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MOBILE MONEY
• The definition o...
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CHANGING WORLD
• According to A...
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Transaction Against Delivery
Tr...
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JAPAN, KOREA & KENYA
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MOBILE OPERATORS CHALLENGE
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REVENUE IS GOING DOWN
Average R...
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COLLABORATIVE MODEL
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THE OPPORTUNITY
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Financial in...
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THE OPPORTUNITY - M MONEY Chann...
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THE CHANGING ORDER
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21.3...
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M MARKET
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M PAYMENT IS FUTURE
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2013 Ind...
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KUWAIT MARKET POTENTIAL
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KUWAIT KEY DATA
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Annual Remit...
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THE OPPORTUNITY
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Ooredoo – To...
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It is fully software independen...
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HIGHLIGHTS OF FINANCIAL ANALYSI...
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MPAYSAFE MIDDLE EAST RESELLER E...
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THE SUBSCRIBER PROJECTIONS
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THE REVENUE PROJECTIONS
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Mobile Wallet - Tech Startup - $1 Billion Opportunity

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The market is changing. The future is changing. The banking and telecom business are challenging each other. The shift is clearly see. This is fusion of Banking and Telecom opportunity. This is future for both. This is One of best Tech Startup from Kuwait. Looking to be $1 Billion Startup.

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Mobile Wallet - Tech Startup - $1 Billion Opportunity

  1. 1. Contact Us Email : zia@ventureart.biz Whatsapp : +965 67086552 Website: www.ventureart.biz Contact Us Email : zia@ventureart.biz Whatsapp : +965 67086552 Website: www.ventureart.biz Your Mobile Your Bank Investing opportunity in future banking
  2. 2. Contact Us Email : zia@ventureart.biz Whatsapp : +965 67086552 Website: www.ventureart.biz Contact Us Email : zia@ventureart.biz Whatsapp : +965 67086552 Website: www.ventureart.biz MOBILE MONEY THE FUTURE IS HERE NOT AN OPTION .. NOT A LUXURY BUT A NECESSITY 2 Contact Us Email : zia@ventureart.biz Whatsapp : +965 67086552 Website: www.ventureart.biz
  3. 3. Contact Us Email : zia@ventureart.biz Whatsapp : +965 67086552 Website: www.ventureart.biz 3
  4. 4. Contact Us Email : zia@ventureart.biz Whatsapp : +965 67086552 Website: www.ventureart.biz MOBILE MONEY • The definition of “mobile money” varies across the industry as it covers a wide scope of overlapping applications. In general, mobile money is a term describing the services that allow electronic money transactions over a mobile phone. It is also referred to as mobile financial services, mobile wallet and mobile payment. In this report, we define mobile money as a broader term that includes all types of monetary transactions executed via mobile phones. • A wide range of mobile money applications have developed throughout the years. Some major categories include: • 1. Mobile banking — use of a mobile phone to remotely access a bank account, primarily for account balance checkup and bill payment services • 2. Mobile money transfer (remittance) — a peer-to-peer application making use of a mobile phone to send money to family or friends, primarily across international borders • 3. Mobile commerce (payment)— use of a mobile phone to perform financial transactions for purchases or sales, either remotely or on-site, retrieve promotion information or coupons, and deliver gift items 4
  5. 5. Contact Us Email : zia@ventureart.biz Whatsapp : +965 67086552 Website: www.ventureart.biz CHANGING WORLD • According to Accenture report in 2013, by 2020, Banks could lose 15 percent of their market share to technology companies. • Gartner Report predicts, Global mobile transaction volume and value to average 35 percent annual growth between 2012 and 2017, expected to grow to worth $721 billion with more than 450 million users by 2017. • Overall, the whole mobile ecosystem’s revenue was US$1,551 billion in 2012, equivalent to 2.2% of global GDP. 5
