The article is available in papaulsblog in www.worpress.com in the link http://wp.me/p1ZsI2-4g A power point presentation on the topic is in Slideshare and also available in the following link >>> http://wp.me/p1ZsI2-ht (To open cut and past the link in your browser)

1. 1
Universal Money un-
of people in the lower strata across the country.
Click the link to open the document: http://wp.me/p1ZsI2-4g
Also please see my blog 'Phones can save fuel, time and effort and cost of printing
money' htt://wp.me/p1ZsI2-8j p
Introduction: Universal money management using phone, a path breaking state of the
art idea to enable all sorts of day to day money transactions through phones is a non-
banking product that will accelerate F inancial Inclusion of people in lower economic
strata across the country and will become an effective tool for supporting their Micro
Finance needs.
Money through Mobile (MTM), is just an acronym used herein that explain in short the
idea, features, products, services, the technology involved, the business aspects and the
need and advantages it can provide to society as a whole.
Please see the PDF presentation on MTM attached. in papaulsblog.wordpress.com
Money Through Mobile Simple schematic.
MTM System
PSTN
PLMN
ST VOM
USS USS
P SSP SCP SMP
MTM Mobile
users ADM
VENDORS, SERVICE
PROVIDERS ETC.
INTERNET
PAYMENT FOR
COMMODITIES AND
ST
MULTIPLE MOBILE MTM -ATM
KIOSKS MTM
SIM SET TOP BOX
Franchise
Mobile Switching systems
SB
and access Networks Accoun
Post Offices
BANKS
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1. Money through Mobile (MTM) is different from Mobile Banking.
1.1. Money through Mobile (MTM) is different from Mobile banking: At the outset,
Money through Mobile (MTM) is not to be confused with mobility in Banking service or
service of e-banking using Mobile phones as being currently provided by banks.
other financial institutions; will in the same position and functional level, using same
product technology at par with other MTM users.
1.2. Money through Mobile (MTM) will not disrupt Banking Industry. There is this
biggest myth that Un-banked Pay-by-Phone service will be disruptive to Banking
industry. From the foregoing it can be seen that the fact is actually other way around.
2. Money through Mobile (MTM) can do all sorts of money management by phone.
Money Through Mobile for Financial Inclusion of all.
Mobile users Mobile Gateway MSC
In the PLMN Switching
Centers Other
PLMNs
MTM System
S
T
Workers, Contractors,
Physicians, Taxis/Autos.
mTm-
acc
Savin
Small Shop owners, INTERNET
gs
Merchants, Vendors, Post Offices
Coffee shops.
Small Money
Lenders,
Malls, Utility Service Institutions. Petrol
Commission
Super Providers, Schools, Bunks
Agents.
Markets. Ticket vendors, Hospitals,
MTM- BANKS
Vending machines. Business
ATM
units.
SIM enabled Set Top Box KIOSKS
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2.1. Money through Mobile (MTM) as a Pay-by-Phone mechanism. Money through
Mobile (MTM) is envisaged as a Pay-by-Phone service that enable easy payment
mechanism to directly transact (receive and send) virtually all forms day-to-day
micro/macro e-payments such as payment of utility service bills, taxes and service
charges, School and College fees, Payment to job contractors and job workers by
employers to employees, Bill payment in shops, sales outlets & malls, cinema halls,
petrol bunks, various travel ticket vendors and at vending machines, Taxi and auto fares,
Road and Bridge toll payments, vehicle parking charge, quick transfer of money to
friends, spouse, pocket money to children etc,.
2.2. Money through Mobile (MTM) for the welfare of the people: Money through
Mobile (MTM) enable Financial inclusion of people by sending the Salary / Pension of
(NREGA), Right to food, Right to Education and Health care, and various forms of
pensions, payments related to interest, dividend, bonus, deposits, etc., without involving
Banks, Post offices, Credit card companies and other money transfer agencies.
