Universal un banked money management by phone 250313

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Universal Money Management by Phones.

Universal Un-banked or exclusively banked Money Management by Phone,

across the country.

Author: P. Abraham Paul. E-mail [email protected] Tweet @PA_Paul

Introduction: Universal money management using phone, a path breaking state of the Introduction: Universal money management using phone, a path breaking state of the art idea to enable all sorts of day to day money transactions through phones is a generic non-banking service that will accelerate Financial Inclusion and an effective tool for supporting Micro Finance needs especially of people in lower economic strata across the country.

Money through Mobile and MTM, an acronym in short herein explain the idea, features, products, services, the technology involved, the business aspects and advantages it can provide to society as a whole and the importance of need to regulate it from the beginning.

Given below is a simple schematic of Money through Mobile (MTM) system, Network and interconnects.

Money Through Mobile Money Through Mobile Scope of wide reachScope of wide reach

Mobile users

In the PLMN

Small Shop owners,

Merchants, Vendors,

Coffee shops.

Other PLMNs

Mobile

Switching

Centers

Gateway MSC

Workers, Contractors,

Physicians, Taxis/Autos.

Post Offices

Savings

AccountsINTERNET

MTM System

mTm-acc

STP

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SIM enabled Set Top Box

Institutions.

Schools,

Hospitals,

Business

units.

Utility Service

Providers,

Ticket vendors,

Vending machines.

Small Money

Lenders,

Commission

Agents.

Malls,

Super

Markets.

Petrol

Bunks

BANKSMTM-ATM

KIOSKS

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1. Money through Mobile (MTM) is different from Mobile Banking.

Author: Abraham Paul. P. [email protected]

At the outset it is to be clearly understood that Money through Mobile (MTM) system as proposed herein is not to be confused with mobility in Banking service or service of e-banking using Mobile phones as being currently provided by banks

. .

1.1 is envisaged to be transparent to regular Banking industry. All transactions in MTM service, involving services of Banks, Post Offices and other financial institutions will be in the same operational and functional level, using same technology, product and features, at par with what are available to every MTM user.

1.2. Money through Mobile (MTM) will not disrupt Banking Industry. There is this biggest myth that Un-banked Pay-by-Phone service will be disruptive to Banking industry. From the foregoing it can be seen that the fact is actually other way around. Money through Mobile (MTM) as envisaged herein will only supplement and enhance current banking system.

2. Money through Mobile (MTM) can do all sorts of Un-banked Money 2. Money through Mobile (MTM) can do all sorts of Un-banked Money

management using Phone.

Given below is a simple schematic showing the scope of Money through Mobile (MTM) as a service for communication and day to day management of money of any value from anywhere any time using phones.

It makes MTM a simple, convenient and user friendly form of system by itself with required supporting mechanism in place to handle its clients needs autonomously without human intervention at the operation level. Therefore, the proposed set up of money management using phones can be construed as an exclusive MTM Bank with the supporting mechanism readily built into it.

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2.1. Money through Mobile (MTM) as a Pay-by-Phone mechanism.

As can be seen in the schematic representation above, Money through Mobile (MTM) is envisaged partly as a Pay-by-Phone service that provide easy payment mechanism to directly transact (receive, store and send) virtually all forms day-to-day micro/macro e-payments.

MTM service can enable payments of Utility service bills, Taxes and Service charges, School and College fees, payments to job contractors and job workers by their employers, Bill payments in Shops, Sales outlets & Malls, Cinema halls, Petrol bunks, various travel Bill payments in Shops, Sales outlets & Malls, Cinema halls, Petrol bunks, various travel Ticketing with Vendors and at Vending machines, Payment of Taxi and auto fares, Road and Bridge toll payments, Vehicle parking charge, etc, etc.

2.2. Money through Mobile (MTM) as a service for quick transfer of money.

MTM system can provide facility for quick transfer of money directly between mobile phone accounts of any MTM users. Immediate Money transfer can be done any time from anywhere to Relatives, Friends, Children, to all types of Vendors, Suppliers etc.