  6. 6. Contact Us Email : zia@ventureart.biz Whatsapp : +965 67086552 Website: www.ventureart.biz Transaction Against Delivery Transaction Not Against Delivery Operate Without Logging on to banking portal Operate after Logging on to banking portal MobileMoneyTransfer (Remittance) MobileBankingMobileBanking Mobile Commerce (Payment) 6
  7. 7. Contact Us Email : zia@ventureart.biz Whatsapp : +965 67086552 Website: www.ventureart.biz JAPAN, KOREA & KENYA • Japan is world’s third biggest economy. Over 70 million people in Japan own tap-and-go phones, and their use is on the rise. In contrast, 78 million Japanese use mobile-wallet enabled cell phones. • Japan has the largest number of subscribers. Japan, has highest number of NFC-enabled cards and phones, it has the highest penetration in the world. • Korea -Since the end of 2013, the population of Korea has reached about 48 million. However, the number of mobile phone subscribers is roughly 54.8 million, including 37.8 million smartphone users as of January 2014. This means that the majority of the population is using smartphones, and the dependence on smartphones and applications is stronger today than ever before. • Due to this vast spillover of a mobile lifestyle, the size of mobile shopping is increasing from 4.5 trillion won in 2013 to more than 10 trillion won this year, according to the Korea On-Line Shopping Association (KOLSA). • The number of registered users for mobile smartphone banking in Korea rose 55% from 13.2 million users in 2012 to 37.1 million at the end of 2013. According to the central bank, transactions made via mobile banking were valued at 1.37 trillion won per day in 2013, rising 59% from the previous year. The number of inquiries per day was 21.3 million a day in 2013, growing 66.5% since 2012.With the boom of mobile banking and shopping, mobile wallet and mobile payment is becoming more prominent. • M-PESA is a mobile phone–based money transfer service launched in 2007 in collaboration with Kenya’s dominant mobile network operator (MNO), Safaricom. M-PESA was started and is owned by Vodafone. • M-PESA has been highly successful and, along with two m-money companies in the Philippines, is the best example of a typical m- money service for the unbanked and under-banked. Initially launched in 2007 for person-to-person (P2P) transfers,1 by 2010, M-PESA had more than 9.4 million customers (figure 2.1) and more than 18,000 agents, and accounted for US$5.27 billion in P2P transfers. There is scarcely a household in Kenya that is not an M-PESA user. Between March 2009 and March 2010, more than 13 percent of the Kenyan gross domestic product (GDP) was transferred through M-PESA. • As a money transfer service, M-PESA started by serving the needs of the many families split between rural and urban areas. It has since grown to provide many other financial services (but not utility or public transport payments). 7
  8. 8. Contact Us Email : zia@ventureart.biz Whatsapp : +965 67086552 Website: www.ventureart.biz MOBILE OPERATORS CHALLENGE • Despite the growth in usage of voice and SMS and increasing numbers of data subscriptions, ARPU rates have declined across every region globally. The overall global ARPU rate has fallen by 7.6% p.a. from US$19 to US$14 per month, with the highest reductions in 2010-2012 seen in Africa (-10% p.a.) and Europe (-7% p.a.). • The falling ARPU rates indicate that average mobile tariff prices have been decreasing. In some cases this could reflect price decreases but it is also being driven by the growth of multi-SIM in developed markets, where a user’s second SIM is on a lower tariff, perhaps for personal use or data use only. In developing countries it is also a consequence of the market opening up to lower income segments which have a lower ARPU. 10
  9. 9. Contact Us Email : zia@ventureart.biz Whatsapp : +965 67086552 Website: www.ventureart.biz REVENUE IS GOING DOWN Average Revenue Per Second Average Revenue Per User 11 Source: GSMA Wireless Intelligence, Merrill Lynch, A.T. Kearney Analysis GLOBAL ARPU US$ Per Month GLOBAL ARPU US$ Per Month
  10. 10. Contact Us Email : zia@ventureart.biz Whatsapp : +965 67086552 Website: www.ventureart.biz COLLABORATIVE MODEL 12 Source: Portio Research 2010
  11. 11. Contact Us Email : zia@ventureart.biz Whatsapp : +965 67086552 Website: www.ventureart.biz THE OPPORTUNITY 13 Financial institutions around the world compete against one another trying to attract and retain the same middle- to upper-income retail customers year after year. Yet there is an enormous market that most banks are ignoring — and that nonbank competitors have begun to cultivate effectively: the world’s 2.7 billion adults who are either unbanked or under banked. More than 2.7 billion people in developing countries do not have access to basic formal financial services, such as savings and checking accounts. Mobile technology is a channel that, once in place, allows for the delivery of other low-cost financial services bringing banking to unbanked and underserved people.
