Mobile Money: The Foundation for all Industries in Cash-Based Economies

Mobile Money: The Foundation for all Industries in
Cash-Based Economies

mPay Connect, Inc.

©mPay Connect, Inc.
1 info@mpayconnect.com

agenda

1. background
2. why mobile money?
3. uses in the field

2 2
info@mpayconnect.com

background

6/29/2011
3 3

mPay Connect Consulting
Global Team for Mobile Financial Services
mPay Connect – Global Affiliate Team
Canada: Led Product Development for MNO
Consortium to launch mobile payments system
Canada: Architected and oversaw the development of the
NFC/Mobile commerce infrastructure in Canada together
with Canadian members of the GSM Association, CDMA
carriers, FI’s, associations and processors China: Chief interlocutor for PayPal on branchless
Europe: Developed global market strategy payments with the Peoples Bank of China
North America: Led PayPal for Fortune 500 firm for mobile money
Mobile Business Development Bangladesh: Developed bKash Business Plan
for North America (JV with BRAC). Awarded $10 million.
Nigeria: Worked with client banks
Mexico: Chief Jamaica: Developed on interpreting Central Bank of India: For leading FI, Asia: Developed online payments
interlocutor for Regulatory policy Nigeria mobile regulations and created Mobile Airtime AML standards with FATF, which
PayPal on branchless recommendations for provided consortium currency were incorporated in 2009 typology,
payments with the Central Bank. recommendations recommendation and stored value and branchless banking
government of cross boarder airtime for payments in Singapore and other
Kenya: Advisor to
Mexico Latin America: Chief global regulatory negotiator for processing platform countries in Asia
startup mobile
PayPal, with responsibility for Central Banks and other money platform
national regulators, World Bank, and Inter-American Kopo Kopo Australia: Assisted local country
Development Bank; specific expertise in financial managers in launching PayPal
services licensing in the PRC, and Latin America South Africa: Launched branchless Mobile
banking services via USSD/WAP/SMS

6/29/2011
4 4

mPay Connect Consulting
Join our Linked In Group: Mobile Payments Series – mPay Connect

• Representative Clients:

• World Economic Forum
• United Nations Foundation (mHealth Alliance)
• bKash: Bangladesh Joint Venture between BRAC and Money in Motion
• Jamaican Central Bank
• Inter-American Development Bank
• 3 of the 4 largest banks in the U.S.
• Global mobile operators
• Publications:
• World Economic Forum, The mHealth Alliance, “Amplifying the Impact: Examining the
Intersections between Mobile Health and Mobile Money,” (January 2011) for Davos Annual
Summit.
• Innovations Magazine (MIT Press) (June 2011) on “(The) Mobile Money Movement: Catalyst to
Jumpstart Emerging Markets”
• Inter-American Development Bank: “Addressing Gender Concerns around Mobile Money
Access in Jamaica”

5 5

why mobile money?

6/29/2011
6 6

mobile money =
foundation for all industries in cash-dependent markets

mHealth, Off-Grid Energy, Food Security, Disaster Relief

Mobile Financial Services
salary, payments, savings, insurance, credit

7 7 7

mobile money defined

Using the mobile phone as a channel
to conduct payments, account management, and
other financial services
6/29/2011
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mobile money = (mobile) financial services

Mobile Financial Services

Mobile Payments Mobile Microfinance
Mobile Finance Mobile Banking
Mobile Banking

Credit, Savings,
P2P C2B B2B B/G 2C Insurance Transactional Informational
• Mobile Money Transfer • At store • Replace cash • Salary • Disburse, Repay • Mobile bill payment • Alerts
• Domestic or International (proximity payments) in supply chain disbursements • Savings, Insurance • Brokerage • Account balance &
Mobile remittances • Mobile online • Pensions • Insuran history
(e.g. eBay or ringtones) • Rebates
• Micropayments (to bill)


increases financial access
World Economic Pyramid
Banks

500 Mill
*>$20k/yr

Unbanked,
2 Billion Mobile
*$3260 to $20k/yr
Opportunity:
1.7 Billion in
Today 2012

4 Billion 2012 Source: CGAP

*<$3260/yr or <$9/day

Source: World Resources Institute
(*Individual Annual Income: 2005 USD Purchasing Power Parity)


reduces costs of financial services

$ 4.00
Branch

$ 3.75
Live Rep
$ 1.50
IVR
$ .08
Mobile

©mPay Connect,
Inc.


Case Study:
Kenya’s mPesa takes off like Wildfire
Mobile money transfers via SMS
– Mobile payment system built using SMS messaging
How mPesa is used:
– Send money (Agent)
– Receive money (Agent)
– Pay for things (Merchant, Bills, etc.)
Now
Registered Customers 14 million!
8,000,000
7,000,000 7,000,000
6,000,000 (~50%
5,000,000 Safaricom base)

4,000,000
3,367,192
3,000,000
2,000,000
1,000,000
0 268,499

July 2007 July 2008 July 2009


healthcare

6/29/2011
13 13

mHealth and MFS are inextricably linked by
common building blocks and cross-sector dependencies

Prosperity
Wealth Health

Mobile Pay for mHealth
Financial mHealth
Services Use case for MFS

Policy Concerns
Business Elements
Infrastructure
Users


Mobile

Using MFS to spur mHealth
Financial mHealth
Services

e.g. Maternal Continuum of Care

WHO-MNCH
Pre-
Continuum of Pregnancy
Pregnancy Birth Postnatal
Care

• Conditional Cash Transfers
• Prepaid savings accounts
Patient Level • Micro-Insurance
• Payments (ambulatory,
health information)

• Voucher payments
• Supply chain
Provider / Service Level • Data retrieval / decision
support
• Management services
• Testing, Labs, Diagnostics

• Salary Disbursements
HR / Administrative Level •
•
Performance-based Funding
Conditional Cash Transfers
• Expense payouts


food security

6/29/2011
16 16

issue: precarious cycle further exacerbated by
lack of financial services

Can’t invest

Crop
Output Less Money
Down

Turn to Sex Work
Less Farming

Can’t buy
food

Caretaker Burden
Up
Malnutrition/
Illness


innovations

6/29/2011
18 18

Mobile Financial Services: Lease-to-Buy
for Off-Grid Energy


Mobile Vouchers and Micro-Savings
for Food and Healthcare
Mobile Vouchers Prepaid Savings
with Mobile Top-up


Mobile Micro-Insurance for
Small Holder Farmers
Syngenta’s Kilimo Salama in Kenya


Contact us:

info@mPayConnect.com

6/29/2011
22 22

Mobile Money: The Foundation for all Industries in Cash-Based Economies

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Mobile Money: The Foundation for all Industries in Cash-Based Economies