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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
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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
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