Payment can be made into any MTM account from any Phone from any where, any time.

Given below is a schematic idea of the method of money transaction in MTM system.

MTMMTM

C T U A L

P R O P E

R T Y O F P. A B R A H A M P A U L

F C O M N E T

MTMMTM

C T U A L

P R O P E


F C O M N E T

Transfer money to any MTM account from any where.Transfer money to any MTM account from any where.

Mobile A

+97150 7654321

From Mobile Phone A in UAE, to MTM account of Mobile Phone B in India

GSM

MSC

MTM System

mTm-acc

MTM

Prepaid

Coupon

vendors

mTm-prc

GSM

G/W

GSM

G/W

Mobile B +919446543210

mTm-prc

GSM

MSCGSM

G/W

IVRS

Distant PSTN

Distant PLMN

PLMN

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12/13/2012 17Money thro' Mobile for Financial Inclusion (mTm) Abraham Paul e-mail: papaul.hotmail.com

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Land line

+971 4 7654321

SCmTm-prc G/W G/W

From Land Phone in UAE, to MTM account of Mobile Phone B in India

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2.3. Crediting money into users MTM account can be done:-

- by buying and using MTM Pre-paid coupons available from MTM franchisee outlets as currently being done in pre-paid phone service,

- through MTM franchisees by paying cash or by transferring money from Post office or bank accounts to MTM account.

- By any other MTM user transferring fund from their account. Money can be transferred from own MTM account to MTM accounts of spouse, parents, to children or to friends. from own MTM account to MTM accounts of spouse, parents, to children or to friends.

Hard cash transactions:

- Hard cash can transactions (pay-in or take-out) can be done in special purpose custom made MTM-ATM kiosks using MTM cards provided by MTM service provider to every MTM user.

- Hard cash can be had from at MTM franchisee outlets or approved money exchange dealers at small discount by transferring money from own MTM account to the Franchisee or Agentrelatives by in lieu of crediting e-money into the accounts.

2.4. Tr using Money through Mobile (MTM)

MTM can help to remove middlemen and pilferage.

The other important function of Money through Mobile (MTM) is to enable dispersal of related to Right to employment (MNREGA),

Right to food, Right to Education and Health care, and various forms Subsidies, Payment of Pensions, interest on deposits, dividend, bonus, etc., directly into beneficiaries MTM account without involving Banks, Post offices, Credit card companies and other money transfer agencies.

Thus MTM ensure effective and timely autonomous dispersal of Governments welfare payments to real beneficiaries across the country directly in their MTM account and the beneficiaries can be transact the money using their mobile phones sitting at their homes.

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MTMMTM


F C O M N E T

MTMMTM


F C O M N E T

DISPERSAL OF WELFARE PAYMENTS TO BENEFICIARIES

DISTRICT LEVEL LOCAL WELFARE AUTHORITIES

VARIOUS WELFARE FUNDS

AS BUDGETTED BY STATE GOVERNMENTS

VARIOUS WELFARE FUNDS

AS BUDGETTED BY FEDERAL GOVERNMENT


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MTM ACCOUNT HOLDERS (BENEFICIARIES)

BANK S mTm A/C

BENEFICIARYS mTm A/C

DISTRICT LEVEL AUTHORISED BANKS /

EXCLUSIVE BANKS THAT DEAL ALL MTM PAYMENTS

WELFARE FUND REACHED IN BANK A/C

MTM-ATM KIOSKS

MTM SERVICE PROVIDER SYSTEM

2.6. MTM can enable reduction / removal of all forms of subsidies.

As mentioned above, most of the government fund spent on subsidies for goods and services now are getting pilfered or squandered and go waste and great loss to exchequer. With MTM implemented, it is possible to do full value fund transfer without subsidy direct to the beneficiaries.

ies.

3. MTM can be the effective mechanism needed to implement ADHAR, the Universal Unique ID.

3.1. MTM needs a unique identification number for every MTM user like in bank accounts or in credit cards. This can be generated by MTM service provider.

