Post on 18-Jan-2015
description
Mobile Financial Services
Thomas Bostrøm JørgensenBusiness Advisor
+47 92032078
thomas.bostrom.jorgensen@gmail.com
Mobile Monday Norway
6th December 2010
1
Credentials
CEO, Luup from 2006-2010
Luup is an international leader in domestic and cross-border mobile payments
Key achievements:
Built a successful B2C mobile- and online payments business in UK and Germany
Redefined the company strategy from B2C to B2B
Expanded sales organisation to cover Europe, Middle East and Asia.
Secured global strategic partnerships with Deutsche Bank, and MoneyGram.
Recruited and built a world-class executive team based on top talent from organisations like MoneyGram, RBS, IBM, Visa and Mastercard.
Raised a significant amount of capital from existing to fund the international expansion
Speaker at key industry event like MMT, IPS, Financial Services Club etc.
Market drivers
2
Mobile phones
POSATMsPost Offices
MoneyGram Bank branches
With an estimated 7 billion mobile phones in use by 2015, traditional payment providers are now moving aggressively into the mobile payments space
180k 500k 650k 1m 25m 4bn
7 billion by 2015
Mobile payments opportunity driven by continued growth in mobile phone penetration
Mobiles provide a new channel for banking, payments & transfers with greater reach than traditional bricks & mortar locations.
90% of the world’s population has network coverage & 60% has a mobile phone.
By 2015 total number of mobile phones estimated to be 7bn.
Of these subscribers in 2015, 1.5bn are expected to be using their phones as a banking tool.
How big is the payments market?
3
... and the mobile payments market?
4
Source: Edgar Dunn & Company Forecasts 2009
Recent survey predicts the value paid by mobile to surpass $500 billion by 2015
However …
The mobile payments market has proven to be elusive…
5
Source: Innopay, Mobile Payments 2010
The 4 Market playsB
an
ke
dU
nb
an
ke
d
Developed Countries Less Developed Countries
Social and economic inclusion
Bringing all into the locally advanced financial
system
Leveraging and leapfroggingMaking mobile part of the
economic fabricThese plays influence.... Propositions Technology Ecosystem structure Ecosystem players Economics
7
Less developed countries
Unbanked and migrant populations driving demand
2 billion people unbanked
Remittances to developing countries
totalled $247bn in 2008
Over 4 billion mobile phones in useSE Asia remittances
received (2008): $60bn
Africa remittances
received (2008): $31bn
South America
remittances received
(2008): $57bn
India remittances received
(2008): $45bn
Global remittances in 2008 totalled
$305bn
Estimated 215 million migrant
workers worldwide (3% of world pop)
Over 2.5 billion people under-banked
8
The developed world demands convenience
Mobile enables anytime, anywhere value-add services
Sources: CheckFree survey, Yankee Group Research World Bank
55% of mobile banking users
have smart-phones
Mobile banking services primarily
used by 20-34 year olds – Generation Y
57% of m-banking users see convenience &
anytime access as primary usage driver
90% of phones in Japan
have NFC capabilities
Mobile Financial Services - ecosystem
9
Customers and Merchants
Micro Finance Companies
Money Transfer Organisations
Original Equipment Manufacturers
Mobile Financial Solution providers
Mobile Network Operators
Government Sponsored Organisations
Non Government Organisations
Banks
Schemes / Payment Service Providers,
SIs, BPOs
Developed Countries Less Developed Countries
Dominance of the Mobile ecosystemB
an
ke
dU
nb
an
ke
d
OEMs
MFSs
MNOs Banks
Banks
OEMs
MNOs
GSOs
MFSs
OEMs
MFSs
MNOs
GSOs
Banks
MFIs
MTOs
OEMs
MFSs
MNOs GSOs
NGOs
Dominant
Following
MNOs are in the driving seat –banks lag, and are vulnerable
11
Live services and solution providers are emerging globally
Americas SP Monitise
Fundamo
Mcom (Fiserv)
Paymate
M-Foundry
Americas live services Obopay
JP Morgan Chase
Bank of America
PayPal Mobile
Africa SP Mi-Pay
Fundamo
Paybox (Sybase)
Fronde Anywhere
Africa live services M-Pesa (Safaricom)
Zap (Zain)
Beem
Paybox
Western Union
Orange
Middle East SP Luup
Fundamo
Mi-Pay
S.E. Asia live services Jibun Bank
Globe Telecom (GCash)
Western Union
SK Telecom
Middle East live services
NBAD
National Bank of Kuwait
Zap (Zain)
Globe Telecom GCash
Paybox
South Asia live services Barclays “Hello Money”
Obopay
mChek
Europe SP Luup
Monitise
Paybox (Sybase)
Mi-Pay
Macalla
European live services Deutsche Bank
NatWest
M-Pesa (Safaricom)
Caisse d’Epargne
MoBank
Beem
Visa PayWave Asia SP Luup
Fundamo
Paymate
Mcom (Fiserv)
The industry is maturing
Time
Benefits
Pote
ntial
Socialisation
Proof of Concept
Proliferation
Industrialisation
Consolidation
13
Mobile Financial Services – what are they?