DISPERSAL OF WELFARE PAYMENTS TO
BENEFICIARIES
VARIOUS WELFARE FUNDS
AS BUDGETTED BY FEDERAL GOVERNMENT
VARIOUS WELFARE FUNDS
AS BUDGETTED BY STATE GOVERNMENTS
DISTRICT LEVEL LOCAL WELFARE AUTHORITIES
DISTRICT LEVEL AUTHORISED BANKS
GSM NETWORK
WELFARE FUND REACHED IN BANK A/C
MTM SERVICE PROVIDER SYSTEM
MTM-ATM KIOSKS MTM ACCOUNT HOLDERS (BENEFICIARIES)
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2.3. Money through Mobile (MTM) for Micro-finance support: Money through
Mobile (MTM) enable Micro-finance support of all sorts ofmicro/macro money lending
on personal basis, by Micro-finance agencies and franchisees.
Scope of business for SMEs MTM
MTM
MONEY BORROWERS APPROACH
MICRO FINANCE COMPANIES
T
E
N
M
O
C
F
GSM NETWORK
MICRO FINANCE COMPANIES
L
U
A
P
M
A
H
A
R
B
A
P.
MTM ACCOUNT OF BORROWERSF
O
Y
T
R
E
P
O
R
P
L MFC S MTM ACCOUNT
A
U
T
C MTM SERVICE PROVIDER SYSTEM
E
L
E
T MTM A/C
IN
MTM-
ATM KIOSKS MTM END USERS
- MTM Franchisees
-
02/09/2012 Money thro' Mobile for Financial Inclusion (mTm) Abraham Paul e-mail: papaul.hotmail.com 13
2.4. Money through Mobile (MTM) enable Post Office/Bank linked service: Money
through Mobile (MTM) provides provision for linking MTM user's individual MTM
account with Banks and Post offices, so that MTM users can 'pay in' and 'take out' money
from their Bank /Post office accounts using the MTM feature.
3. MTM enable saving of time, fuel and effort. -to-day money
transactions could be done sitting at home/office or from ' anywhere - any time' at user's
comfort without need to commute and therefore, help to save time, effort, expense on fuel
and usage of roads reducing traffic congestion and pollution.
3.1. MTM reduces to great extent need to print money. In addition to convenience of
'anytime' from 'any where' transaction and micro money payments with e -money
transactions, MTM drastically reduces the need to print money especially small
denomination rupee notes and coins and Government can save huge expense on this.
3.2. MTM enable discontinuation of all forms of subsidies. Most of the fund spent on
subsidized goods and services now are getting pilfered or squandered and go waste. With
MTM it is possible to do full value fund transfer without subsidy to the beneficiaries
direct without middlemen or agencies.
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4.
strata across the country. There is a need to urgently implement non-banking and non-
internet dependent solutions to realize 'financial inclusion' of people in the lower social
and economic strata across the country, both in the Urban and Rural areas that can be
realized with Money through Mobile (MTM) systems, networks, products and services.
4.1. Banking service has limitations: The banks, both nationalized and private are white
elephants always with an eye on profit rather than service. Whatever said and done,
banks will not be able to effectively serve people in the lower economic strata in urban as
well as rural areas. Even with 'Banking Correspondents', formal banking procedures are
not user-friendly for illiterate and poor customers especially for the women and aged.
4.2. Micro-finance support for the poor across the country: Services of most of the
Micro Finance Institutions are also unaffordable to people in the lower economic strata.
MTM system will make micro money payment facility available, accessible and
affordable to everyone; including people in the lower economic strata at an individual
level who is able and eligible to have phone in urban and rural areas.
Many user-friendly Micro Finance services can be provided to anyone who has a
phone. See the feature list. For example: A person can avail cash loan against a small
gold deposit as collateral with MTM Service Provider or with a MTM Micro-finance
support franchisee, into his MTM account; use it for himself or giving small loans to
others, and pay it back with nominal interest in convenient ways, take again and pay back
any number of times from anywhere any time, transparently, without much human
intervention.