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accounts or in credit cards. This can be generated by MTM service provider.

3.2. ADHAR as and when become ready can be used for identification and information needed for KYC of the MTM users and especially as government authorization for the beneficiaries for welfare payments.

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Aadhaar can be linked with MTM user's individual account in MTM system and also with their external accounts in Banks and Post offices, enabling MTM users to 'pay in' and 'take out' money from their Bank / Post office accounts using their MTM service.

3.3. ADHAR linked with MTM account number can enable personalized secure transactions to realize 'Financial Inclusion' an d 'Micro Finance support services available, accessible and affordable to everyone; especially the people in the lower economic strata, both in urban and rural across the country at minimum cost of usage as detailed below.

MTMMTM


F C O M N E T

MTMMTM


F C O M N E T

VARIOUS Govt.

WELFARE

FUNDS

Credits from Government

to designated Post Office

or Bank in the local area

for payment under

MG-NREGA and other

welfare schemes,

subsidies etc.

to the beneficiaries based

on Aadhaar service.

Bank / P.O

Govt. welfare payment to beneficiaries MTM a/c through Post Office or Bank.

Local authority makes

credits into NREGA

beneficiaries mTm a/c.

mTm-acc

MTM SYSTEM

INTERNETINTERNET

GSM MSCs

GSM GMSCs

Credits are transferred

to mTm a/c of local

administrative authorityDealing with NREGA.

mTm a/c holders Govts welfare payment dispersal through using MTM service Aadhaar

INTERNET


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P R O P E


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P R O P E


MTM-ATM

KIOSKS

1. Govt. sent credits to NREGA Local authority through Post

office or Bank.

2. Bank/P.O credit the amount into mTm a/c of the NREGA

beneficiaries.

Note: Any one can become mTM a/c holder Irrespective of

having a Mobile phone or not. Credits into mTm a/c can be

done from any other mTm account holder.

Cash can be withdrawn from own mTm a/c or credited into

own or any other mTm a/c from special purpose mTm-ATM

Kiosks using ATM cards issued by MTM service provider.

3. Mobile SIM enabled mTm-ATM kiosks are envisaged to

work with MTM system.

3.4. MTM is not INTERNET dependant.

To make the system and its operation user friendly and ease of availability at minimum cost of usage to the general mass, especially those in the lower Social and Economic Strata, it is necessary to make the system non INTERNET dependant.

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Economic Strata, it is necessary to make the system non INTERNET dependant.

3.5. MTM uses USSD technology:

MTM system as proposed herein works on Telephony signaling Unstructured Supplementary Service Data (USSD) that work just like any other telephony signaling on real time basis unlike SMS which is store and forward service.

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USSD is more simple and user friendly than SMS and there fore can be handle by all those who is literate enough to make a simple call using a phone.

USSD is much more secure than INERNET based service.

4. Money through Mobile (MTM) for Financial Inclusion of people.

There is a need to urgently implement non-banking and non- internet dependent, easy to implement, simple to use solutions to realize 'Financial Inclusion' of people in the lower social and economic strata, both in the Urban and Rural areas across the country.

4.1. Current Banking service has many limitations: The banks, both nationalized and private are white elephants, always with an eye on profit rather than service. Whatever said and done, banks will not be able to effectively serve people in the lower economic strata in urban as well as rural areas. Even with 'Banking Correspondents', formal banking procedures are not user-friendly enough for illiterate and poor customers especially for women and aged.

4.2. Micro-finance support for the poor across the country: Services of most of the Micro Finance Institutions are also unaffordable to people in the lower economic strata.

MTM system will Micro/Macro money MTM system will Micro/Macro money payment facility available, accessible and affordable to everyone; including people in the lower economic strata at an individual level, and direct disbursement of all sorts of Government welfare payment in urban and rural areas, irrespective of whether the beneficiaries own a phone or not.

