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MasterCard’s Open-loop network connects all stakeholders to a global Web of opportunity.

Egypt Digital Ecosystem

for Financial Inclusion

Empower citizens to contribute to the formal economy via electronic and mobile payment channels

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The Process of Inclusive Growth

Ensures all segments of society are able to reap the benefits of economic growth

Financial inclusion is an important driver of inclusive growth but it is not enough

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UKRAINEDid you know….MasterCard Egypt Mobile Payment Ecosystem is the World 1st country-wide open loop solution that extends the usage of themobile to become the personal payment tool in a simple, secure , convenient way for both banked and unbanked population.

BankedConsumers

UnbankedConsumers

Mobile-CentricInformal Financial

Services

Bank-CentricFormal Financial

Services

Electronic payments replace

cash paymentsas medium

of exchange

Mobile Network OperatorsIssuers

MasterCard’s Core Operating Competencies Connect Payment Parties Together to create a cooperative and profitable value system for all participants

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• Large population• Significant unbanked population• High mobile penetration

• Strong support from the Egyptian Government and Financial Institutions facilitating the creation of the digital ecosystems

Egypt checks all the boxes for Mobile Payments

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Partnership between all players (Public and Private) to Empower citizens to contribute to the formal economy via

electronic and mobile payment channels

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Money InHow consumers

receive money to fund their unique

lifestyle needs

Money OutHow consumers spend money for

their unique lifestyle needs

Money ManagementA safe value store for the consumer’s funds

and the ability for the consumer to be informed and in control of their money

DisbursementsPayroll/Benefits

Receive Money Family

& Friends

Sunsidies

Load Money

Mobile POIPurchase

POS Purchase

Remote (P2M) Purchase

Local Purchase

Cash Out at Agent

Cash Out at Bank/MNO

Cash Out at ATM

Load Money

at agent

Load Money

from card

Load Money at ATM Balance

QueryActivity Query

Account Management

Activity Alerts

POS/ATMAlerts

Top-Up Bill Pay

Pay Family & Friends

Transfer Money from

Account

Pay Merchant

Buy Online

Cash Out

Consumers

Enabling Banked and Unbanked Consumers to Manage Money According to Their Lifestyle

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Banks

MNOs

Wallet Providers

Use Cases (Enabled by MasterCard)

• Robust turn-key outsourced solution drives complete set of financial services for both banked and unbanked.

• Leverage MasterCard well established rules, policy, and Settlement Services, and business model.

• Customized for Egypt in line with the CBE requirements• Fully interoperable

Open Loop Access

Empower Banks to acquire merchants, billers, aggregators, Gov services to maximize transaction and generate new revenue streams

Consumer

Agent (Cash in/out)

Cardless ATM(Cash in/out)

Branch(Cash in/out)

Top up

Bill Payment

E-Commerce (Online Card)

Pay to Merchant

Send Money

International Remittance

Load from card (AVL)

Aggregators MerchantsDirect BillersCash in/out

AgentsGovernment

PaymentsPost

6

Government

FMCGCollection

Salary DisbursementTo National ID

Universities Sport Clubs

Insurance

Gameya Transportation

Microfinance Integrate other apps

Egypt’s ecosystem Use Casesbenefiting banked, unbanked , Corp/SMEs and Gov.

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2013 2014 2015 2016 2017e

Transactions

7MAY 7, 2017

Customers adoption to mobile financial services is growing exponentially

Majority of consumers try the service once remain active for the

subsequent months!

More than 5 Million Wallets

5 transactions / month per active consumer

11 participants (9 banks and 2 Telcos)

12% of the total electronic transactions in 2017

2013 2014 2015 2016 2017e

# of Wallets

x42x30

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• Bulk Disbursements• Corporate Salaries and Payroll• Microfinance and Micro loans• Cross Boarder Remittance• SME Business Solutions

• Consumer Education is key to accelerate service adoption

• Focus on a single use case

• How to use it “the basics”

8MAY 7, 2017

Did we hit the tipping point? … close but not yet.

There is potential to multiple active customer base and exploit the massive digital opportunities in the Egyptian market.

• Expand low-cost acceptance via mobile device and QR code enablement

• Unbanked consumer realize more ways & places to pay.