  12. 12. Contact Us Email : zia@ventureart.biz Whatsapp : +965 67086552 Website: www.ventureart.biz THE OPPORTUNITY - M MONEY Channel • As predicted in WPR 2012, the global m-payments market continues to grow rapidly, powered by innovation and demand. In line with industry estimates, the global m-payments value reached $256 billion in 2012, and is expected to grow three-fold by 2014 to a total of $796 billion. • Peer-to-peer (P2P): As domestic money transfers or international remittances. • Consumer-to-business (C2B): As retail payments at stores, mobile online payments such as those made on eBay or to purchase ringtones . (using the payment application built for the mobile.) • Business-to-business (B2B): To replace cash in the supply chain, in some regions such as Africa. • Business/Government-to-Consumer (B2C/G2C): For salary disbursements and pensions–these payments are largely seen in African markets where infrastructure for other payment instrument is under-developed, and innovations such as mobile money help incoming payments reach beneficiaries. • With increased uptake of mobile payments in 2012, the industry has predicting 58.5% growth in mobile payments to 2014 14
  13. 13. Contact Us Email : zia@ventureart.biz Whatsapp : +965 67086552 Website: www.ventureart.biz THE CHANGING ORDER 15 17.9 21.3 25.4 29.9 34.8
  14. 14. Contact Us Email : zia@ventureart.biz Whatsapp : +965 67086552 Website: www.ventureart.biz M MARKET 16
  15. 15. Contact Us Email : zia@ventureart.biz Whatsapp : +965 67086552 Website: www.ventureart.biz M PAYMENT IS FUTURE 17 2013 Industrial Estimate M.PaymentTransactions(Billions) Number of Global M-Payment Transactions (Billions) 2010 – 2014F
  16. 16. Contact Us Email : zia@ventureart.biz Whatsapp : +965 67086552 Website: www.ventureart.biz 18
  17. 17. Contact Us Email : zia@ventureart.biz Whatsapp : +965 67086552 Website: www.ventureart.biz KUWAIT MARKET POTENTIAL 19
  18. 18. Contact Us Email : zia@ventureart.biz Whatsapp : +965 67086552 Website: www.ventureart.biz KUWAIT KEY DATA 20 Annual Remittances Zain 40% Oredoo 36% Viva 24% MNO Market Share
  19. 19. Contact Us Email : zia@ventureart.biz Whatsapp : +965 67086552 Website: www.ventureart.biz THE OPPORTUNITY 19 Ooredoo – Total Subscribers 1.9 million Viva – 1 million KBE (Kuwait Bahrain Exchange)– 25 Branches – 2500 Transactions a Day KIB (Kuwait International Bank) – 300,000 account holders Al Mulla Exchange Merchants – 10 Merchants – 1000 Shops
  20. 20. Contact Us Email : zia@ventureart.biz Whatsapp : +965 67086552 Website: www.ventureart.biz It is fully software independent and can smoothly migrate from one supplier to another. Current product offering is mWallet as a service for Kuwait eco-system Mobile Payment • Bill Payments • Retail purchases • Mobil Remittance • Loyalty program • Campaign Management CURRENT PRODUCTS & SERVICES 30
  21. 21. Contact Us Email : zia@ventureart.biz Whatsapp : +965 67086552 Website: www.ventureart.biz HIGHLIGHTS OF FINANCIAL ANALYSIS 1. Capital of KD1m through 10m Shares of 100Fils per share 2. Available shares 6m Shares. 3. Operation will be EBITDA positive from second year 4. The operation will break even on the second year and will be self sustaining thereafter. 5. Revenue forecast to start with is primarily from Oredoo, Viva, KBE and Merchants as well as rental income from POS terminals. 6. First year net revenue is estimated at KD 829K which will increase steadily to KD 2.1 Million by second year. 7. The operation will have accumulated KD 22.09 Million cumulative profits by sixth year 8. The present based on sixth year estimated cash flow is KD 19.19 Million which has a present value of and exit valuation of 79 million at multiples of 7. 9. The revenue model is fully based on transactions fees for all payments and fixed fees for loyalty and campaign management. 32