P2P payments
Remittance services
Mobile wallet transfers
Mobile airtime top-up
Bill payments
Loans and insurance
M-payments
Contactless Payments
Smart transit
Merchant payments by SMS
Event tickets
M-commerce
Account balance
Mini-statement
Account limit alerts
Account transfers
ATM/branch locator
M-banking
14
Mobile Banking:
Shinginko Bank – the world’s first mobile-only bank
Personalised banking services
Full banking services:
Account opening
Yen deposits
Funds transfers
Loans & insurance
Mobile payments
Targets Generation Y customers
Changing the face of banking in Japan
Won the Best Core Banking Project Award 2008 – Asian Banker
15
Mobile Commerce:
MoBank – capitalising on the call for convenience
MoBank is a mobile banking service, which allows users to pay for purchases, check balances.
The user can register one debit or credit card (Maestro, MasterCard, Visa or Visa Debit) to the MoBank account.
The user needs to install a free application on the mobile phone in order to be able to use MoBank
Enables mobile purchases of:
Train tickets
Books
DVDs
Event tickets
Fast food
Generates revenue through commission on purchases
16
Mobile Payments:
M-Pesa – capitalising on the unbanked value chain
Safricom, Vodafone’s Kenyan subsidiary, offers an SMS-based payment and money transfer service
Based on SMS and pre-paid accounts.
Through M-PESA a user can deposit or withdraw money, transfer money to another M-PESA customer or send money to a non M-PESA customer, buy Safaricom prepaid airtime and manage the M-PESA account.
In December 2008, Safricom announced an extension of the service with UK-Kenya remittances in cooperation with Western Union.
11.5 million previously unbanked customers (over 40% of Kenya’s adult population)
30% of users save money in their M-Pesa account
Understand the potential for disintermediation
Mobile Payments:
M-Paisa - Mobile Microfinance
17
Vodafone and Afghan mobile operator Roshan have launched M-Paisa for microfinance institutions.
In a country where 36% of its people live below the poverty line, Afghanistan is the poorest country in the world outside Africa
It also has a 40% penetration rate of 12 million mobile subscribers out of a population of 30 million
M-Paisa is based on an IVR service which will enable greater use of M-Paisa by consumers who might otherwise be excluded due to high illiteracy rates in Afghanistan
Microfinance
microcredit, savings, insurance, money transfers, and other financial products targeted at poor and low-income people
$25 billion currently at work in microfinance loans & 20 million microfinance accounts globally
India - 188 million accounts (18% of population)
Latin America and Caribbean - 14 million accounts
Africa - 27 million accounts (4% of population)
Mobile Payments:
Osaifu-Ketai – an NFC success
Osaifu-Keitai, literally meaning "Wallet Mobile", is a trademark of NTT DoCoMo, which developed the system.
It refers to the mobile phones integrated with Sony’s Mobile FeliCa ICs, as well as the services provided by the applications on these phones.
Although it is developed by NTT DoCoMo, the system is also supported by other MNOs, making it the de facto standard mobile payment system in Japan.
Osaifu-Keitai services include electronic money, identity card, loyalty card, fare collection of public transits or (including railways, buses and airplains), or credit card
18
Current headlines point to the future
NAIROBI, Kenya, Dec 2, 2010 - Financial institutions plan to leverage on mobile money transfer technology to enlist more Kenyans in the formal banking system
New York, Nov 16, 2010 - AT&T Mobility, T-Mobile USA and Verizon Wireless today announced the formation of a joint venture chartered with building ISIS™, a national mobile commerce network that aims to fundamentally transform how people shop, pay and save
India, Dec 1, 2010 - Nokia Stores To Serve As Banking Correspondents For Union Bank of India’s Mobile Payments
Australia, Nov 26, 2010 – Mobile payments taking off. PayPal reports that this year mobile payments took off in Australia
California, Nov 18, 2010 - Google CEO Eric Schmidt revealed that upcoming Android devices would include support for something called Near Field Communication
19
In summary
Mobile Financial Services are getting foot-hold everywhere
Roll-out is faster and take-up is higher in less developed countries because if offers the users greater value
Developed countries will see mass take-up and usage with NFC (driven by next gen iPhone and Android?)
Mobile operators are leading the way and banks are lagging
The future is mobile!
Thank you for listening!
20