EServGlobal Solutions Presentation Solutions Presentation

eServGlobal Solutions Presentation

Solutions Presentation

2eServGlobal Proprietary and Confidential

Mobile Network Operators’ Mobile Money ObjectivesMobile Network Operators want to offer mobile users “mobile financial services” via handsets to increase ARPU from user service charges (SMS, internet access, etc), transaction charges (clip the ticket) and interest on deposits (funds held).

To do this they know that they need to simplify, extend, and reduce the cost of their “cash in” channels. So it is firstly about increasing (as cheaply as possible) the held balance (via prepaid funds) on the mobile users’ phone accounts.

“History has shown that users with credit balances use it”

Secondly the operators want to simplify and extend the number of ways users can reduce the “held balance” on their mobiles

• In the banked world the funds are generally deposited via the banking system.

• In the unbanked world the funds are deposited via cash

• In the banked world via m-commerce, mobile payments, international remittance (send), near field communications ….

• In the unbanked world via m-wallets, domestic airtime transfer, international remittance (receive), funds disbursement (salaries, microfinance, aid) ……


Greenwich Consulting’s Mobile Money view

eServGlobal Proprietary and Confidential 4

Telecom Software Landscape

Low Value Commodities

Mar

ket

Gro

wth

Value of Solution

StarsMobile Money

Promotions/Loyalty

Voucher Management

Unknown Territory

e-Recharge

Sources: Gartner, 2009, ,2010; Juniper, 2009, 2010; McKinsey, 2010

M-Advertising

Billing Services

Network Control

Infrastructure

Number Portability


24 years’ experience

in Mobile Payments, Value-Added Services, and

subscriber Promotions

60+ telecom customers

worldwide

eServGlobal Strategy

Focused on Mobile Money for the Unbanked while providing Mobile Money, Recharge and Promotion solutions to Mobile Network Operators (MNO’s)


eServGlobal Products & Services

Any account to any account Mobile Money, recharge, & remittance

Value-added services that enable

MNO’s to engage their subscribers in a

personalised way 24 Years of enabling telcos to…

Grow revenue, Gain & retain customers, Enter new marketsGrow revenue, Gain & retain customers, Enter new markets

Mobile Money


Mobile Money Landscape

Unknown Territory

Low Value Commodities

Mar

ket

Gro

wth

Value of Solution

Stars

Mobile Banking

m-Int’l Remittance

Domestic Money Transfer

Bank Int’l Remittance

Money Transfer Operators

Sources: Greenwich Consulting, June 2010; Informa, 2009

Local Payments

eServGlobal

Remote Payments

e-Recharge

m-Wallets

Premium SMS


Mobile Money

By 2012, Mobile Money is projected to generate USD $5B in direct revenue and USD $3B in indirect revenue per year McKinsey, February 2010

Mobile money creates loyalty & drives new revenue streams for operators and banks

TotalPopulation

Banking penetration in developing markets1

BankedUnbanked

100%Untapped, high growth market

USD $860B market in m-payments and m-

banking worldwide2

1. Est. 72% of the adult population in developing countries, and 19% in developed markets are banked. Financial Access, 2009 CGAP.2. Informa forecasts mobile payments and mobile banking transactions to represent USD $860 B in 2013. Informa, 2009.


M

600 M

1,200 M

FY09 FY10 FY11 FY12 FY13 FY14 FY15

Pay

Mob

ile E

nd-U

sers

Pursuing emerging, high-growth e-recharge and Mobile Money markets

Targeting our 23 existing recharge customers to upgrade to m-wallets

Our Mobile Money Strategy

Payments (Recharge + Vouchers)

M-Wallets

Estimated PayMobile End UsersBased on existing PayMobile customers, pipeline, and operator growth metrics1

Electronic recharge is replacing vouchers

M-wallets are accretive.

