 1.5bn are expected
branches Offices phones to be using their phones as
a banking tool.
With an estimated 7 billion mobile phones in use by 2015, traditional payment providers
are now moving aggressively into the mobile payments space
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4. How big is the payments market?
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5. ... and the mobile payments market?
Recent survey predicts the value paid by mobile to surpass $500 billion by 2015
Source: Edgar Dunn & Company Forecasts 2009
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6. However …
 The mobile payments market has proven to be elusive…
Source: Innopay, Mobile Payments 2010
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7. The 4 Market plays
Developed Countries Less Developed Countries
Banked
Making mobile part of the
Leveraging and leapfrogging
economic fabric
These plays influence....
 Propositions
 Technology
 Ecosystem structure
 Ecosystem players
Unbanked
Bringing all into the locally

advanced financial Economics Social and economic
inclusion
system

8. Less developed countries
2 billion people unbanked
Estimated 215 million migrant Global remittances in 2008 totalled
workers worldwide (3% of world pop) $305bn
Over 2.5 billion people under-banked India remittances received
(2008): $45bn
Africa remittances
received (2008): $31bn
South America SE Asia remittances
remittances received Over 4 billion mobile phones in use
received (2008): $60bn
(2008): $57bn
Remittances to developing countries
totalled $247bn in 2008
Unbanked and migrant populations driving demand
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9. The developed world demands convenience
55% of mobile banking users
have smart-phones
Mobile banking services primarily
used by 20-34 year olds – Generation Y
57% of m-banking users see convenience &
anytime access as primary usage driver
90% of phones in Japan
have NFC capabilities
Sources: CheckFree survey, Yankee Group Research World Bank
Mobile enables anytime, anywhere value-add services
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10. Mobile Financial Services - ecosystem
Mobile Network Banks
Operators
Original Equipment Money Transfer
Manufacturers Organisations
Schemes / Payment
Government Sponsored Customers and Service Providers,
Organisations Merchants SIs, BPOs
Non Government Micro Finance
Organisations Companies
Mobile Financial Solution
providers
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11. Dominant
Dominance of the Mobile ecosystem Following
Developed Countries Less Developed Countries
MNOs Banks MNOs Banks
OEMs OEMs
Banked
MFSs GSOs
MFSs
MNOs MFSs MNOs GSOs
OEMs NGOs MFIs
Unbanked
GSOs OEMs
Banks MTOs
MFSs
MNOs are in the driving seat –banks lag, and are vulnerable

12. Live services and solution providers are emerging globally
European live services South Asia live services
Americas SP  Deutsche Bank Europe SP  Barclays “Hello Money”
 Monitise  NatWest  Luup  Obopay
 Fundamo  M-Pesa (Safaricom)  Monitise  mChek
 Mcom (Fiserv)  Caisse d’Epargne  Paybox (Sybase)
 Paymate  MoBank  Mi-Pay
 M-Foundry  Beem  Macalla
 Visa PayWave Asia SP
 Luup
 Fundamo
 Paymate
 Mcom (Fiserv)
Americas live services
 Obopay
 JP Morgan Chase
 Bank of America
 PayPal Mobile S.E. Asia live services
 Jibun Bank
 Globe Telecom (GCash)
 Western Union
 SK Telecom
Africa SP
 Mi-Pay
 Fundamo Africa live services Middle East SP Middle East live services
 Paybox (Sybase)  M-Pesa (Safaricom)  Luup  NBAD
 Fronde Anywhere  Zap (Zain)  Fundamo  National Bank of Kuwait
 Beem  Mi-Pay
 Paybox  Zap (Zain)
 Western Union  Globe Telecom GCash
 Orange  Paybox
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13. The industry is maturing
Benefits Potential
Consolidation
Industrialisation
Proliferation
Proof of Concept
Socialisation
Time

