The document discusses how mobile network operators can earn revenue from mobile financial services. It provides examples of existing mobile money ecosystems, international remittance services, mobile payments for online purchases and gambling. The document argues that mobile payments can facilitate e-commerce in developing markets where credit card usage is low. It also suggests that mobile banking can reduce costs for financial institutions. Overall, the document advocates for collaboration between mobile operators, financial institutions, and merchants to establish ubiquitous mobile wallet platforms and payment standards.

1. eBIZ.mobility
Mobile Financial
Services- How Operators
Earn Revenue
Jeremy Kagan
Founder and CEO
jeremy.kagan@ebizmobility.com
Ecommerce Everywhere © 2010 eBIZ.mobility LTD Proprietary and Confidential

2. eBIZ.mobility
Agenda
• Primer on Mobile Financial Services
• Examples and Case Studies
– Mobile Money Ecosystems
– International Remittance
– Internet Commerce
– Gambling
– Mobile Banking
• Success Factors and Challenges
• Limiting Risk While Increasing Reward
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3. eBIZ.mobility
Mobile Financial Services
• P2P Transfers
• Mobile Wallets- Stored value / Prepaid cards
• Payment Ecosystems
• Bill Payment
• Mobile Purchasing NFC and Remote
• Salary Disbursement
• Remittances- cash and airtime
• Mobile Banking (banked, unbanked)
It is not just about Premium SMS anymore!
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4. eBIZ.mobility
Infinite Ecommerce. No Borders. No Barriers. June 2010 eBIZ.mobility LTD Proprietary and Confidential

5. eBIZ.mobility
High Volume Revenue Share Opportunity
• Over 4 billion handsets worldwide, growing to 5.8 billion by 2013 (growth
residing mostly in the emerging markets)
• Mobile Wallet (Domestic)- $4.8B in direct revenues and $2.9B indirect
revenues for telcos in emerging markets (GSMA)
• 85% of world population is unbanked (Gartner)
• International Money Transfer (remittances)- $420B/yr - $600B including black
market (World Bank)
• Fees 2%-15% depending on sending/receiving country (World Bank)
• Mobile Financial Services will yield $7.9 billion in revenues for MNOs by 2012
(GSMA)
• International Airtime Transfer- 5% of Top-Up revenue, $8B transferred
• Alternative payments 7% of online commerce world growing to 15%
• 457M Mobile Banking Users by 2015 (Payments CM Research – Advanced Payments Report 2009)
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Confidential & Proprietary 2010
June eBIZ.mobility LTD Proprietary and Confidential 5

6. eBIZ.mobility
Global Advanced Payment Forecasts- Relative Volumes
Source: PaymentsCM Research – Advanced Payments Report 2009
Infinite Ecommerce. No Borders. No Barriers. June 2010 eBIZ.mobility LTD Proprietary and Confidential

7. eBIZ.mobility
Mobile Money- Now is The Time
Ecosystems are Forming
Why has it taken so long?
- Somebody had to take the first step- and it is a BIG one
- Asia- Transportation Authorities mass NFC infrastructure spurred MNOs
- Philippines- prepaid top-ups led to Mobile Payments, remittances, p2p
- Africa- MNO deployments led to Mobile Wallet, remittances, p2p, top-ups
What is different now? Baseline Infrastructure is in Place
- Successful deployments give basic learning curve on commercial models
- NFC deployments are starting in Europe
- 90% unbanked rates prevent PayPal from satisfying web payment needs of many
markets
Infinite Ecommerce. No Borders. No Barriers. June 2010 eBIZ.mobility LTD Proprietary and Confidential

8. eBIZ.mobility
Mobile Wallet
• A virtual wallet for subscriber
• May link to:
• Cash- Stored Value
• Credit cards Loyalty Card
• Prepaid cards
• Gift and loyalty cards
• Identity cards
Credit Card /
• Bank account Debit Card
• May be based in:
• Server
Identity Card
• Handset App
Cash
• Contactless (NFC) Card Check Book Prepaid Airtime
Voucher
Wallet shown courtesy of Trivnet Ltd.
Infinite Ecommerce. No Borders. No Barriers. June 2010 eBIZ.mobility LTD Proprietary and Confidential

9. eBIZ.mobility
Case Study- Mobile Money Ecosystems In Service
• M-Pesa Kenya (Vodafone)- 70% of users were previously
banked- this is a disruptive offering, 2 Million transactions/day
(May 2009), 10% of Kenya’s GDP flowed thru in 2009
• Zain- Zap Holdings Subsidiary- 16.5M active customers-
introducing new people to financial services
• SMART Money Philippines- 125,000 cash-in agents, can
support airtime sales of $0.06
• G-Cash Philippines- 18,000 cash-out points
• Oi Paggo Brazil- 250K Users, 70K merchants
Infinite Ecommerce. No Borders. No Barriers. June 2010 eBIZ.mobility LTD Proprietary and Confidential

