Avoiding another run of the mill solutions (i.e. any wallet proposition), we are aiming to resolve most of the practical pain areas of Indian citizens including homegrown merchants by offering them a one stop solution for digital payments. MONEY ALL TIME is an answer to this !!!!!!

1. Atul Shrivastava
EncodingEnhancers
1/2/2017
Analysis & Future

2. Table of Contents
Data for Mobile Subscribers................................................................................................................2
Revenue breakup from Mobile Subscribers..........................................................................................2
Data for Mobile Internet Subscribers...................................................................................................2
State vise distribution for Mobile Subscribers.......................................................................................3
State vise distribution for Mobile Internet Subscribers .........................................................................4
Mobile Wallet Analysis............................................................................Error! Bookmark not defined.
Digital Payment Ecosystem .................................................................................................................6
eWallet growthin india.......................................................................................................................8
PayTMdissection................................................................................................................................8
Future of Digital Payments................................................................................................................11
Money All Time: Demand Forecasting & Pricing for the very first time

3. The structure of the case shouldhave the followingheads:
Overview
Data for Mobile Subscribers............................................................................................................... 1
Revenue breakup from Mobile Subscribers......................................................................................... 2
Data for Mobile Internet Subscribers.................................................................................................. 2
State vise distribution for Mobile Subscribers...................................................................................... 3
State vise distribution for Mobile Internet Subscribers ........................................................................ 4
Mobile Wallet Analysis............................................................................Error! Bookmark not defined.
Digital Payment Ecosystem ................................................................................................................ 6
eWallet growthin india...................................................................................................................... 8
PayTMdissection............................................................................................................................... 8
Future of Digital Payments................................................................................................................11

5. Overview:
The most concerningissue withIndiaisthe sudden ejectingof 86% of itscurrency fromcirculation
withouthavingasufficientsupplyof new notespreparedtoreplace them. Thissurprise demonetization,
additionallyaccomplishedsomethingelse:Itpushedmillionsof new usersontothe country’sdigital
economicgridbyvirtual fiat.
Indiaismore reliantoncash than almostany othercountry. Suddenly,thiscashdeficitsituation
arousedbythe governmentleada huge numberof individualsinvain,leftthem withoutthe meansto
engage economically,tobuythe thingstheywantedandneeded,andmyriadbusinesseswere left
withouta readilyavailable mechanismtoreceive paymentfortheirgoods,tobuysupplies,orpaytheir
staff.
Thisgave way to manytechnologystartupsenterintofierce competitionby jumpingintothe redocean
to gainmaximumcompetitive advantageallowing citizenstomake seamless digital transactions. Many
private digital walletsandstate ,national bankmobile paymentapplications have sprungup
For past 6 months,EncodingEnhancerscore technical groupanticipatedthe upcomingneedfor
“Frictionlesspayment”whichisindeedthe future of acashlessIndia.The core idea isbringingina
paymentmechanismthatiseffortlessi.e.easytofollow screenswithminimumclicks,withoutrequiring
usersto remembertoomanypasswords,PINsetc.,andabilitytomake paymentsonline aswell as
offline.ThisideapreemptedEncodingEnhancersto conceive anoffline digital paymentapplication
called“MoneyAll Time”.
Our primaryresearchbringsseveral interestinginsightstothe fore andvalidatesIndia’sreadinessto
adoptdigital payments.Convenience emerges tobe asimportantfor continual usage asdeals,discounts
and cash-backs.Consumersseemopentousingdigital paymentinstrumentsforneweruse-cases,
gravitatingtowardsoffline pointsof sale suchas organizedretail, foodandentertainment.Even so,the
habitto use cash, complexityof digital paymentinstrumentsandlimitedreachpose significantbarriers
for consumersinadoptingdigital.Similarly,while 75percentmerchantsbelieve thatadoptingdigital
paymentmethodswillhelpgrowtheirbusiness,complexityandlimitedadoptionhindermasstrial.
Accordingto AnantBhagwati,partnerBain& Company,3 thingsare importantforany payment option-
Interoperability,AccessandFinancial Stabilityof the operator.
Company background
"EncodingEnhancers",a successful profitableentityexistingsince lastover10 years.We are an
organizationwithproventrackrecordforsoftware consultancy,developmentandtestingwithefficient
International deliveries.

