Vodafone Money Transfer – putting mobile at the centre of money transfer John Maynard

23th October 2009

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1. Your mother is sick but has no money to pay for hospital fees?

2. You’ve broken down in the middle of nowhere and have no cash to pay a mechanic?

3. You run a busy shop on your own but you need to pay a supplier?

4. It’s Christmas Eve and you’ve forgotten to send a friend a gift?

5. You work in the city but support your family in the countryside?

6. You run a fleet of lorries, and want to give subsistence allowance to your drivers on a per-day basis?

7. A charity needs to disperse aid directly to people suffering hardship?

What if…

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What is Vodafone Money Transfer ?

• Money transfer by mobile phone

• No bank account* required by subscribers

• Vodafone holds a trust account in a bank

against which VMT issues e-money

• Cash In /Out at local shops “VMT Agents”

• POS device is a cheap mobile phone with

special sim card

• Can be used to make many kinds of

payment

* Subject to regulatory conditions

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The Vodafone Money Transfer service

FOR INDIVIDUAL

CUSTOMERS

• Money transfer by phone

• Fast, Safe, Easy and

Affordable

• Available to anyone

• no formal bank

account

• no joining fee

• no monthly charges

• no minimum balance

• Pay As You Go charging

model

• For many types of

payment

FOR BUSINESSES

• New revenue stream for

Agents

• Convenient payment

collection [C2B] – bills, loan

repayments, purchases

• Cost effective business

payments [B2C] – salaries,

loans, social payments

• Business transaction enabler

[B2B] – deliveries, staff

expenses

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Progression: a path of natural evolution

1. Domestic Money Transfer

Simple P2P transfers

Airtime purchase

Cash-in/out via agents

• Leverage assets to launch in un-banked marketso A large existing

distribution network o Low incremental cost

of SMS o Brand & customer

base

• Work with international remittances partners, e.g. Western Union, for “funds-in” to DMT markets

• Allow third parties to use the platform to collect and distribute payments as well as integrating with existing financial services

2. Additional transaction services launched

International Money Transfer Live

with Western Union & UK Agents

Salary Disbursement LiveMfi loans distribution

Bill payments LiveMerchant services

ATM withdrawals Live Other banking integrations WIP

C2B

Banking integrati

on

B2C

IMT

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Our experiences so far…

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•M-PESA launched in Kenya in March 2007, so far:

−7.7m Customers

−12,400 Agents

−Average P2P transaction size approx.$30

−Monthly value of P2P transfers approx. $266 million

•Service launched in Tanzania and Afghanistan

The Markets

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Kenya Stats to end Jan 2009

P2P Value since launch Ksh 103,598,314,106

P2P Value (Jan 09) Ksh 13,684,542,470

Average P2P Value per transaction Ksh 2,506

Highest daily P2P Value Ksh 616,451,916

Customers 5,478,279

Agents 7,034

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MMT has wider benefits beyond the value created for the customer by the company…

Innovative service that drives customer acquisition and provides another revenue stream

Customers

Market leading service which increases brand valueBrand differentiation

Ability to target the mass market including lower value customers

Social Inclusion

Increased Employment

Both internal to companies and in the local markets through Agents and other supporting roles

There are many beneficial factors in creating a successful MMT environment

Tracking of money flows which were previously invisible

Enhanced visibility of money movements

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Its not all about technology

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•Low end phones

•Existing channels

−SMS, USSD, IVR, Web

•Transaction processing platform

Existing technologies can be used…

…this is a service not a product

•Excellent customer experience

•Board access to the service

•Focus on operational management

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Touching lives with M-PESA…