Easypaisa, Report on TPS implementation

TELENOR EASY PAISA 2014

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TELENOR EASY PAISA

Case Study; Utility payments

By

2014Ahmed Saeed Khan 9403

Marium Zehra 9802

Mohammad Shoaib Patel 9813


INTRODUCTION

Telenor Pakistan is fully owned by the Telenor group; no merger is there, It provides a high

quality voice, data and communication services. Telenor is one of the largest mobile operators

in the world employing approximately 32000 of labor force. Telenor also has a big contribution

in Pakistan’s economy, it has invested over $2.3 billion in the local economy, It has created

many jobs for unemployed people, around 27800 jobs are created by telenor in Pakistan and

has a network of more than 200000 retailers, sales and service center and franchises. Telenor’s

headquarter is in Islamabad with regional offices in Lahore, Karachi, Hyderabad, Multan,

Peshawar and Faisalabad.

Some of the Unique and Innovative Easypaisa Services are:-

Salary Disbursement

Donations

Easy Pay

Free Life Insurance

Savings

Loans

USAGE OF TPS AT TELENOR EASY PAISA

Easy Paisa has launched mobile account and ATM cards using TPS IRIS Enterprise Payment Switch,

supporting online and mobile banking, fund transfer and utility payments. This provides an additional

medium to the firm's customers who enjoy banking on the go, 24 hours a day, 7 days a week, on any

ATM anywhere in Pakistan.

TPS provides payment and card solutions worldwide and enjoys 80% Pakistani Market Share.

Approximately Easy Paisa entertains 250,000 daily transactions, and has promoted the branchless

banking culture and gained high ranking by customers in convenience and security. It is widely used by

individuals with limited or no access to banking facilities or has hectic business routines to spare time for

conventional banking processes. The record of transactions done by TPS of easy pasia is as follows:

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The creative model of TPS resulted in 5million transactions within initial 11 months. This was due to the

convenience easy paisa is providing even to non-Telenor sim users. This initiative led to the

development of mobile money in Pakistani market and its adoption by lower and middle class of

pakistan’s society was impressive.

IRIS gives comprehensive card solutions via multi-channel switch acquiring and connecting with 1 link

ATM network. TPS is the market leader of IRIS system which supports the services provided by

EasyPaisa. TPS has 80% market share of Pakistani Market. THE services provided By Easy Paisa via IRIS

are:

Khushali Bema,

Khushali Munafa,

Bill Payment,

Money

Transfer,

Ticketing, Donations,

Mobile Accounts,

ATM,

Easy Load,

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Easy Pay,

International Home Transfer

Easy Paisa facilitates Utility Payment (Electricity, Gas and Ptcl) and enables payment through

mobile accounts and branchless banking.

Benefits of TPS to Telenor Easy Paisa

The use of transaction processing system at TPS enabled them to get a competitive advantage

over their rivals. The benefits they are enjoying by using TPS are as follows:

They have started branchless banking, as there are 100% to 300% more mobile owners

than bank account owners i.e. 5% of total Pakistan’s population. Therefore, the use of

branchless banking for utility bills payment becomes easy for a common man without

opening any account.

They have minimized their cost by TPS because it is branchless banking, so they do not

have to make branches infrastructure throughout Pakistan. The daily procedures of bills

payment and money transfer is fed into their IRIS system (EASY PAISA) , so anyone can

make their respective payments, with the only need of Telenor sim.

They have increased their reach, mainly at rural customers, by offering the enormous

services of easy paisa via IRIS.

The IRIS software, which provides TPS services to easy paisa, has a huge contribution in

increasing telenor customers which is 30 million in june 2012 and telenor has become

the second largest mobile network provider in Pakistan.

The user friendly IRIS system, makes it possible for the uneducated class to transfer

their funds easily.

It has created mobile money.

Recommendations

Telenor has got an edge as compared to its rivals with the introduction of comfortable

payments and transfers system. In Pakistan, 60% population is rural and they have the

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main potential. Telenor caters their small needs of money transfer in form of

remittances and payments and enjoying huge customer base. Therefore, other mobile

companies like Ufone, Mobilink, Warid, Jazz and Zong should also start utility payment

services, because there is an enormous untapped market of Pakistan rural areas, which

are using easy paisa services promptly. If competitors would come in this market than

there would be a great chain of branchless banking among lower income group people

Easy Paisa has direct competition with Timepay, a service initiated by Zong, Omni by UBL,

MobiCash by Mobilink. However these services have not yet generated the impact similar to

that of EasyPaisa. TPS is the market leader of IRIS system which supports the services provided

by EasyPaisa. TPS has 80% market share of Pakistani Market.

The competitors should consider TPS to get IRIS for their networks as well so that they become

technologically as sound as EasyPaisa, secondly they should try to compete with strong product

line against Easy Paisa’s services (mentioned above) here is a list of services other firms offer.

Services offered in Market

S.N MobiCash Omni Timepay

1 Money Transfer Deposit or Withdraw

Cash

Money Transfer

2 Bill Payment Bill Payment Bill Payment

3 Money Transfer Easy Load

4 Easy Load Salary Distribution Plan

5 Zakat and Donation Business to Customer

Payment Solution

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By introducing utility payment services they can also increase their customer base and it will

result in an increase in total revenue of the company and also popularity will be gained. Other

companies can come up with some innovative services via EasyPaisa for example, payment of

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school fees, tuition fees, paying for fuel at petrol pumps et-cetera, which will differentiate their

company.

Customer service both before and after sale should be enhanced, so that they retain their loyal

customers and attract new ones. Timepay and Omni should adopt aggressive advertising

strategy to spread the word across the masses.

EasyPaisa has an advantage of strategic alliance, an alliance between Telenor and Tameer Bank.

Similarly the competitors should go into joint ventures and adopt somewhat similar business

model as followed by EasyPaisa, Zong and Askari bank are already in partnership, but they are

not having an effective marketing campaign. Similarly MobiCash is in partnership with Waseela

Micro Finance bank, but they have a very poor product line, which again results in poor

response from customers and you are not in a favorable position to cover losses if one product

fails, secondly it becomes hard to spread into the market as effectively, as you are not able to

cater the diverse need of the customers which EasyPaisa is already targeting.

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Education

Easypaisa, Report on TPS implementation