View
214
Download
1
Embed Size (px)
Citation preview
What can mobile money look like?
• m-wallet – Virtual wallet separate from bank account
• m-banking – Underlying bank account accessed through phone
• Linked wallet – Ability to move funds between bank account and wallet
Why does mobile money matter?
• Demand is high• Scalable – no clear limit• Cost effective delivery• Reach• Fast adoption• Geography no problem• Reporting• Speed• Security
m-Pesa• 8.3 million users
after 4 years• 40% of adult
population• 14,000 cash-in /
cash-out stores• $650m / month in
deposits & withdrawals
Generally the following services…
Send money (ONNET) Bill pay
Payroll
Self top-up
Send money (OFFNET)
Micro loans MicrosavingOnline purchases Supply chain
Payroll Micro insurance
MFI transactions ATM cards
G2PLink to
schemes (VISA, Mastercard)
MFI loan collection
International remittances
But later…
Is there space for both mobile operators and banks?
Transaction revenue
Reduce airtime distribution cost
First relationship & up sell
Link a wallet to value added services
Reduce prepay churn
Customers & brand
Retail & service reach
Deposits
Corporate & SME customers
Regulatory
Trust
What mobile operators value What banks value
What BOTH value
What mobile operators bring What banks bring
Mobile Money
Regulator
Banks
MNO
Agents
Agents
• Absolutely crucial• Commissions & opportunity cost• Super agent structure– Recruiting other agents– Liquidity
• Transactions– Signing up customers– Cash in– Cash out
• Ecosystem
Mobile Money
Regulator
Banks
MNO
Agents
Regulatory considerations
• Addressing systemic risk• Managing money supply• Addressing AML/CFT• Address liability of agents• Enabling Consumers• Protecting Consumers
Mobile Money
Regulator
Banks
MNO
Agents
What makes a country right for mobile money?
• Young population• Mobile phone usage is high or growing quickly• Cash movement expensive/risky• Cash is a large part of how transactions are completed
– Bill payments– Payroll– Distribution payments.
• Geographically dispersed with significant domestic rural to urban migration for work. Need to send money home.
• Ideally, there are national network chains to partner with (eg Post, banks, distributors)
• Progressive regulator• Enablers (M-Powa, credit transfer)
A mobile money platform is a system that records balances held within mobile wallets. These balances represent bank liabilities and are accounted for within a trust account on a
bank CBS
Customer
Agent
Factory
AgentAgent Agent
CustomerCustomer
Customer Customer Customer
Customer
Customer
Mobile Money system Bank CBS
totalMobile Money
trust account
Q-money
$
Superagent
100Customer
2,000Agent
100,000
Factory
100,000
2,000Agent
2,000Agent
2,000Agent
100Customer
100Customer
100Customer
100Customer
100Customer
100Customer
100Customer
Mobile Money system Bank CBS
total
258,800
50,000
Superagent
Mobile Money
trust account
The total value of the mobile wallets is represented IN TOTAL in the trust account
Q-money
Customer X
Agent Z
Customer Y
50 300
$
2,000 1,400
$
100 10
$
Customer X sends 250 Kina to customer Y in
Madang
- 250260+25050
Customer X
Agent Z
Customer Y
50 300
$
2,000 1,400
$
100 10
$
50 260
Customer Y cashes out 260 Kina from Agent Z in Madang
+ 260
- 260
0
1,660
- 260+260
360
1,740
Customer X
Agent Z
Customer Y
50 50
$
1,740 1,660
$
360 0
$
Customer X cashes in 40 Kina at Agent Z in
Madang
+ 40
- 40
- 40
+ 40
1,620
10 90
1,780
Other opportunities for business
• Bill Payments• Bulk payments– Worker payments– Supplier payments
• Supply chain• Distributor payments• Ideas?
Advantages of MM salary paymentsLarge number of workers paid &
notified instantly
Fewer employees managing payroll
services
Reduces cost of cash-handling for payroll
Reporting
Security benefits