5. MTM can enable effective usage of ADHAR, the Universal Unique ID.
Adhar as and when it become ready can be used for identification and information needed
for KYC of the MTM users which can be linked with MTM account number to enable
personalized secure transactions to realize 'Financial Inclusion' and 'Micro Finance
support services available, accessible and affordable to everyone; especially the people in
the lower economic strata, both in urban and rural across the country at minimum cost of
usage.
5.1. MTM can help to remove subsidies without middlemen and pilferage. As
mentioned above, MTM is a means to effectively disperse Governments welfare
payments to real beneficiaries across the country so that the they can get the money
received in their MTM account by the real beneficiaries without pilferage and third-party
intervention and can be transacted using their mobile phones sitting at their homes.
6. MTM system and Network.
MTM can work in the base GSM /CDMA network. MTM system can be a common,
centrally placed, stand-alone third-party system that can be accessed by all phone users of
different service providers over Mobile phone in the PLMN.
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MTM can work with base model phones both Mobile phones: Technology used for
MTM service suitable to work with base model low priced mobile phones that can be
ingeniously manufactured, programmed and supplied to users by MTM service provider.
6.1. MTM can work with Land line phones in PSTN.MTM service such as payments
of Utility bills, Service charges etc and transfer of money to any MTM user account can
be extended to Land Phones also as the numerals, * and # keys used in USSD messaging
are available in land line phones. IVRS incorporated with MTM system can take care of
the transactions between Land Phone and MTM system. As MTM use USSD signaling of
CCS signaling for its transactions between the phone and the system over phone network,
most of the features could be availed using land line phones in PSTN through land line
systems that are capable of handling CCS signaling.
This way MTM service can be quickly extended to areas where Mobile Telephony
service have not reached yet. There need to have only a PSTN telephone exchange that
can handle USSD over CCS7 signaling links with its the gateway systems.
6.2. MTM service could be availed by those who do not have a phone of their own:
Any one can become a registered MTM client at any MTM franchisee outlet or at local
Post office or banks. Such MTM account holder can also link their MTM account with
their Post office Savings bank account and normal Bank accounts or with MTM service
provider franchisee outlets directly or using any phone belonging to a relative or friend
or even from public phones using ADHAR for identification and personal and
additionally password for fraud protection.
Non-phone users such as mentioned above can avail MTM services using MTM-ATM
cards provided by MTM service provider.
6.3. Satellite connectivity. Government should implement IT enabled services using
contemporary technology. Instead of waiting for years to get the digital technology
extended to rural areas, MTM service can be provide in remote rural areas by connecting
the telecom systems in these places to centralized MTM system via satellite links. MTM
can be implemented in base model GSM and also in Fixed line telecom systems and fixed
phones where GSM is yet to reach.
6.4. Solar energy powered phone chargers. To make available the eco-system to power
Mobile pho
or cannot be afforded by villagers in rural areas, solar powered mobile phone chargers
etc., to be provided at subsidized cost. Facility for free charging mobile phones could be
provided at public places, post offices, Village / Panchayat offices, bus stations / Railway
stations, etc.
6.5. Method of MTM money transaction.
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Payment into any MTM account from any phone from any where.
Mobile A
GSM GSM GSM
+97150 7654321
MSC G/W G/W
PLMN
mTm-prc
Mobile B
+919446543210
GSM GSM
Distant PLMN MTM System G/W MSC
MTM
Prepaid
Coupon
vendors IVRS
mTm-acc
Distant PSTN
mTm-prc SC G/W G/W
Land line
+971 4 7654321
From Land Phone in UAE, to MTM
Crediting money into users MTM account can be done:-
- by buying and using MTM Pre-paid coupons available from MTM franchisee outlets as
currently being done in pre-paid phone service,
- through MTM franchisees by paying cash or by transferring money from Post office or
bank accounts to MTM account
- through any other MTM user by transferring fund from their account. For example
money can be transferred from MTM account of spouse or parent to children or between
friends.
