This was presented in December by mPay Connect at the Mobile Money Transfer Conference in Manila

1. MMT APAC Presentation
Developing the business case for your MMT service
MNO- JV or FI-
Driven 3rd Party Driven
• Market Power, Brand Power, & Footprint
• Regulatory environment in geography
• Existing infrastructure in region
Menekse Gencer
Mail: mgencer@mpayconnect.com
Mobile Money Transfer Conference
Skype:APAC the Business Case for Your MMT Service
MMT meneks80
Developing ©mPay Connect, Inc. 7, 2009
12/17/2009 1
December 1
Company: 2009
December www.mpayconnect.com
MMT APAC: December 7, 2009 mgencer@mpayconnect.com

2. mPay Connect Consulting
Menekse Gencer
• Consulting Services for clients seeking to launch mobile financial services
• Business Development, Product Strategy, Go-to-Market Strategy
• Mobile Payments engagements have included:
• FIs: PayPal, Citigroup, Wells Fargo
• MNOs: SKTelecom, PrePaid North American MNO
• Other: non-profits, platform companies
• Board Member, Mobile Money Africa, Mobile Payments Series (Harvard & Wharton)
• Linked in Group: Mobile Payments Series – mPay Connect
mgencer@mpayconnect.com
www.mpayconnect.com
www.twitter.com/mpayconnect
Developing
MMT APAC the Business Case for Your MMT Service ©mPay Connect, Inc.
MMT APAC: December 7, 2009
December 2009 2 mgencer@mpayconnect.com

3. Agenda
1.Value Proposition for Key Stakeholders
2.Different Business Models
3.What does interoperability mean?
4.Choosing the right model
MMT APAC ©mPay Connect, Inc.
December 2009 3 mgencer@mpayconnect.com

4. Agenda
1.Value Proposition for Key Stakeholders
2.Different Business Models
3.What does interoperability mean?
4.Choosing the right model
MMT APAC ©mPay Connect, Inc.
December 2009 4 mgencer@mpayconnect.com

5. Value Proposition for Key Stakeholders
MNOs Platforms FIs
+ Revenue
+ Revenue - Costs
- Churn
+ Revenue
Regulators
+Financial Inclusion
+Socio-Economic Development
©mPay Connect, Inc. +Tracking AML/CFT
Developing
MMT APAC the Business Case for Your MMT Service ©mPay Connect, Inc.
MMT APAC: December 7, 2009
December 2009 5 mgencer@mpayconnect.com

6. Agenda
1.Value Proposition for Key Stakeholders
2.Different Business Models
3.What does interoperability mean?
4.Choosing the right model
MMT APAC ©mPay Connect, Inc.
December 2009 6 mgencer@mpayconnect.com

7. MMT Value Chain Responsibilities
Note: Simplified model.
Customer acquisition, account
management, not included
Value Chain
MNO Network Hold Deposits,
Take Cash In Move Money
for data Cross border
Cash Out (Settle)
transmission Forex
Operational Operate Agent network Move money Hold Deposits
Responsibilities Network as usual Take funds in Interest Bearing Accounts
Certify Apps Convert to electronic Cross border Forex
Disburse cash
Regulatory
Responsibilities None KYC, AML/CFT KYC, AML/CFT KYC, AML/CFT, Bank License
eMoney License All requirements of banks
MMT APAC ©mPay Connect, Inc.
December 2009 7 mgencer@mpayconnect.com

8. MMT Models
Note: Simplified model.
Customer acquisition, account
management, not included
MMT Value Chain
MNO Network Hold Deposits,
Take Cash In
for data Move Money Settle
Cash Out
transmission (Forex)
FI-Led
Business Models
MNO as Bearer MNO Bank or Third Party Bank
MNO as Agent MNO Bank or Third Party Bank
MNO as Money
MNO Bank
Mover
MNO as Bank MNO MNO-Led
©mPay Connect, Inc.
MMT APAC ©mPay Connect, Inc.
December 2009 8 mgencer@mpayconnect.com