6. Our enterprise expertizeintostate of the art technologystacksindomainsencompassingTelecom,
Security,Cloud&Big Data enable ustotake thisleapforgettingintothe Digital Paymentrevolution.
Avoidinganotherrunof the mill solutions(i.e.anywalletproposition),we are aimingtoresolve mostof
the practical painareasof Indiancitizensincludinghomegrownmerchantsbyofferingthemaone stop
solutionfordigital payments. MONEYALL TIME isan answerto this!!!!!!
What is MAT?
 MAT fulfills regulatory framework and drives velocity of money all the time.
 MAT is aiming to break away the fear psychosis of transaction confirmation in atomic way.
 MAT technology for digital payments facilitate users to transact transparently through phones independent
of Internet/Mobile Signals
 MAT enables users to possess user friendly, simplified, multilingual, flexible means of money transaction in
India.
 MAT is secure, allowsanytime anywhere payment for over 700 million mobile subscribers independent of
the connectivity media (Internet/mobile) thus bridging ‘cash transaction’ information asymmetry with financial
services to the last mile.
Fig1: EncodingService Offerings

7.  MAT offers flexibility of payments to overcome botheration of the vendor preference for specific choice
on PayTM, FreeCharge or MobiKwik
 As per TRAI, India has a low internet penetration of 34.8%(2016) and MAT is designed to reach out for
bottom of the pyramid to encourage the rural Citizen (i.e. farmers, daily wage earners) adapt digital payment.
 MAT enables user to make instant seamless payments that allows paying directly from user's bank account
to anyone without sharing User’s personal account detail.
 MAT application is secured with PIN/Fingerprint having 2 Factor Authentication with full encryption
Money All Time - Business Model Canvas

8. Demand Forecasting
Encoding’smarketingresearchteamcame upwiththe following We expectthe digital payments space
to witness significant disruptioninthe daysahead,the crystal ball indicates seven trends setto
transformthe paymentslandscape inIndiaoverthe nextfive years:
Technologywill make digital payments simpler: Smartphone penetration,ubiquitousconnectivity,
biometrics, tokenization,cloudcomputingandthe Internetof Thingsare a few trendsthat will shape
the way consumerstransactinthe future.
Merchant acceptance network to grow 10X by 2020: Mobile basedpaymentsolutionsandproprietary
paymentnetworks will drive merchantacquisitionbyofferinglow-investmentsolutionsthatwillmake
economicsmore attractive formerchantsandacquirers,resultinginover10 millionmerchant
establishments thatwill acceptdigital /mobile payments.
Paymentswill drive consumption—andnotthe otherwayaround: Paymentswillprovideaccessto
customertransaction data,enablingpaymentservice providers(PSPs) toofferrelevantdeals,offers
and couponsto consumers,thereby influencingtheirconsumptiondecisions.
Consolidationwill drive ubiquity:Customerspreferfewer,ubiquitouspaymentsolutions.Niche or
limiteduse solutionswill be forcedto merge to offernearuniversal solutions.
ModifiedUPIwill be a game changer: UnifiedPaymentsInter- face (UPI) providesagreat platformfor
seamlessinteroperabilityof PSPs.Modifiedtoovercome currentchallenges,itcandrive large scale
adoptionof digital payments.
Digital identityto accelerate customer acquisition:UsingAadharfor online authenticationand
confirmationof KYCdata will boostgrowthof digital paymentsystems.
Cash to non-cash ratio will invert over the next tenyears: Digitisationof cashwill accelerate overthe
nextfewyears.Non- cashpaymenttransactions,whichtodayconstitute22percentof all consumer
payments,will overtake cashtransactionsby2023. Digital paymentsinstrumentswilldrive the growth
innon-cashpayments.
Our marketingresearch alsobroughtseveral interestinginsightsdetailedbelow.

9. Lessthan 10% are connectedwithDigital Paymentoutof 1250 Mn Citizenand1050 Mn mobile
users.(ReferExhibit1.0)
Bringingpartof this% to mainstream…BOOM…….Thisencouragedusto conceive India’sfirstOffline
Digital PaymentSolution
“Money All Time” aka MAT
Opportunity:
Digitization of paymentspresentsalarge opportunityinthe Indiancontext.Itisestimatedthatthe total
paymentsconductedviadigital paymentinstrumentswillbe inthe range of USD 500 billionby2020,
whichisapproximately10Xof currentlevels.Persontomerchant (P2M) transactions driven by
digital payments at physical point of sale,followedbybusinesstobusiness(B2B) andpeerto peer
(P2P) transactionsare expectedtobe majorcontributorsof growth.
While Indianplayershave triedvariousbusinessmodelstomonetise the paymentsopportunity,few
have attainedscale or profitability.
The primaryfocus hithertohasbeenoncustomeracquisitionandmonetisationmodelsare yettobe
fullyevolved.We outline aten- pointagendato accelerate the evolutionof asuccessful andeconomi-
callyviable paymentsplayinIndia:
Addresstrue customerneed:Itiscritical forPSPsto lookfor a way to solve paymentproblemsthat
customersface everyday,insteadof justofferingasolutionlookingforaproblem.