- hard cash can be had from MTM franchisee outlets at small discount by transferring
- hard cash can be had from custom made MTM-ATM systems using MTM cards
provided by MTM service provider.
7. MTM Set Top Box. The killer application exclusive for MTM system that will make
of end
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institutions, Public services such as Post offices, Banks, Co-operatives, Vendors, Malls,
Cinema halls etc., as an interface between their Local Area Network (LAN) and MTM
through Mobile Net work in various Shops, Malls, Vendors, Utility and other Service
providers an institutions.
This special purpose Set Top Box (STB) shall have facility to equip SIMs of various
mobile service providers, if necessary to provide multiple accesses to mobile network to
take care of the call traffic and the MTM system through the signal transfer points (STP)
of Mobile gateways. The STB will interface a local computer with MTM application in it
to interact with MTM system via mobile network. MTM applications required in the user
devices can be download from the system.
Alternately, a USB plug in dongle device can be developed to provide network access to
MTM system by local computer or vending machines in small shops.
8. Features of MTM :
Initial subscription to become MTM user and recharging / refilling of users MTM
account through Post Offices, Banks and MTM franchisee outlets.
Recharging / refilling of the MTM account in the MTM system could be done by
buying and using MTM prepaid recharge coupons marketed by the MTM Service
Provider as being done now for prepaid mobile phone service.
Every MTM user can pay-in money into own MTM account and any other MTM
user account. Withdrawal and e-transfer of money can be done only from own
account.
MTM account holder can avail loan against small gold deposit with MTM Service
Provider, credit the amount in his MTM account, use it and pay it back with
nominal interest, any time from any where.
Capability of e-transfer of money using the MTM prepaid coupons, by any
Mobile phone or by Land line phone from anywhere to any MTM client account
is another powerful feature envisaged of the proposed MTM system.
MTM cash vending machines (MTM-ATM), identical to bank ATMs, provided
by MTM system provider at MTM franchisee points and other secure places shall
be used to deliver real cash to MTM users.
MTM-Cards. MTM users can use MTM-VISA Cards identical to credit cards;
issued by MTM service provider that can be used to receive or credit in real cash
from MTM-ATM or any of banks ATMs.
At locations where people need quick cash at malls, and other locations, licensed
Money changers can dispense real cash at a discount in lieu of e-transfer of
money to their MTM account.
Government agencies can send welfare payments like NREGA etc to MTM
As the transactions are recorded, it will be possible prevent avoidance of Tax
collections and the Govt. can access / collect statistics to cross check it.
MTM system and network use UUSD based real time transactions that is more
secure and faster than web based services.
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CLI and TPIN cross check, UUS authentication and encryption will enable
enough security.
IVRS incorporated with MTM system can take care of the transactions between
Land Phone and MTM system.
9. Technology involved. Technology involved in MTM is identical to IN based pre-paid
system and uses Mobile network and switching systems for access to MTM system and
service. However, the MTM system shall have connectivity with Mobile Switching
Gateways so that MTM system can reside outside the Telecom network and it shall be
transparent to any particular Telecom network or Service provider but accessible by users
of all Mobile Service providers.
9.1. USSD based technology. The message transactions between MTM mobile and
MTM server will be USSD based as in pre-paid system. Unlike web based mobile
banking services through INTERNET access, USSD is a highly secure CC7 signaling
with additional security with Calling Line Identification (CLI), personal password and
encryption making the MTM operation safe and secure. User-to-User signaling (UUS)
feature can be incorporated for additional authentication for secure money transactions.
Unlike the store and forward feature used in SMS, USSD is capable to support real time
transactions. It is fast, easy and convenient to use. Anyone familiar with making normal
phone calls can use MTM facility without any difficulty as the transactions between the
phone and MTM system is by keying in of few numerals in the key pad like *123# etc as
used in prepaid service.