  22. 22. Contact Us Email : zia@ventureart.biz Whatsapp : +965 67086552 Website: www.ventureart.biz New revenue channels being developed to be added to current portfolio of products and services. 1. Currently negotiating with two providers for Airtime Aggregator 2. International utilities bill payments 3. Mobile Wallet Micro-financing Currently Negotiating with Connecting Worlds 4. Virtual Credit Card Undergoing final negotiations with MasterCard NEW PRODUCTS & SERVICES 34
  23. 23. Contact Us Email : zia@ventureart.biz Whatsapp : +965 67086552 Website: www.ventureart.biz MPAYSAFE MIDDLE EAST RESELLER EXPANSION PLANS Iran Iraq Lebanon Qatar Oman UAE Kuwait 35
  24. 24. Contact Us Email : zia@ventureart.biz Whatsapp : +965 67086552 Website: www.ventureart.biz THE SUBSCRIBER PROJECTIONS 51
  25. 25. Contact Us Email : zia@ventureart.biz Whatsapp : +965 67086552 Website: www.ventureart.biz THE REVENUE PROJECTIONS 52 Ooredoo 110,862 256,879 384,035 574,132 858,327 1,283,200 Viva 41,053 97,235 151,686 236,630 369,143 575,863 KBE 89,769 134,653 201,979 302,969 454,453 681,680 Al Mulla 130,072 195,108 292,662 438,994 658,490 987,735 Merchant 109,717 164,576 246,864 630,874 504,699 833,165 POS 163,800 498,960 951,048 1,462,104 1,973,160 2,484,216 KIB Merchant 140,896 641,605 1,251,129 2,168,624 3,524,013 5,497,461 KIB Wallet 43,394 120,289 173,215 249,430 359,180 517,219 Total WalletIN 829,562 2,109,304 3,652,619 6,063,756 8,701,466 12,860,539
  26. 26. Contact Us Email : zia@ventureart.biz Whatsapp : +965 67086552 Website: www.ventureart.biz MpaySafe Revenue Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Ooredoo 110,862 256,879 384,035 574,132 858,327 1,283,200 Viva 41,053 97,235 151,686 236,630 369,143 575,863 KBE 89,769 134,653 201,979 302,969 454,453 681,680 Al Mulla 130,072 195,108 292,662 438,994 658,490 987,735 Merchant 109,717 164,576 246,864 630,874 504,699 833,165 POS 163,800 498,960 951,048 1,462,104 1,973,160 2,484,216 KIB Merchant 140,896 641,605 1,251,129 2,168,624 3,524,013 5,497,461 KIB Wallet 43,394 120,289 173,215 249,430 359,180 517,219 Total Revenue 829,562 2,109,304 3,652,619 6,063,756 8,701,466 12,860,539 MPaySafe Share of Direct Cost 153,973 362,026 602,531 1,032,842 1,489,308 2,298,925 Gross Profit 675,589 1,747,278 3,050,088 5,030,915 7,212,158 10,561,614 Profit EBITDA 675,589 1,747,278 3,050,088 5,030,915 7,212,158 10,561,614 H R Investment 225,600 270,720 270,720 270,720 270,720 270,720 Rent,Rates, Taxes 25,300 26,059 26,841 27,646 28,475 29,330 Utilities 2,400 2,472 2,546 2,623 2,701 2,782 Administrative Expenses 97,440 100,363 103,374 106,475 109,670 112,960 Marketing and Promotion 43,400 108,652 111,912 115,269 118,727 122,289 Royalty and Know How 79,750 82,143 84,607 87,145 89,759 92,452 Cost 473,890 590,409 599,999 609,878 620,052 630,532 EBITDA 201,699 1,156,870 2,450,089 4,421,037 6,592,106 9,931,082 Depreciation 116,478 213,222 308,285 369,369 415,381 446,056 Amortization 91,667 91,667 91,667 91,667 91,667 91,667 Profit- (6,446) 851,981 2,050,137 3,960,001 6,085,058 9,393,359 Net Profit (6,446) 851,981 2,050,137 3,960,001 6,085,058 9,393,359 Income Statement-Profit and Loss Statement 55 P AND L
  27. 27. Contact Us Email : zia@ventureart.biz Whatsapp : +965 67086552 Website: www.ventureart.biz Contact Us Email : zia@ventureart.biz Whatsapp : +965 67086552 Website: www.ventureart.biz Thank You

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