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MTMMTM


F C O M N E T

MTMMTM


F C O M N E T

Business Scope of Business Scope of MicroMicro Finance Finance SMEsSMEs

MONEY BORROWERS APPROACH

MICRO FINANCE COMPANIES

MICRO FINANCE COMPANIESGSM NETWORK


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P R O P E


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E C T U A L

P R O P E


MTM ACCOUNT OF BORROWERS

MFCS MTM ACCOUNT

MTM A/C

MTM-ATM KIOSKS

MTM SERVICE PROVIDER SYSTEM

MTM-END USERS MTM-Franchisees

4.3. Money through Mobile as a business for SMEs.

MTM as a service will need Franchisees and authorized dealers everywhere all over the country generate large amount employment potential. MTM provides scope of business for Small and Medium entrepreneurs to become MTM Franchisees as Micro-finance agencies to provide Micro-finance support of all sorts of Micro/Macro money lending to common people through MTM under strict regulatory controls.

4.4. Many user-friendly Micro Finance services can be availed using phone.

For example, persons who have an MTM account can get a cash loan credited into their MTM account against a small gold deposit as collateral with MTM Service Provider or with a MTM Micro-finance support franchisee; use it themselves or can give small loans to others. They can pay it back with nominal interest in convenient installments; take again any number of times from anywhere any time, transparently, using MTM service without any human intervention by the MTM service provider or else.

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without any human intervention by the MTM service provider or else.

Hard cash loans can be taken from Micro-finance agents against small gold deposit.

The loan can be paid back with nominal in installments and take again any number of times transparently using MTM cash transfer methods without involving agents of MTM personnel.

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MTMMTM


F C O M N E T

MTMMTM


F C O M N E T

Micro Finance support using MTM service.Micro Finance support using MTM service.

MTM FRANCHISEE

Micro Finance support against small Gold deposit

MTM FRANCHISEE MTM FRANCHISEE MTM FRANCHISEE


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P R O P E


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C T U A L

P R O P E


MTM FRANCHISEE

MTMUSER

M M

TRANSFERS

LOAN AMOUNT

GOLD

DEPOSITM

REPAYS IN

INSTLAMENTS

M

TAKES LOAN

AGAIN

MTM FRANCHISEE MTM FRANCHISEE MTM FRANCHISEE

5. Money through Mobile (MTM) can change way of life for every one. 5. Money through Mobile (MTM) can change way of life for every one.

5.1. No need to carry wallets with huge amount of money. MTM provides great convenience of 'anytime' from 'any where' transaction and micro money payments without the need for carrying money around.

5.2. MTM enable saving of time, fuel and effort. -to-day money transactions could be done sitting at home/office or from 'anywhere - any time' at user's comfort and discretion without the need to commute and therefore, help save time, effort, expense on fuel and usage of roads reducing traffic congestion and pollution.

5.3. MTM reduces to great extent need to print money. As most of the transactions are as virtual e-Money transactions, MTM drastically reduces the need to print money, especially small denomination rupee notes and coins and Government can save huge expense on this.

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expense on this.

Please see my blogs: Phones can save fuel, time and efforts, space and reduce cost of printing money. http://wp.me/p1ZsI2-8j and Universal Money Management by Phones for Financial inclusion, mCommerce and mGovernance. http://wp.me/p1ZsI2-ht

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5.4. Shopping using MTM service enabled phones.

MTMMTM


F C O M N E T

MTMMTM


F C O M N E T

SHOPPING WITH MTM

SHOPS and MALLS

MTMUSER

BILL

CASH COUNTER

MTMUSER

M

MTMUSER

BILL

Paid with MTM

CASH COUNTER CASH COUNTER


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P R O P E


665544332211ZZYY

XXWWVVUUTTSSRRQQ

PPOONNMMLLKKJJII

HHGGFFEEDDCCBBAA

M

M

SN

SHOPPING WITH NFC PHONE

EXIT

SPECIMEN DISPLAY SHELF -TAP THE ITEM LABEL

TAP AND COLLECT HERE

N S

STORE TO DELIVERY

DESPACH CONVEYOR

Malls and sales outlets that are equipped with MTM-STB at every point of sale (POS), payments for shopping can be done at the counter using MTM service enabled phones,

the MTM account number displayed at the POS counter and the purchased items are collected on confirmation of payment displayed in POS computer.