USSD can work in basic 2G environment and does not need of GPRS and 3G. MTM
system can be directly implemented in the areas where already mobile networks are
available and can be spread to other areas along with provision of mobile access.
10. MTM-ATM Kiosks. Connectivity between MTM-ATM kiosks and MTM system can
be through Internet where available or through Mobile network using STB at MTM
Kiosk end. Withdrawal of cash can be done using MTM Card (identical to ATM VISA /
MASTER cards) provided by the MTM service provider or by accessing the MTM-ATM
by mobile phone over mobile network and interacting with it with the Mobile.
10.1. Connectivity between MTM system and its peripheral systems. IP connectivity
directly or via Web based service over INTERNET can be also options can be deployed
for inter working of MTM system with Banks, Post Offices, Pint of Sales and Point of
Services, major malls, utility service provider between
MTM system and MTM-ATMs.
10.2. Hard cash transaction through MTM franchisees. Hard cash can be obtained at
MTM franchisee outlets or from MTM cash vendors on nominal discount. By
transferring money into their MTM account.
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11. The business part: MTM deals being virtual e-transactions, and therefore, most of
the real money remains within the MTM system. This opens out enormous business
potential for various stake holders associated with MTM business.
There will be above billion phones in India soon. With a modest assumption of a
monthly average of Rs.10000/- transaction per phone, the annual turn around of the
business will be a mind bogging sum in hundred of Trillions. The huge excess liquidity
available with MTM Service provider can be profitably deployed in various instruments
of money management products within regulatory norms.
11.1. MTM service can be provided free of charge to users. With above business
logic, it is possible to provide MTM service free of cost to users which will make the
system popular with all types of phone users that will enhance MTM usage.
11.2. With the enhanced money business from this un-banked value added service, there
will be enough profit share for various stake holders, the Telecom service providers and
others, involved in MTM business.
12. Government need to act fast. There are many discussions going on about how to
identify the poor (as if they are a scare community), how to provide them financial
support without middlemen swindling it etc. etc in every sphere for many years now. The
high level advisers in Planning Commission etc., talk of big ideas that could be achieved
many years ahead. The basics of planning especially in a govt. set up that has a limited
mandate, is to quickly roll out useful schemes making use of the contemporary
technology and systems to the possible extent without delay along with the futuristic
ideas and plans.
12.1 MTM can work on basic GSM network: The greatest advantage of MTM that I
have been propagating for over ten years now is that it can be straight away implemented
in places were basic GSM network is available. Technology is identical to Pre-paid
system and prepaid service that is widely used in every network.
12.2. MTM fetaure can be extended to land line phones also. Where there is no Mobile
network, it can be implemented using modern land line systems linking these to MTM
system over PSTN gateway until Mobile networks are made available. Every land line
phone user can have an MTM account in MTM system and receive payments and transact
it to other accounts sitting at home.
12.3. MTM service can be provided for non phone users through MTM franchisees.
Those who have no phone can avail MTM service from can be availed using a family
member's or fr iends phone or from public call offices using the MTM cards supplied by
MTM service provider. Any one can register and open a MTM account with the MTM
service provider franchisee and will be provided with MTM-CARD identical to a Credit
card that can be used for transactions as being done in the same way as with credit cards.
This feature enable MTM as an universal service that can be availed by anyone any
where in the country by just having a MTM franchisee in every locality.
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12.4. MTM help to reduce subsidy burd MTM is the best way to get out of the
en.
economic peril caused by ever mounting and poorly managed subsidies. MTM as I have
been suggesting for years can pave way to do away with subsidies by giving out full
amount for procurement of food, Kerosene, Electricity, transportation etc., without
subsidy and welfare payments of right to employment, right education & healthcare etc.
direct to the beneficiaries.
12.5. MTM can reduce tax evasion: In addition, as every payment transaction using
MTM as a service are recorded and statistics can be readily made available to authorities
concerned, it is possible to avoid various tax evasion that is currently rampant in every
system.