10. “Build for the base” with convenient, intuitive, easy to use and safe products:It isimperative to
buildsolutionsthatare “as easyas cash” to use,enable fasttransactions,andyetprovide adequate
protectiontocustomers’money

12. Revenue breakup from Mobile Subscribers
A huge opportunityliesinlookingafterthe revenuebreakupfrommobile subscribers.Looking at
(Exhibit1.1. ) we notice thatonly222.2% of the revenue of anyoperatoriscomingfromData usage
whereasthe revenue comingfromcallsis46.7%, so Telecomoperatorswant toincrease the Mobile
subscribers ,presently367.48 M (Exhibit1.2) insteadof Internetpenetration(the reasoncouldevenbe
the users unwillingnessto adopt the Internet).The presentdemonetizationconditionhasleadtothe
adventof a storm of digital payment applications/wallets whichrequire peopletobe connectedtothe
Internetandbe habitual tousingit onphone
However, Manyusersare unwillingto adaptto digital payments,astheyare habitual tousing cash .The
followingfigure below providesalistof reasonswhypeople are afraidof switchingtoacashlessmode.
Quoted:https://www.digitalerra.com/can-india-be-a-cashless-driven-country/

13. Why Digitize and become cashless
Optimise the networkeffectbybuildingaubiquitousnetwork: The bigpushfordigital paymentsinIndia
will come frommer- chant payments.Hence,to drive ubiquity,it is imperative to buildalarge
merchantacceptance network—acombinationof both digitallyenabledaswell asofflinemerchants.
Partner,Partner,Partner:Giventhe tighteconomicmodel of payments businesses,PSPs will need to
extensively partner inordertolowercustomeracquisitioncosts,offerabroadspectrum of solutions
and getaccess to a large distribution network.
Reduce entry barriers for customers—charge merchants andnotcustomers:PSPsneedtofindthe
rightpricingmodel todrive adoption,whereintransactioncharge iseitherleviedonmerchants (like
discountingrate) orwhenmoneyleavesthe digital ecosystem.
Mine customerdata to buildadditionalrevenue streams:PSPs can carry out analytics on large
volumes of transaction data to offerthe mostrelevantproducts/services/discountstothe right
consumerat the righttime and drive higher consumption.
Look beyondpayments—broadenfinancial servicestocon- sumptionneeds:PSPshave anopportunity
to expandtheir customerrelationshipbyofferingafull suite of financial services, and evenother
consumptionbasedproducts, inordertooptimallymonetise the relationship.
Developanecosystemtoaccommodate customerneeds:PSPs can developvertical orecosystem
basedofferingsthatprovide anend-to-endpaymentssolutiontocustomersinthese ecosystems.
Exploitnextgenerationtechnologiestobuildlow costandscalable solutions:Technologywill be critical
not onlytodeliversolutions that are convenient,simple and secure, but also to ensure thatthe
costs of customeracquisition,on-boardingandtransactions are minimal.
Scale,Scale,Scale:Attainingscale iscritical tomake the businessmodel of payments business viable.
PSPs that make boldmovesandbuildscale have agood opportunitytobuildaprofitable andvaluable
business.

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Finally,inamarketlike India,where regulationsare still evolving,itisimperative that the Government
and regulators take a long-term viewtobuildingasustainabledigitalpaymentsmarket.Regulators
needtoemphasise awarenessoncostof cash and incentivise the use of non- cash instruments,while
the Governmentneedstoshape policythatsimplifiesKYCrequirements,makingdigital payment
transactionsmore user friendly.Government investments in building merchant accep- tance
networks,settingupcommonpaymentsinfrastructure anddevel-opingaproperframeworkfor
grievance redressal are alsoessential.
Demand Forecasting:
Exhibit1.0
Data for Mobile Subscribers
Total Mobile Subscribers 1,049.74 Million
Urban Subscribers 603.80 Million
Rural Subscribers 445.94 Million
Urban Teledensity 151.10
Rural Teledensity 50.80
MonthlyAverage RevenuePerUser(ARPU) forAccessServices INR131

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Exhibit1.1
Revenue breakup from Mobile Subscribers
Table: Composition of ARPU per month - GSMService in QE Sep-16
Exhibit1.2
Data for Mobile Internet Subscribers
Total InternetSubscribers 367.48 Million
BroadbandInternetSubscribers 21.26 Million
WirelessInternetSubscribers 346.22 Million
Urban InternetSubscribers 247.69 Million
Rural InternetSubscribers 119.79 Million
Total InternetSubscribersper100 population 28.77
Urban InternetSubscribersper100 population 61.98
Rural InternetSubscribersper100 population 13.65
Data Usage persubscriberpermonth - GSM 235.91 MB

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State wise distribution for Mobile Subscribers
Table: Service Area wise Rural-Urban Total Mobile Subscribers – Sep-16

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State vise distribution for Mobile Internet Subscribers
Table: Service Area wise number of Internet Subscribers per 100 population at the end of Sep-16

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Digital Payment Stakeholders

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Digital Payment Ecosystem
Quotedfrom:https://www.nfcworld.com/2016/03/14/343274/nielsen-reports-on-mobile-wallet-
market-in-india/

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Figure: Nielsen’s research ranks mobile wallet usage in India
Ref:http://www.altimetrik.com/wisdometrik/mobile-wallets-market-opportunities-and-challenges/

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eWallet growth in india
PayTM dissection

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(Offline doesn’t mean what we are doing – here it means that the it is used by non-ecommerce
merchants)

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Future of Digital Payments