Shopping with NFC enabled Phones. Using Near Field Communication (NFC) enabled phones shopping can be done without involving the sales persons and waiting at payment counters.

Customer can tap their NFC phone at the point where the specimens of the item they need are displayed. The selected items are delivered through conveyor system directly from the store to collection boxes at exit point. Customer can collect the items tapping the NFC phone at the collection point.

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phone at the collection point.

Such futuristic methods will save lot of space in malls as only one or two specimen of the item need to be displayed and the remaining can be kept in the storage area.

Also cost saving due to reduced man power needs at the billing and payment receipt counters. Better theft proof feature as no one can take out items from the display points.

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Mobile shopping on line: Shopping could be done from home by using NFC phone scrolling through catalogue and ordering the required items on line and getting home delivery. The stores could be located anywhere and thereby enable huge saving in cost of setting up big malls and super markets in costly urban areas.

6. The Technology:

6.1 The Universal nature of MTM systems and Network.

The Universal MTM System. MTM system can be a common, centrally placed, stand-alone third-party system networked to sit anywhere in the PDN and can be accessed by all phone users of different service providers over the PLMNs / PSTN / GPS.

MTMMTM


F C O M N E T

MTMMTM


F C O M N E T

Money Through Mobile Money Through Mobile Overview of Network ElementsOverview of Network Elements

PSTN

STP

MTM System

SSP SCP SMP

VOM

ADM

USSD

VENDORS, SERVICE

MTM Mobile

users

PLMN

USSD


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P R O P E


INTERNET

BANKS

Post Offices

S B

Accounts

MTM-ATMKIOSKS MTM

Franchisees

MULTIPLE MOBILE SIM SET TOP BOX (mTm-stb)

PAYMENT FOR COMMODITIES AND SERVICES

VENDORS, SERVICE PROVIDERS ETC.

STBSTB

Mobile Switching systems

and access Networks

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6.2. MTM as Universal service.

Ability to implement MTM feature in base model GSM/CDMA and Fixed line systems, base model Mobile and Fixed line phone, and over and above the ability to make available MTM service in places where phone facility has not reached yet or for persons who do not own a phone, make MTM service truly Universal.

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As explained above as MTM can work in the base levels of GSM /CDMA network the implementation and operation cost can be kept low so that the service can be made available to people at the lowest economic strata free or with negligible cost of usage.

6.3. MTM can work with Land line phones in PSTN.

The main hold up of implementing modern technology system is the lack of eco system in rural and remote areas. The key MTM services such as dispersal of welfare payments, payments of Utility bills, e-transfer of money to for payment of School fees, to laborers and contractors, to vendors and suppliers of commodities and etc can also be laborers and contractors, to vendors and suppliers of commodities and etc can also be done from Land Phones using numerals, using * and # and number keys required for USSD messaging available in land line phones.

An Interactive Voice Response Systems (IVRS) incorporated with MTM system can take care of the transactions between Land Phone and MTM system. There need to have only a PSTN telephone exchange in the locality that can handle USSD over CCS7 signaling links with the gateway systems. This will enable quick implementation of MTM service in areas where Mobile Telephony services is yet to reach.

6.4. MTM service could be availed by those who do not have a phone of their own: MTM system allows anyone to become a registered MTM user client at any MTM franchisee outlet or at local Post office or Bank. Such MTM account holder can also link their MTM account with their Post office Savings bank account / Bank accounts or with local MTM service provider franchisee outlets. MTM account can also be linked with local MTM service provider franchisee outlets. MTM account can also be linked with Aadhar ID number when it is ready.

Having registered as a MTM client, MTM service provider will be provide a MTM card that can enable the client to avail MTM service at every POS, and also can operate through any phone belonging to a relative or friend or even from public call phones using MTM or ADHAR number for identification and personal password for fraud protection.