Increasing footprint with enhanced Nokia Siemens Networks (NSN) partnership

New Reseller agreement for m-wallets with Belgacom International Carrier Service (BICS)

Now targeting Banks, Money Transfer Organizations (MTO’s), and other financial institutions

1. Informa Operator Database (WCIS), 2010; PayMobile pipleline. Subject to regulatory constraints and materialization of pipeline.


Impact on MNO’s due to Mobile Money

0%

1%

2%

3%

4%

~6x lower

Mon

thly

ch

urn

(%

)

1. Safaricom M-Pesa Experience, July 2010. September, 2009 ARPU figures from Informa Telecoms & Media (WCIS). 2. Based on Philippines Case Study, CGAP 2009. Additional proof point comes from MTN Experience, South African and Uganda. Mobile Money for the Unbanked Working Group: Churn reduced

from 75% annually to 25% (approx 6.25% monthly vs. 2% monthly) in South Africa. 3. eServGlobal experience, 2008. Cost base is estimated.

Reduction in distribution costs due to electronic recharge3

-4%

Tota

l op

era

tor

cost

b

ase

Aligning high churn (mobile) and low churn (banking) businesses

reduces churn2

4% cost reduction in entire cost basis of MNO.

Additional revenue stimulation estimated at ~8-10%

Before AfterNormal subs M-money users

Reduction in customer turnover due to mobile money2

We enable operators to drive new revenue streams, retain their customers, and decrease their distribution costs

4

5

6

7 10% increase

Mon

thly

AR

PU

Mobile money accounted for a 10% increase in Average Revenue Per

User at Safaricom1

Before After

Increase in revenues due to mobile money


eServGlobal Mobile Money Experience

12 years’ experience in Mobile Money Services

From voucher recharge through to international remittance

A step by step approach to continuously propose customers innovative services

Our solutions are built in partnership with our customers

PayMobile solutions currently deployed at 23 customer sites

A creative and flexible engineering team experienced in the latest technologies who are able to anticipate customers’ specific needs

Solutions that enable MNO’s to grow

We are supporting 500,000 transactions per busy hour for 235,000 retailers and 33,000,000 subscribers at a large Mobile Operator in Pakistan


End-to-end, any-account-to-any-account mobile money: bill payments, airtime, P2P transfers, salaries…

Ready to integrate with Banks, Credit cards, Retailers, m-wallets…

Open API’s for maximum interconnectivity

International remittance with HomeSend

Mobile Money – PayMobile (m-wallet)


The Mobile Money Network The Hub acts as an open and neutral intermediary between the various participants in the ecosystem

International Remittance - Mobile to MobileHomeSend


Mobile Money Services in Emerging Markets

3 billion people currently lack access to financial services

There are 6 times more handsets than bank accounts in the world

Across developing countries 1 B people have a mobile phone but no bank account. This figure is estimated to grow to 1.7 B by 2012

For formal international remittances of US$500 B, $65 B is expected to be mobile by 2013

Over 12 million microfinance loans are distributed annually worldwide (US$16 B)

That there are around 200 million migrant workers worldwide, each sending home between US$2,000 and US$5,000 per year. This gives an estimated market of $400-1000 B. Migrant workers are expected to do weekly transfers, which gives an average amount of $40-100 per transaction

World Bank & CGAP, 2009

World Bank, GSMA, 2009

World Bank, GSMA, 2009

Juniper Research, 2009

Informa 2010

World Bank, IFC

In the unbanked world mobile users want their mobile phone to provide “currency” storage with the ability to receive, spend and transfer


International Money Transfer

<1% 45% 55%

2008: US $433B in formal international remittances

2014: Estimated US $500B in formal international remittances

Mobile Top-Tier MTO’s1

1. MTO is a Money Transfer Organization. Top-tier MTOs include Western Union, MoneyGram, Eurogiro, and VigoSources: GSMA (MMT Working paper), 2008; World Bank, 2010; Juniper Mobile Money Transfer, 2009.

