The real challenge in mobile payments

By Arthur Goldstuck (Twitter: @art2gee)

Mobile Money World, 14 March 2012

Mobile money comes in many

shapes

Mpesa PayD

eWallet Eyenza

PayWizard ISPCASH

Celpay etc …

Africa  -­‐  Economy  

But so does money itself

Money Market - Shoprite CashSend - ATM Instant Money - Spar Mzansi Money Transfer - PO

Does the cellphone

change money?

Data starting to cannabilise SMS

76% 77%

16% 12%5% 8%

2%3%

2009 2010

Content/music

Data / Internet access

SMS/MMS

Voice calls

Data as a percentage of total mobile spend has grown from 5%-8% in 2010. 16-18 yr almost doubled, but massive increases seen in 35+ age groups.

Current vs. future brand usage (NB: Intentions , not actions)

Current usage % (main phone)

Future usage % Brand Momentum (future / current)

Nokia 51 48 (U=45, R=52) 0.95 Samsung 28 12 (U=10, R=14) 0.42 LG 5 2 0.37 Blackberry 4 24 (U=29, R=20) 6.10 Motorola 4 1 0.37 Sony-Ericsson 2 3 1.31 HTC 1 2 1.96 iPhone (Apple) 1 3 (U=5, R=1) 4.74 Other 5 5 0.97

n=1203

“Mobile Consumer in SA 2011”, World Wide Worx

How much the low-income SA user spends on phone per day:

Africa  -­‐  Economy  

And every four days:

Equivalent to …

In one month, this is how much

bread these phone calls cost:

This is what you want them to

give up for each mobile payment:

This is what they can afford:

The Golden Rule: Disposable income is not expandable To increase disposable income, you must increase income.

The Payments revolution

It is not a global phenomenon.

Local dynamics are critical.

The great Mpesa gap

12 success factors in Kenya not present in SA

1.  High unbanked population 2.  Regulatory openess 3.  Dominant telco at launch 4.  Population dispersal 5.  Culture of remittances 6.  Low cost of use 7.  Bank agnostic 8.  Swahili brand name 9.  No paperwork 10.  Quick, easy registration 11.  Extensive network of outlets 12.  Serving wananchi (ordinary folk)

And then came NFC

…and the mobile industry is suddenly Captain Picard

Captain Picard said:

“Make it so.”

But mobile industry can’t simply

decree a global payment system.

One model does not fit all markets.

The killer app in mobile money:

Homework

Thank you Arthur Goldstuck (011) 7827003 arthur@worldwideworx.com www.worldwideworx.com Twitter: art2gee