12.6. The urgent need for Government to act without delay: From the foregoing it can
be seen that the whole emphasize is that, the Government and its planning wing instead
waiting years to make available digital connectivity to villages, it is possible to empower
them by providing MTM to them with readily available systems and methods. By this
way many hurdles of pilferage in various govt. welfare payments could be resolved.
12.7. MTM will not disrupt banking industry. As can be seen from the foregoing MTM
will in no way disruptive to banking industry. In fact it will only enhance it.
The huge amount of micro money transactions in retail business will not reach banks.
With MTM in place entire money transacted at various POS, utility service points etc will
ultimately will have to be transacted through banks for settling accounts between them
and MTM service providers.
13. Why Telecom industry should promote MTM business?
With 3G and NGN, Transition from Voice call business to direct and IP based
Data and Multimedia, substantial amount of business revenue will also move out
of Telecom Industry to external industries such as banks, content providers, and
other multimedia service providers. These industries use the use access through
Telecom systems and networks that are set up and run with heavy CAPEX and
OPEX.
Since entire customer base, technology involved, systems and network involved
in the business belong to various telecom service providers, the industry has all
the right to get adequate share of revenue from MTM business.
It is suicidal for Telecom service providers to remain as mere onlookers while
their, system and network and their customer base are used by other industries and
hijack their revenue potentials. It is necessary for telecom Industry to ensure
adequate share of this revenue from these external users, to survive.
There is limitation in Telephony related usage and revenue. MTM offer an
excellent non-Telephony related VAS that can enhance Telephone usage and
revenue.
14. Success of MTM service depends on the following aspects:
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a) MTM system shall provide service to all Service providers across the country.
b) MTM shall be a common centralized system that shall be available, accessible and
affordable to all types of users.
c) Since the system involves high volume of very low value money transactions, the
service shall be without any additional charge. Any cost involved on service shall be
compensated by profitably deploying the liquidity available to them in the operation
process.
d) It is necessary that MTM subscribers, utility providers, vendors, shops, banks, Post
offices etc involved in MTM service are able to deal with a common MTM service
provider, to make the service simple, user friendly and efficient, and to become profitable
and effective.
e) Therefore, to make the system and service succeed, the money management system
should be able to offer universal service anytime, anywhere, for every form of payment.
To realize this, the MTM system shall be ideally a common, centralized, stand-alone,
third party system that is set up by the consortium of Telecom service providers or by a
third party on revenue / profit share basis with the stake holders involved.
15. Un-banked Mobile Money Management need to be regulated to make it
successful. Setting up of disparate Money management systems, product and services by
various parties without any regulatory arrangement will not deliver desirable results
especially for financial inclusion and empowerment of people in the lower strata across
the country. Therefore, government should take immediate steps to bring un-banked
money management service under regulatory controls through National Payments
Corporation of India (NPCI) under the ambit of RBI.
A solution to resolve this impasse between Government and telecom Service
providers is to have an exclusive banking system associated with the MTM service
providers that is set up as a 3rd party system by the consortium of MTM Service
providers and controlled by NPCI under the ambit of RBI.
16. Scope of exclusive GSM network and MTM system by BSNL in tie up with
Postal Department.
It is even worthwhile for the government to set up the MTM system by BSNL tied up
with Postal department. It is also necessary for the government to have an exclusive
GSM network that can be used for Disaster / crisis management, security, terrorism
prevention, Adhar implementation and servicing, administration and dispersal of welfare
payments, pensions,, payments for disabled and old aged, money for Right to
employment (NREGA), Right to food, education and healthcare, using the network and
MTM system. It is also worthwhile for the government to provide low cost phones and
services for the poor to avail the service so that they can get the welfare payments in full
directly into their MTM account as a step towards removal of subsidies.
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Author: P. Abraham Paul e-mail: papaul1438@gmail.com Tweet @PA_Paul
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