14. Mobile Financial Services – what are they?
M-banking M-commerce M-payments
 P2P payments
 Account balance  Contactless
 Payments  Remittance services
 Mini-statement
 Smart transit  Mobile wallet transfers
 Account limit alerts
 Merchant  Mobile airtime top-up
 Account transfers payments by SMS
 Bill payments
 ATM/branch locator  Event tickets
 Loans and insurance
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15. Mobile Banking:
Shinginko Bank – the world’s first mobile-only bank
 Personalised banking services
 Full banking services:
 Account opening
 Yen deposits
 Funds transfers
 Loans & insurance
 Mobile payments
 Targets Generation Y customers
 Changing the face of banking in Japan
 Won the Best Core Banking Project Award
2008 – Asian Banker
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16. Mobile Commerce:
MoBank – capitalising on the call for convenience
 MoBank is a mobile banking service,
which allows users to pay for purchases,
check balances.
 The user can register one debit or credit
card (Maestro, MasterCard, Visa or Visa
Debit) to the MoBank account.
 The user needs to install a free
application on the mobile phone in order
to be able to use MoBank
 Enables mobile purchases of:
 Train tickets
 Books
 DVDs
 Event tickets
 Fast food
 Generates revenue through commission
on purchases
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17. Mobile Payments:
M-Pesa – capitalising on the unbanked value chain
 Safricom, Vodafone’s Kenyan subsidiary, offers an SMS-based payment and
money transfer service
 Based on SMS and pre-paid accounts.
 Through M-PESA a user can deposit or withdraw money, transfer money to another
M-PESA customer or send money to a non M-PESA customer, buy Safaricom
prepaid airtime and manage the M-PESA account.
 In December 2008, Safricom announced an extension of the service with UK-Kenya
remittances in cooperation with Western Union.
 11.5 million previously unbanked customers (over 40% of Kenya’s adult population)
 30% of users save money in their M-Pesa account
Understand the potential for disintermediation
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18. Mobile Payments:
M-Paisa - Mobile Microfinance
 Vodafone and Afghan mobile operator Microfinance
Roshan have launched M-Paisa for  microcredit, savings, insurance,
microfinance institutions. money transfers, and other
 In a country where 36% of its people financial products targeted at poor
live below the poverty line, Afghanistan and low-income people
is the poorest country in the world  $25 billion currently at work in
outside Africa microfinance loans & 20 million
microfinance accounts globally
 It also has a 40% penetration rate of 12
 India - 188 million accounts (18%
million mobile subscribers out of a of population)
population of 30 million
 Latin America and Caribbean - 14
 M-Paisa is based on an IVR service million accounts
which will enable greater use of M-  Africa - 27 million accounts (4% of
Paisa by consumers who might population)
otherwise be excluded due to high
illiteracy rates in Afghanistan
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19. Mobile Payments:
Osaifu-Ketai – an NFC success
 Osaifu-Keitai, literally meaning "Wallet Mobile", is a trademark of NTT
DoCoMo, which developed the system.
 It refers to the mobile phones integrated with Sony’s Mobile FeliCa ICs, as
well as the services provided by the applications on these phones.
 Although it is developed by NTT DoCoMo, the system is also supported by
other MNOs, making it the de facto standard mobile payment system in
Japan.
 Osaifu-Keitai services include electronic money, identity card, loyalty card,
fare collection of public transits or (including railways, buses and airplains),
or credit card
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20. Current headlines point to the future
 NAIROBI, Kenya, Dec 2, 2010 - Financial institutions plan to leverage on mobile
money transfer technology to enlist more Kenyans in the formal banking system
 New York, Nov 16, 2010 - AT&T Mobility, T-Mobile USA and Verizon Wireless
today announced the formation of a joint venture chartered with building ISIS™, a
national mobile commerce network that aims to fundamentally transform how
people shop, pay and save
 India, Dec 1, 2010 - Nokia Stores To Serve As Banking Correspondents For Union
Bank of India’s Mobile Payments
 Australia, Nov 26, 2010 – Mobile payments taking off. PayPal reports that this year
mobile payments took off in Australia
 California, Nov 18, 2010 - Google CEO Eric Schmidt revealed that upcoming
Android devices would include support for something called Near Field
Communication
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21. In summary
 Mobile Financial Services are getting foot-hold everywhere
 Roll-out is faster and take-up is higher in less developed
countries because if offers the users greater value
 Developed countries will see mass take-up and usage with
NFC (driven by next gen iPhone and Android?)
 Mobile operators are leading the way and banks are lagging
 The future is mobile!
Thank you for listening!
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