Banks & other

13% 30-40% 40-50%

Mobile Top-Tier MTO’s1

Banks & Other

+$250Bn

Informal Sector

Mobile Remittance Revenues ($USD)

$ . B

$ .5 B

$ 1. B

$ 1.5 B

$ 2. B

$ 2.5 B

2009 2010 2011 2012 2013 2014

Source: Juniper Research, 2009


International Money Transfer Market

Any device, any channel

UnbankedBanked

Traditional

Informal channels

Traditionalbanks


HomeSend / Traditional MTO Comparison

Leverage MNO’s Networks Bricks and Mortar

Cost Base

Access to Customers

All subscribersAny channelAny device

Customers with physical access to an agent or a bank

account

HomeSend represents the future of international remittances:It uses the pre-existing telco network to address billions of subscribers

Traditional Money Transfer Org

Traditional Money Transfer Org


What the Industry Experts Are Saying about HomeSend

Mobile-centric from sender to receiver – banks welcome, but not required

Mobile-Centric: HomeSend “provides a mobile-centric approach to international remittance. This represents a significant new step in mobile payment, allowing any mobile service provider in any country to access the international remittance market.”

Market lead: HomeSend “provides an alternative to banks' or money transfer agencies' remittance corridors. So far it is the first operator-oriented remittance hub in the market with live operation”

Proven hubbing and financial experience: “BICS provides the connectivity to carriers, as well as the clearing and settlement know-how”


Belgacom International Carrier Service

Offices in Brussels, Bern, Dubai, Monaco, NY, Singapore

Belgacom (57.6%), Swisscom (22.4%) and MTN (20%) as shareholders

Signalling 3GRX

Instant Roaming

IPX

Video Tel.

Business Class

VAS

Simbox Detection

RoamGuard

First Class Mobile VoIP

SMS Transit

MMS Transit

4th largest international carrier Transporting 25 billion minutes/yr Generated € 1.26 billion in

revenues in 2009

A network of networks, globally connecting 250+ telecoms operators to make international telecommunications in all its forms possible.


How HomeSend Works in PracticeCash In: Sender deposits their currency of residence via Telco agent (SMS, Internet, vouchers, etc) into their m-wallet which is credited

Cash Out: Receiver withdraws cash (in their currency) from their m-wallet (which is debited) at an agent outlet.

Sender

International Remittance: Sender remits money to receiver using their mobile phone. Money is transferred into the receiver currency. Sender’s m-wallet is debited and receiver’s m-wallet is credited.

Sender’s Telco m-wallet

Sender

Telco Agent

Telco increases balance in the

sender’s m-wallet

Receiver’s telco reduces their m-wallet balance

Receiver’s Agent

Country Sender

Country Receiver

Receiver’s Telco m-wallet Receiver

Receiver

Internet

SMS


How do the Transactions and Clearing Work?

Sending RSP

Sending currency

Receiving RSP

Receiving currency

Sender Receiver

Money transfer between the sender and receiver is both instant and available 24X7. The settlement process by the Remittance Service Providers (RSP) is carried out via existing banking networks

Settlement Instructions

(daily)

Settlement Account of Sending RSP

Settlement Account of Receiving RSPBank

Settlement Account Prefunding

Settlement Account Repatriation

Daily Debiting Daily Crediting

Tra

ns

ac

tio

n P

roc

es

sin

g(r

ea

l-ti

me

)F

ina

nc

ial

Se

ttle

me

nt

(ba

tch

)

FX conversionLocal account Local account


Hosted m-Wallet

SenderMobile Network Operator Sender

Receiverm-Wallet

The hosted m-wallet is targeted at operators that either do not have or have not yet deployed a Mobile Wallet

The benefits to the MNO’s are that there is no CAPEX or OPEX required, reduced time to market and reduced risk

The benefits to eServGlobal and BICS are an extension of the PayMobile pipeline and an increase in MNO’s ready to deploy HomeSend

Mobile Network Operator Receiver


HomeSend Steps to SuccessWe are on the path to generating strong returns from HomeSend