• Leverage common market infrastructure and Ecosystem

• Government Inflows and Payments:

• Disbursements: Pensions, Social benefits, Payroll, incentives…etc

• Digitizing Ministries payments • Transit automation (Metro and Railway)

Mobile Acceptance

Encourage Inflows

Consumer Awarness

Government

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9MAY 7, 2017

Acceptance – where to use my wallet

In-store merchants1

Digital Merchants2

Consumer Scan QR Code

Enter Pin Notification to mobile app or mpos

QR

Co

de

PO

S

Merchant ID Enter Pin****

Receipt printed from POS machine

Mobile Acceptance

Encourage Inflows

Government

Consumer

Education

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10

Acceptance – where to use my wallet

In-store merchants1

Digital Merchants2

Request to Pay Billers Recurring payments

Merchant/ corporate

Value to be paid

Confirm by PIN

Payment initiated by merchant

Payment initiated by Customers

Merchant/ corporate

Select merchant

Enter value

Confirm by PIN

Payment scheduled to deducted from wallet

Merchant/ corporate

Confirm by PIN

Key success factor is engagement with Merchants and corporates

Mobile Acceptance

Encourage Inflows

Government

Consumer

Education

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11MAY 7, 2017

Encouraging Inflows and main pillars for growth

• Corporate Salaries and Payroll

• Microfinance and Micro loans

• Cross Boarder Remittance

• SME Business Solutions

Disbursements

• Global remittance market of USD 600 billion, Egypt receives around USD 15-20 billion, ranked number 6 globally

• 85-90% of Egypt remittance received in cash

• Instant transfer to mobile wallet

• Safe and secure transfer

• Collect instantly from any ATM (Card-less)

International Remittance

(21 Bn $)

Wallets are not just a simplified solution for customers, it is an important tool to grow the amount of inflows to the banking system

Mobile Acceptan

ce

Encourage Inflows

Government

Consumer

Education

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Direct Cash is the major mean to transfer over Electronics

Traditional (Direct cash deposit at

agents/branches

10%-15%

85%-90%

Bank wire transfer

Direct Bank Arrangements

Airtime Top Up <1%

10%-15%

Bank Transfer / Wire20%-30%

~5%

30-50%

Funds Out Summary Receiver Estimated Competitive Market Shares

Source: MasterCard Advisors analysis based on SME interviews

Mobile Acceptan

ce

Encourage Inflows

Government

Consumer

Education

Global Breakthrough…

now in Egypt

• Leverage HomeSend network that connects more than 100 large senders globally.

• Instant, Cost efficient, speed to market

• Collect instantly from any ATM (Card-less)

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13MAY 7, 2017

Government – the Inflows to the wallets

Ministry of Social Solidarity1

• MasterCard in cooperation with Ministry of Social Solidarity and Vodafone initiated a Government disbursement model for social benefits to the mobile wallets

• The Pilot focused on one program for the Women alimony, where they receive their benefits on the phones where they can cash it out from the nearest agents saving them cost and effort of traveling to the ministry outlets.

• After the success of the pilot the Ministry is planning to roll-out the service to 25K beneficiary as first phase and to 300Knext year (and this is just one program)

Ministry of Education2

Mobile Acceptan

ce

Encourage Inflows

Government

Consumer

Education

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14MAY 7, 2017

Government – the Outflows and Convenience

• 50,000 schools, 18 Million Students and the Ministry collects 10% of the fees• Engaged with Ministry of Education to facilitate public school payments through Mobile (Pilot below)

Ministry of Social Solidarity1

Ministry of Education2

مدفوعات.6

مدفوعات

مدارسدفع مصاريف -1

مشترياتدفع -2

دفع فواتير-3

مدارسمصاريف -مدفوعات

إدخل رقم الطالب

مدارسمصاريف -مدفوعات

56مصاريف الطالب خالد محمد

جنيهاً مصرياً

للدفع إدخل رقمك السري

مدارسمصاريف -مدفوعات

.تم الدفع بنجاح

إستعالم رصيد .7

Mobile Acceptan

ce

Encourage Inflows

Government

Consumer

Education

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15MAY 7, 2017

Consumer Education is key to accelerate service adoption

Two key learningsFocus on a single use case

Person to Person Money Transfer

How to use it

“the basics”

How to download the APP

Set the M-PIN

Why it is safe

Try one transaction

Mobile Acceptan

ce

Encourage Inflows

Government

Consumer Education