MTM clients who do not have phone can do cash transactions using MTM-ATM cards provided by MTM service provider at MTM-ATM Kiosks.

6.5. MTM service in remote areas having telecom systems with Satellite connectivity. Government has plans to extent digital connectivity to every village. However, it is going to take long time to realize this ambitious program. Instead waiting years for providing digital connectivity every where, Government should implement IT enabled

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services using contemporary technology and facilities. MTM service can be made given d by providing small Telecom systems in these places and its connectivity with Gateway telecom systems via Satellite links.

Where there is more number of clients in a remote place, setting up of suitable Land Line Telephone Exchange with connectivity to MTM system through Satellite link can be considered. Usage of small Capacity containerized Combo-systems that can handle Fixed

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lines well as GSM phones also can be planned. Again Interconnects to MTM System shall be provided through Satellite links. See schematic below.

MTMMTM

F C O M N E T

MTMMTM

F C O M N E T

GPS enabled connectivity in remote areas.

GPS Satellite

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C T U A L

P R O P E


F C O M N E T

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P R O P E


F C O M N E T

LFS Location Finder serverIN Intelligent network system

ABS Administration and Billing system

IN

Core system

LFS ABSMTM STB at Franchisee

and other at POSLand line Telephone Exchange

Satellite Communication Centre.

PSTN

MTM service can be provided in villages having land line

telephone systems that has CC7 signaling and USSD.

MTM service can be also be provided in remote areas without

Phone facility through MTM Franchisees using Satellite links.

MTM-STB

PLMN


6.6. MTM service can be provided in very remote areas such as in hill stations and Army camps etc..

Personalized MTM service can be provided in very remote areas using special purpose MTM set top Box (MTM-STB) and Satellite.

MTM Franchisee or an approved agent in such remote area can provide MTM service enable service for clients who have MTM-ATM cards linked with Aadhaar number. Hard cash transactions can be done through MTM Franchisees or approved agents or using MTM-ATM Kiosks service or MTM Cash vending Machines.

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6.7. Make available cheaper phones and products subsidized cost for poor people.

Technology used for MTM service is suitable to work with simple and easy to use base model low priced Mobile as well as land line phones that can be ingeniously manufactured, programmed and made available to users at subsidized cost through by MTM service provider.

6.8. Solar energy powered Phone chargers where there is no power supply.

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A major bottle neck in the way of telecom penetration is the lack of power supply in rural areas. Where regular electric supply is not available or where people cannot afford to have it, Solar powered mobile phone chargers could be provided at subsidized cost. Facility for free charging of mobile phones could be provided at Public places, Post offices, Village / Panchayat offices, Bus stations / Railway stations, etc.

7. Methods of hard cash transactions using MTM service.

Most of MTM service will be e-money transactions. However, MTM system will have d provisions for hard cash transactions. provisions for hard cash transactions.

7.1. Hard cash transactions can be done through MTM Franchisees or approved agents.

Hard cash transaction through MTM franchisees. Hard cash can be received obtained at MTM franchisee outlets or from MTM cash vendors against e-transfer of money from clients MTM account to their account.

A small servicereduced from the payment.

MTMMTMMTMMTMHard Cash transaction through MTM FranchiseesHard Cash transaction through MTM Franchisees

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F C O M N E T

M

Transfers

Rs. 201/-

MTM FRANCHISEE

Cash paid, Rs. 200/-

MTM USER

MTM FRANCHISEE

Receiving cash from Franchisee or any agent.

M

MTMUSER

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7.2. Hard cash transaction in MTM-ATM Kiosks.

Hard cash transactions when needed can be done at MTM franchisee outlets or in MTM-ATM Kiosks using MTM-ATM cards provided by MTM service provider at the time of registration.

Connectivity between MTM-ATM kiosks and MTM system can be through Internet where available or through Mobile network using STB at MTM Kiosk end.