Build the Platform

Sign up MNOReceivers

Sign up MNOSenders

Sign up MTO’s, Banks and PSP’s

Get Transaction Volumes Up

GSMA Endorsement

Regulatory Compliance

1st Mover Advantage

38M subscribers to-date

14M subscribers able to send funds

BICS & Hub Members: marketing efforts

Strong pipeline

Strong pipeline

Just Starting


HomeSend and PayMobile

Promotions, Loyalty and Retention


The Value of Loyalty & Retention

0%

1%

2%

3%

4%-20.3%

Mon

thly

ch

urn

(%

)

1. eServGlobal experience, Peppers & Rogers benchmarks2. Average subs, ARPU, churn based on Q3 2009 estimates from Informa Telecoms Operator Database (WCIS)

$5

$7

$9

Impact of loyalty program on operator voice revenues1

+32%

Pre

-paid

Mon

thly

AR

PU

Adds $25M/yr in pre-paid revenue for the average

European telco2

Added 32% in voice revenue increase in

sample emerging market1

Before AfterBefore After

Impact of loyalty & promotion program on pre-paid churn1

We help operators attract, retain, and stimulatesubscribers with advanced loyalty & retention solutions


PromoMax

Flash & trackerpromotions

UserInteraction

Services

UserSegmentation

CostControl

Lottery, Draw Administration& Supervision

Access Interface

PromoMax

Flash & trackerpromotions

UserInteraction

Services

UserSegmentation

CostControl

Lottery, Draw Administration& Supervision

Access Interface

Loyalty and Retention

MNOs’ marketing departments are driven by loyalty and retention

We are taking a marketing and services-oriented approach by moving loyalty and retention out of the domain of the IT department and back to the user – Marketing

Our promotions focus on true one-on-one interactions based on subscribers’ actions

Geo-localisation applications are becoming popular with consumers

Use 5 more minutes and get

3 free!

Use 5 more minutes and get

3 free! Here’s a Domino’s Pizza coupon to go

with your movie download!

Here’s a Domino’s Pizza coupon to go

with your movie download!


Loyalty & Retention - PromoMax

Orange: SaaS-based loyalty program: Provided customers with a tiered loyalty program– more calls, more rewardsVoice revenue 32%Active customer base 50%

Niger

Tunisiana uses PromoMax to:

Run 10 simultaneous personalised B2B, B2C, and event-based promotions today

Interacting with 10% of the customer base/day

PayMobile-integrated recharge promotions

The PromoMax workbench returns the power to the marketing department to create their own promotions

One of our prospects spends US $600,000 in consulting fees to launch each new promotion!


Market-Leading Technology

Immediate promotion creation using the PromoMax workbench

Envision, design, and launch promotions in under a day

Empowers marketing department

Any action, any reward, anywhere …and in real time

Based on usage, recharges, spending, browsing…

Enabled by PromoMax’s real time control

Advanced customer intelligence

Customer intelligence ensures effective, personalised rewards

Adapt to customer response to historic promotions

Real time promotions

Immediate campaign response


PromoMax

You can

Register your customer

then simulate Recharges

Customer may receive a

reward depending on the

pre-configured promotions

on PromoMax Live

They say

“I received my award

straight away”

“Lottery, I love it”

“This is really flexible”

Value Added Services


Value-Added Services

Wide array of complementary and standalone Value-Added Services offerings…


Customers can Mix and Match

Solutions targeted for our client’s needs and desires

In giving our clients the flexibility to grow, we increase our ability to up-sell and cross-sell

Increasing our clients’ ROI by combining

solutions

Recharge &

Promotions

m-Wallet

w/ loyalty

& location-

based

services


Value-Added Services Strategy

Cross-sell our existing customer baseVAS offerings enhance our e-recharge & mobile money products

Extend our footprintNo clear market leader in this domain: room to grow

Target mature markets with m-couponing and mobile advertising

Pursue SaaS delivery models Low saturation – high growth potential

Ideal for MVNOs, new MNO’s, and emerging markets

Rapid and cost-efficient for our customers

Documents

EServGlobal Solutions Presentation Solutions Presentation