Defining & Enabling Digital Ecology via Mobile Money · Defining & Enabling Digital Ecology via...
Transcript of Defining & Enabling Digital Ecology via Mobile Money · Defining & Enabling Digital Ecology via...
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Vodafone M-Pesa Journey
Industry Pathway To Draw A New Pattern
Realizing Vision to Build Open Payment Ecosystem
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Vodafone M-PESA Global Business Update
25m
Global
• 25m active customers
• 6% of global deployments but 20%
of active users(source: GSMA ).
• In Tanzania financial exclusion
was lowered by 50% thanks to
mobile money
• DRC, over 10,000 active M-Pesa
outlets, only approximately 800
bank branches
• Kenya M-Pesa Revenue growth
+24% to 19.35 billion Kshs
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• SFC M-PESA Business Keeps Strong Growth, +27% CAGR from FY 12-FY 2016• Non P2P growth even more fast, +78% CAGR from FY 12-FY 2016• Non P2P became major revenue contribution for M-PESA, took 18% of total in FY16
Its No Longer Just P2P
• Non P2P examples:– Bill payments– TV, Electricity– Solar Power– Pre-pay for water at
community pumps– School Fees
3.24 4.22 5.36 6.69 7.923.334.26
4.925.91
6.83
2.943.79
4.63
5.77
6.83
0.47
0.87
1.59
2.57
4.68
H1-FY-12 H1-FY-13 H1-FY-14 H1-FY-15 H1-FY-16
Depoist P2P tranfers Withdrawals B2C&C2B
Bn$Source: SFCAnnual report
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1.Capture SubscribersHow to capture the subscribers financial
business?
We Still Face Business Challenge
2.Killer ServicesWhat is the 'killer service' which
will capture the market.
3. Business StrategyWhat is the business strategy to
adopt with Mobile Money?
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What Does M-PESA Look Like?
Merchants
Subscribers
BankPartners
M-PESA connects all communities to do business
Business
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Different Paths to Success..
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Cash in/outP2P Transfer
2 3 4 5
Bill paymentB2C,C2B
MicroSaving/loan National remittance
HUB/IMT HUBMerchant PaymentsMobile coupon/ticket
Unbanked:e.g.Kenya
Banked:e.g.Europe
1
Cash in/outP2P Transfer
Bulk Distribution
2 3 4 5
Bill paymentInternationalRemittance
MicroSaving/loanInsurance
Interoperation
Unbanked:e.g.Kenya
MerchantPaymentsVouchers
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Vodafone M-Pesa Journey
Industry Pathway To Draw A New Pattern
Realizing Vision to Build Open Payment Ecosystem
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Safaricom’s M-PESA Success, can it be replicated?
Country Pre-Market Condition
• Strong domestic remittances• Limited alternatives• Supportive banking regulator• Dominant market position• Good commission for reseller
AccurateService Design
• “Send money home”• Remove all barriers• Fostered trust• Consistent customer
experience• Transparent Pricing
Execution: Getting toCritical Mass Quickly
• National launch and marketingmix
• Scalable Distribution withintermediaries
• Tight control on customerexperience
• Balance stocks of cash and e-value in store
Key Success Factor of Safaricom M-PESA
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Emerging vs Developed Markets
Business Model
M-Payment Services
Regulatory Environment
Mobile operator-led but focus onpartnership
Domestic remittance, savings, billpayment
Basic use of agents
Bank-centric, operator-bank partnerships
International remittance, accountinformation, NFC trials
Emerging rules on non-banks acting asbanks
Multi-lateral partnerships, disruptive newentrants
Person-to-person payments, national NFCplatforms
Complex, e-money regulation,interoperability
Dem
and
for l
ow-c
ost,
low
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infre
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High
Low
Dem
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volu
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trans
actio
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High
LowDeveloped economiesDeveloping economies
Sri Lanka
Kenya
Nigeria
BrazilPhilippines
India
United States
South Korea
China
Japan
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Different Players Via Different Approaches
1User Centric Merchant
Centric2 3
Fund Centric
Online merchants:1.3 MillionsOffline merchats:0.3 Millions
Tianhong BondExisting massive TaobaousersLinked to Alipay to connectmillions of merchantsExisting massive wechatusersLinked to wechat wallet bylucky money
Developing massive online &offline merchants
LiCaiTong Bond
1 P2P,Cashin/out M-Shwari
2 3B2C,C2B
Existing massive mobileusersattracted to be M-PESAusers
B2C,C2B, bill payment, utilitypayment, bulk disbursementetc
M-Shwari to leveragedeposit capital of M-PESA
Backend model:Profit frommerchants
Frontend model:Profit from subs
BankedU
n-Banked
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270M activesubs200M activesubs
1.8Trillion$
330Billion$
Mobile Payment Flourish Everywhere In China
In china, people now rarely take the purse, and cash out via ATM machine. Almosteveryone take a smart phone to replaces his wallet, and meet his all thedaily needs of for payment, from taxis, utility fees to buy stuff atthe grocery store.
500 Millions users made payment via mobile phone at least oncein 2015, mobile payment transaction value surpass 2.5Trillion$ ,inwhich:
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① Bank Partners② Online Merchant
③ Offline Merchants
The Eco-Centric Business Shall Be The Next Move
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Interconnected Services Signal New OpportunitiesMobile Marketing
Mobile Banking and Payments
Mobile Shopping
Core Competency: Customer Relationship
Core Competency: Customer Experience
Core Competency: Financial & Payment Service
• Data analytics• Service and product advertising and
marketing (location based)• Loyalty and other promotions
• Product and service search and discovery• Social location shopping• Price comparison shopping• Support, customer care• Orders and delivery
• Point-of-sale payments e.g. NFC/barcode• Mobile wallets• Device-based credit card processing
solution• Direct carrier billing• Salary payments• Microfinance• Insurance services• Investment services• International remittance• Domestic remittance• Mobile web payments• Utility bill payments
Led by financial, mobile operators and technology Led by Technology, marketing and retailers
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Vodafone M-Pesa Journey
Industry Pathway To Draw A New Pattern
Realizing Vision to Build Open Payment Ecosystem
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Huawei for Eco-Centric Based Platform Is Ready
SystemSecurity
SystemRobustness
ServiceExperience
SystemOpenness
System Agility
•Mobile APP•QR code/NFC•Self care
•PlatformVirtualization•Platform Elasticity•2000 TPS/node
•HSM encryption•Anti virus n•AML
•Generic API•Merchant toolkit•NFC integration
•80% requirement forlocal configuration•TTM to days
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Eco-centric Services Layouts @ Huawei Platform
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Financial services:Savings, Loan, Donation, Stock, Insurance…
Life Assistance services:Buy airtime, gas,water,electricity, TV bill payment…
Personal & Group services:P2P transfer, Credit card repay, AA payment, red envelop…
Online payment services:ebay,Amazon,Taobao online merchant payment…
Offline payment services:Cinema, Taxi, Restaurant, hotel, coupon, Loyalty,promotion…
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Global Partners Resources Ready For Ecosystem
Consumer
Banks Partner Merchants PartnerCarriers
IndustryEnterpriseBanks
Huawei Mobile Money
Merchants
Huawei Travel
Platform Partner