7.3. Cash transfers using VISA/MASTER credit cards. Withdrawal of cash can be done 7.3. Cash transfers using VISA/MASTER credit cards. Withdrawal of cash can be done using VISA / MASTER cards in MTM-ATMs or using MTM-ATM Cards in various Bank ATMs provided MTM service provider has business understanding with them.

MTMMTM


F C O M N E T

MTMMTM


F C O M N E T

Working of MTM - ATM

MTM-ATM KIOSKS

PLMN

MOBILE SWITCHINGCENTRES

CENTRALISED SERVER TO HANDLE SAVING BANK

ACCOUNTS mTm-acc

mTmmTm--sys sys mTm-stb

mTm-acc

mTmmTm--tec tec

Swipe card

Method

Mobile call


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MTM account holders can have facility to take out cash from MTMs ATM kiosks using MTM-ATM card.

Alternately, MTM account holder can access the ATM machine though his mobile and interact on-line with

it to process money withdrawal from his account.

ATM kiosks in distant areas could be located in the post officesor co-op banks, shopping centers etc

and could be given to MTM franchisees.

MTM ATM also can be designed to deposit money into MTM account of any MTM account holder.

Note: Anyone can become mTM a/c holder Irrespective of having a Mobile phone or not. Credits into

mTm a/c can be done from any other mTm account holder. Cash can be withdrawn from own mTm a/c

or credited into own or any other mTm a/c from special purpose mTm-ATM Kiosks using ATM cards

issued by MTM service provider.

Mobile call

Method

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7.4. Cash transactions using MTM enabled Mobile phones in MTM-ATM Kiosks or MTM cash vending machines.

MTM service enabled Vending Machines. Many useful and convenient services can be provided with MTM enabled vending machines. These are helpful in reducing manpower cost, need for keeping small change, and help to make life more comfortable.

i) Dial for Money.

feature of MTM service. Dial the code displayed in the vending machine, password and amount required and collect the cash.

just dial the short code displayed in the drinks vending machine, follow the menu for selection of required drink or any items displayed. Confirm request and collect the item.

tickets at Bus stations Railway stations, Parking lots, Cinema halls, etc.,

MTMMTMMTMMTMUSAGE OF MTM VENDING MACHINES

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F C O M N E T

M

DIAL A DRINK

*XYZ*COKE#

M

Drinks Vending

Machine

Take your COKE

Drinks Vending

Machine

DIAL A TICKET

M*XYZ*TICKET

M

Ticket Vending

Machine

Take your Ticket

Ticket Vending

Machine

M

MTM

USER

DIAL CASH

MTM CASH VENDING MACHINE

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7.4. Connectivity between MTM system and its peripheral systems. IP connectivity directly or via Web based service over INTERNET can be also options can be deployed for inter working of MTM system with Banks, Post Offices, Pint of Sales and Point of

ets, between MTM system and MTM-ATMs.

7.5. Method of refilling / recharging MTM phones.

MTM account can be refilled or recharged in MTM franchisee outlets or through approved agents. Refilling of MTM account can be done by paying cash or by credit approved agents. Refilling of MTM account can be done by paying cash or by credit card or by band DD and get required amount in the MTM account. Only government stipulated service tax will be deducted while refilling the MTM account. MTM account can be recharged on line by buying MTM prepaid coupons from MTM coupon vendors.

MTMMTM


F C O M N E T

MTMMTM


F C O M N E T

METHOD OF REFILLING MTM ACCOUNT

METHOD OF FILLING OR REFILLING MTM ACCOUNT FRANCHISEE

Rs. 500/-paid in cash.

MTM USER

MTM FRANCHISEE

M

Transfers

Rs. 500/-M

MTM FRANCHISEE

MTM

USER


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T

E

L

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T U A L

P R O P E


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T

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T U A L

P R O P E


METHOD RCHARGING MTM ACCOUNT USING MTM PRE-PAID COUPON

Rs. 300/-paid in cash.

