1© 2009 Luup

Mobile Payments: The Battle for the

Future

Presented by Thomas Bostrøm Jørgensen

From mobile payments solutions provider Luup

26 November 2009

Financial Services Club, London

Mobile Payment Solutions

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• Which contrasting mobile payments business models compete for supremacy?

• Can bank-led models succeed in equal measure in developing and developed countries?

• Which differentiating drivers, challenges and opportunities define mobile payments

markets?

• Why is this business worth fighting for?

• What does a blueprint for future bank-led mobile payments roll-outs look like?

Speech focus

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• Mobile payments solutions developer and operator since 2002

• First company to hold a full European e-money license

• Worldwide growth business with high profile backers

• Partnerships with FIs at the heart

• Full service set for retail banks, corporate banks and money transfer organisations

Luup’s credentials

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P2P Money transfer demonstration

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• Bank-led models mainly in developed countries offer banking service extensions

• MNOs-led models mainly in developing countries with airtime and stored value accounts

for new market segments

• Partnership models are emerging

• Current demarcations show MNOs are capturing opportunities and revenue ahead of

banks

Battleground and protagonists

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CGAP statistics:

• Mobile payments market worth as much as £365 billion by 2013

• 110 million users in Europe alone by 2014

• 364 million unbanked customers to be reached by agent-networked mobile banking

Luup & Evaluserve new statistics:

• 15 million migrant workers in Kuwait, Saudi Arabia and the UAE - 80% without bank

account!

• Migrants remit 50% of salary home, totaling €2.373 billion a month

A business worth fighting for

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MNO-led models leverage agent networks

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• MNOs weaknesses: from restricted user access to lacking banking knowledge

• Regulators’ concern: from security and impact on financial systems to agent network

management

• M-Pesa led to introduction of Bill to tackle ‘disaster waiting to happen’

• Banks can ride to the rescue, yet time is of essence

Regulators stirring over MNOs-led models

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• Cost-efficient extension of banking services

• Moving beyond mobile banking to lucrative

mobile payments

• Opportunities for Banks push ahead without

MNOs

• From global transactions to corporate mobile

payments and authorisation

• Beware MNOs muscling in and the impact of

the PSD

Bank-led models

“Our partnership with Luup will

enable Deutsche Bank to shape the

future direction of the mobile

payments space.”

Harold Young, Global Head of Payment

Products, Deutsche Bank GTB

Banks taking the lead

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• Entire industry seeks to declare a truce and work together

• Banks tie up with solutions vendors to enter negotiations with stronger assets

• Country specific approaches and focus on partners’ core competencies

• Wide range of contentious issues still to be resolved

• Commitment to ‘first time right’ is needed

The partnership models

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• Different countries, different

approaches

• 2 phones per person and unbanked

population in UAE opened

opportunities for NBAD

• Arrow launched; includes first

person-to-person money transfer

service of its kind

• Challenging, bespoke innovations

dominated the implementation

Blueprint for bank-led models

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My questions & Your questions

Thank you

Thomas Bostrøm Jørgensen

From mobile payments solutions provider Luup

26 November 2009

Financial Services Club, London

Mobile Payment Solutions