10. eBIZ.mobility
Case Study- International Remittances
• Average domestic cash deposit $20
• Average mobile remittance transfer $200
• International money transmittance currently costs $5–$87 for a
remittance amount of USD$500 - World Bank
• Mobile is more convenient and lower cost
• Mobile Remittance Corridors are Already in Commercial Service
where mobile wallet ecosystems exist:
– Kenya
– Philippines (An estimated 10 million Filipino migrant and contract workers
remit $17 billion annually via traditional methods)
– Poland & Eastern Europe
– Mexico
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11. eBIZ.mobility
London,
March 2010:
Western
Union
Advertising its
IMT service to
M-Pesa
Kenya
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12. eBIZ.mobility
Web Commerce Today- Limited by Credit Cards
United States Rest of World
40% of U.S. and 90% of Rest of World Internet Users Do Not Have a
Credit Card (Yankee Group)
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13. eBIZ.mobility
Case Study- Web Payment for Digital Content
• Facebook, MySpace, Bebo Applications
– Mafia Wars
– My Empire
– Guitar Hero
– Spare Change
• App Stores
– iTunes
– Ovi
• i-mode Japan
• Micropayments
– Boku
– Zynga
– Ping.ping
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14. eBIZ.mobility
Case Study- Mobile Payment for Online Gambling
• Mobile payment offers a quick and easy-to-use payment solution for
casino players to instantly deposit funds to their balance on-the-move
• Launched mobile payment method Aug 2008 in a regulated market- UK
• Started with licensed online/mobile casino Wild Jack Casino: Web:
http://www.wildjackcasino.com WAP: http://mobile.wildjackcasino.com
• Initial transaction amount set to £10
• Due to success in Nov 2008 increased transaction amount to £15
• In 2009 increased transaction amount to £30
• Expanded service to All Slots Casino (fully licensed) Web:
www.allslotscasino.com WAP: http://m.allslotscasino.com
• 70% of all payment attempts are carried out by players who subscribed
to a different mobile network operator
• Since the mobile payment system was launched, the operators
experienced zero disputes or claims by players
Infinite Ecommerce. No Borders. No Barriers. June 2010 eBIZ.mobility LTD Proprietary and Confidential 14

15. eBIZ.mobility
Case Study- Mobile Banking
• Convenience application for the developed world
• 2009 survey conducted by Palmer Research*
• 2/3 of offline consumers contact their financial institution once a week
or more through traditional bank channels.
• 1/2 use the bank call centre or interactive voice response (IV)
• Each call centre transaction costing an average of US$3.75
• Each IVR transaction costing an average of US$1.25
• Mobile banking estimated US$0.08 per transaction
• Strong operational incentive for Banks to push the mobile channel.
*http://www.onwindows.com/Articles/Mobile-banking-moving-beyond-the-branch/4951/Default.aspx
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16. eBIZ.mobility
Goal- Payment Standard Alongside Visa/MC
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17. eBIZ.mobility
MNOs Have Strong Assets for Mobile Money Services
• Branding
• SIM Card
• Distribution Network
• VAS Marketing
• Billing Relationships
• Customer care infrastructure
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18. eBIZ.mobility
Collaboration is Key to Success- “Fuel the Wallet”
Ubiquity
• Wide Merchant Network
• Wide Agent Network
• Consistent User Experience
Regulation
• AML/CFT- Anti-Money Laundering/Combating Funding of Terrorism
• Know Your Customer- KYC
• eMoney rules
Overcoming Challenges and Making Money
• Partner with a MFS Hub Provider and Financial Institution
• Deploy open technology platforms and interfaces
• Partner with Merchant Acquirers
• Follow successful 90/10 rev share models to attract merchants!
Infinite Ecommerce. No Borders. No Barriers. June 2010 eBIZ.mobility LTD Proprietary and Confidential 18

19. eBIZ.mobility
Mobile Money Limits Risk and Liability
• Wallet provides “Chinese Wall” - No direct relationship between
operator and merchant- operator can monetize consumer’s cash &
payments without direct exposure
• Non-Reputable User Authentication- Operators currently have 2 factor
and even 3 factor user authentication systems available which make
transactions legally non-reputable
• Consumer Trust- Consumers use the trust relationship with their
Operators who maintain their private financial information as their
“online identity keepers”
• Reduces Theft- Cash collection by businesses and consumers in
remote regions are more secure if done electronically
Infinite Ecommerce. No Borders. No Barriers. June 2010 eBIZ.mobility LTD Proprietary and Confidential 19

20. eBIZ.mobility
The Right Hub Facilitates Success
Open Web-
Advertising & Age Subscriber Interaction
Restrictions
Payment JAVA apps Web
for i-gaming
Mobile Operator
Payment Interfaces
Real-Time Clearing
Immediate availability of funds
Guarantee Finality of Transaction B2B Client Support
Real-time Identity Management
$
Merchant/Agent Authentication
Transaction Verification Content / Service Provider
Bank Payment Authorization Delivery Platform
Settlement & Reporting
Administration &
24/7 Operations
Reporting & BI
Food Mart
Point of Sale
Payment Cash-Out
Wholesale Clearing P2P Top-Up Public
& Settlement Payments & Remittance Transit
Transfers
Infinite Ecommerce. No Borders. No Barriers. June 2010 eBIZ.mobility LTD Proprietary and Confidential

21. eBIZ.mobility
About eBIZ.mobility
We provide alternative payment solutions for internet, mobile, and
electronic payments.
Product Suite: Target Markets:
- OneTouch Online Purchasing® Digital Merchants
- OneTouch Cashier™ Online & Mobile Casinos
Underlying Technology (patent pending):
- Federated Payment™ Payment Service Providers
- Applet based payment App Stores
- RMG™ (Roaming Mediation Gateway) MNOs
Copyright © 2007-2010 by eBIZ.mobility LTD. All rights reserved. eBIZ.mobility and the eBIZ.mobility logo, OneTouch Online Purchasing and the OneTouch Online
Purchasing logo, Federated Payment, and RMG are trademarks or registered trademarks of eBIZ.mobility LTD. All other trademarks belong to their respective
owners. The information contained herein is subject to change without prior notice.
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22. eBIZ.mobility
What do you want to
purchase today?
Jeremy Kagan
Founder and CEO
+972 2 999 3881
jeremy.kagan@ebizmobility.com
Ecommerce Everywhere © 2010 eBIZ.mobility LTD Proprietary and Confidential