9. Value Proposition (MNO vs. FI)
for different models
Note: Simplified model.
Customer acquisition, account
management, not included
MMT Value Chain
MNO Network Hold Deposits,
Take Cash In
for data Move Money Settle
Cash Out
transmission (Forex)
MNO = Bearer None to minimal Most Revenue + *FI cost savings= reduce transactions costs by up to 99%
MNO = Agent **Up to 60% transaction revenue 40% of transaction rev. + Float
MNO = Money
Mover Majority (transaction) Float
MNO = Bank 100% (transaction + Float)
©mPay Connect, Inc.
*Source: FiServe Report
** Source: MMT Africa
MMT APAC ©mPay Connect, Inc.
December 2009 9 mgencer@mpayconnect.com

10. Agenda
1.Value Proposition for Key Stakeholders
2.Different Business Models
3.What does interoperability mean?
4.Choosing the right model
MMT APAC ©mPay Connect, Inc.
December 2009 10 mgencer@mpayconnect.com

11. What Does Interoperability Mean?
Mobile Money: Banked Customers
Banks = Customer Account Holders Send/Receive between any
Networks settle transactions among FIs mobile network
Standards
Bilateral
Agreements
Hub/Switch
MMT APAC Connect, Inc.
©mPay
©mPay Connect, Inc.
December 2009 11 mgencer@mpayconnect.com

12. What Does Interoperability Mean?
Mobile Money: Unbanked Customers
MNOs or 3rd Parties = Send/Receive money with any
Customer Account Holders other Mobile Money System
Standards
Bilateral
Agreements
Hub/Switch
MMT APAC Connect, Inc.
©mPay
©mPay Connect, Inc.
December 2009 12 mgencer@mpayconnect.com

13. When is interoperability important?
Fragmented market Extending beyond MMT:
share of wallet
Mobile Financial Services
Mobile Payments
Mobile Payments Mobile Microfinance
Mobile Microfinance Mobile Banking
Mobile Banking
P2P C2B B2B B/G 2C Loans Transactional Informational
• Mobile Money Transfer • Mobile online • Replace cash • Salary • Disbursement • Mobile bill payment • Alerts
• Domestic or International (e.g. eBay or ringtones) in supply chain disbursements • Repayment • Brokerage • Account balance &
Mobile remittances • At store • Pensions history
(proximity payments) • Rebates
©mPay Connect, Inc.
©mPay Connect, Inc.
MMT APAC ©mPay Connect, Inc.
December 2009 13 mgencer@mpayconnect.com

14. Agenda
1.Value Proposition for Key Stakeholders
2.Different Business Models
3.What does interoperability mean?
4.Choosing the right model
MMT APAC ©mPay Connect, Inc.
December 2009 14 mgencer@mpayconnect.com

15. Examples world-wide
MNO- JV or FI-
Driven 3rd Party Driven
©mPay Connect, Inc.
MMT APAC ©mPay Connect, Inc.
December 2009 15 mgencer@mpayconnect.com

16. What Model is the Right One?
Workshop Exercise
Regulatory Targeted Market
Assets
Environment Customer Base Dynamics
Flexibility? Banked or Unbanked? Dominated or Brand Trust?
Perceived Risk? Existing alternatives to fragmented? Retail Footprint?
banking/ payments Infrastructure? Operational abilities?
New model or New service? Interoperability? Likelihood of success?
new channel? New customer?
Transformational?
©mPay Connect, Inc.
MMT APAC ©mPay Connect, Inc.
December 2009 16 mgencer@mpayconnect.com

17. Thank you!
Menekse Gencer: mgencer@mpayconnect.com
www.mpayconnect.com
www.twitter.com/mpayconnect
Linked In Group: “Mobile Payments Series –
mPay Connect”
Developing
MMT APAC the Business Case for Your MMT Service ©mPay Connect, Inc.
MMT APAC: December 7, 2009
December 2009 17 mgencer@mpayconnect.com