Ride the New Mobile Solutions Wave Triggered by UID

Carol RealiniCarol Realini, CEO Obopay Inc , CEO Obopay Inc

Sanjay SwamySanjay Swamy, UIDAI , UIDAI

Arun TaArun Tanksali - VP-Mobile Solutions, Comviva nksali - VP-Mobile Solutions, Comviva Abhishek Sinha Abhishek Sinha – EKO – EKO India Financial Services India Financial Services

Ramesh Loganathan, Progress Software Ramesh Loganathan, Progress Software

Slides TBD

UID brief- by Sanjay Swamy

2May 3, 2023

Bringing Opportunity to LifeBringing Opportunity to Life

Twitter - carolrealiniTwitter - carolrealini

Gap NarrowingGap Narrowing Gap WideningGap Widening

0.7 B mobile phones0.7 B mobile phones

0.2 B savings bank accounts 0.2 B savings bank accounts

UnderservedUnderserved

1.2 B people1.2 B people

Why Mobile Money?• Economic growth• Empowers small business• Financial Inclusion• Why we should care?

• Security• Healthcare• Commerce• Scaling microfinance• Empowering women

Serving the underserved

Very low cost model via pooled account

National ID will drive down on boarding costs and speed adoption

Retail reach for customer on-boarding, support, cash in/out

Full range of financial products – payments, savings, credit, insurance

Local Language and voice support

Broad device and network coverage – including low end phones & SMS

UID is key

UID for registration will save over 50% of KYC costs in

handling documents/paper

UID can be used for BC Cash Out of up to Rs 5,000 per

instance making it a highly effective domestic

remittance vehicle

UID can be used for merchant payments, making it a

highly effective and fraud proof substitute for plastic

and when supported by a mobile phone providing

timely notifications of transactions

Mobile Solutions perspective

Arun TanksaliVP, Mobile Solutions, Comviva

• There are circumstances where end-users/Retail level authentication is required• This means that end

users, as opposed to organizations, may want to authenticate others in a transaction

• Examples could be:• Hiring a driver, domestic

help• Renting an apartment

• End users do not have access to the API or tools that are appropriate for simple usage

• Opportunity for retail authentication service providers

Retail Authentication

Mobile Authentication Service

SMS Client USSD

Text factors Text factorsText + image factors

• Consuming any kind of premium content or service via a mobile phone results in a payment via the Mobile Service Provider

• The current dynamics of this payment model results in a very small portion reaching the actual content/service provider

• If a mobile phone number is associated with a UID, which in turn is associated with a bank account then a simple model for micropayments can evolve directly connecting the provider and consumer

Mobile Apps & Service Micropayment

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+?

• The availability of a trusted authentication mechanism can simplify the challenge/response model of access in secured public places• Example: Airports

• The prevalent model is to produce a paper identification which will allow the access authority to match against the individual and ticket/boarding pass that is held

• This can be simplified considerably if the ticket/boarding pass contains the UID barcoded onto it• Or the barcode is

available on a mobile phone

• A passenger can simply scan the ticket/boarding pass and authenticate with a fingerprint scan

UID enabled boarding pass

BLR-DEL

Seat: 1c

Airline Ticketing System

The India angleAbhishek Sinha

Eko India Financial Services

Fundamentals

• Rapid & massive scale• No CAPEX• Extremely low cost of transaction• Leverage retail distribution infra - 15 million• Leverage cell phone users ~ 700 million

• Exclusive to None - True Democratization

13May 3, 2023

All MNOsAirtel / BSNL / Idea / Reliance / Tata etc.

All PlatformsSymbian / Java / Android etc.

All OEMsNokia / LG / BlackBerry / iPhone etc.

All

Technologies3G / GPRS / CDMA / GSM / EDGE etc.

Multi BankState Bank of India / ICICI Bank etc.

All FSPsBharti AXA / SKS / L&T Finance etc.

Digitization of a financial transaction

BENEFICIARY

AMOUN

T

AUTHORIZATION

Missed Call | Only Numbers | Works on Ultra-low cost handsets | FREE

*543*9811234389*99

9*1598271234#

Use cases

Currently live @ EKO/-• Money transfers into SBI

accounts• Pension payments for

ESIC employees• Incentive disbursal for

ASHA workers• Bharti Axa Bachat Bima

insurance premium payments

Possible use cases• MFI Loan disbursal• Prepaid recharge• Farmer purchase of

weather / commodity price updates

• Payment for remote diagnostics / healthcare

• Low income payroll disbursal

15May 3, 2023

Challenges?

Thank You

Challenges• Provider neutral

communications access• Standards development /

frameworks• Regulatory clarity• Creating service awareness• Creating customer literacy• Funding scalable infrastructure

Solutions• Public private partnerships• Non-prescriptive frameworks

• Support innovation• Lower entry barriers

• Building sustainable models:• Allow service delivery for those who

can pay• Devolve deployment of government

grants – like the FIF, FITF• USO like funds to subsidize social

agenda

18May 3, 2023