MTM USERPAYS FOR COUPON

MTM

Prepaid

Coupon

vendors

MTM

coupons

Coupon

Vendors

Gives

coupon

M

MTM USER

recharge s his

MTM account

on line

MTM

coupons

MTM

USER

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8. MTM Set Top Box. (MTM-STB)

The killer application that will make MTM service Universal is also the use ofprovided at various POS, at MTM- Franchisee /Agents or other end

premises, Utility service providers, Educational and other institutions, Public services, Post offices, Banks, Co-operatives, Vendors, Malls, Cinema halls etc., as an interface between their Local Area Network (LAN) and MTM through Mobile Net work in various Shops, Malls, Vendors, Utility and other Service providers an institutions.

This special purpose Set Top Box (STB) shall have facility to equip SIMs of various mobile service providers, if necessary to provide multiple accesses to mobile network to take care of the call traffic and the MTM system through the signal transfer points (STP) of Mobile gateways.

MTMMTM


F C O M N E T

MTMMTM


F C O M N E T

MTM MTM -- SET TOP BOX (mTmSET TOP BOX (mTm--stb) stb)

mTm-stb

MOBILE SIM slotsPOWER UNIT

COM ports & Modem

Mobile Antenna socket


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C T U A L

P R O P E


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P R O P E


MTM Set top Box mTm-stb is a special purpose unit to enable multiple connectivity required in

user premises such as shops, malls, establishments and institutions, restaurants, cinema hall and all such places; as a user end device where a local networking for simultaneous high

volume deals are required for MTM service.

mTm-stb shall be available in various sizes catering the need for the system at the user end.

mTm-stb comprise basically Mobile SIM slots, Modem, Router, COM Ports and Power unit.

mTm-stb shall have data ports for connectivity to local Computer / Server and for data access to INTERNET and access to PDN.

ROUTER COM ports & Modem

mTm-stb has provision to connect a Mobile Network Antenna or connection to a Pico-cell.

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The MTM Set top box (MTM-STB) will interface a local computer with MTM application in it to interact with MTM system via mobile network. MTM applications required in the user devices can be download from the system. Multiple Mobile SIM, Set top box (MTB-STB) with MTM applications, are provided at Malls

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8.1. MTM-STB provide: -

Facility to equip and operate multiple 2G, 2.5G, 3G & CDMA Mobile phone SIMs of any Mobile Service Provider.

Local Computer with Interface to inter-work with MTM-STB and MTM Applications.

Facilitates to get confirmation and status of payments for goods, commodities and Services at Vendors, Malls and various Service provider premises.

9. Features of Money through Mobile (MTM).

Initial subscription to become MTM user and recharging / refilling of users MTM account through Post Offices, Banks and MTM franchisee outlets. Recharging / refilling of the MTM account in the MTM system could be done by

buying and using MTM prepaid recharge coupons marketed by the MTM Service Provider as being done now for prepaid mobile phone service. Every MTM user can pay-in money into own MTM account and any other MTM user

account. Withdrawal and e-transfer of money can be done only from own account. MTM account holder can avail loan against small gold deposit with MTM Service

Provider, credit the amount in his MTM account, use it and pay it back with nominal interest, any time from any where. Capability of e-transfer of money using the MTM prepaid coupons, by any Mobile

phone or by Land line phone from anywhere to any MTM client account is another phone or by Land line phone from anywhere to any MTM client account is another powerful feature envisaged of the proposed MTM system. MTM cash vending machines (MTM-ATM), identical to bank ATMs, provided by

MTM system provider at MTM franchisee points and other secure places shall be used to deliver real cash to MTM users. MTM-Cards. MTM users can use MTM-VISA Cards identical to credit cards; issued

by MTM service provider that can be used to receive or credit in real cash from MTM-ATM or any of banks ATMs. At locations where people need quick cash at malls, and other locations, licensed

Money changers can dispense real cash at a discount in lieu of e-transfer of money to their MTM account. Government agencies can send all kinds of welfare payments like NREGA etc to

As the transactions are recorded, it will be possible prevent avoidance of Tax

collections and the Govt. can access / collect statistics to cross check it. MTM system and network use UUSD based real time transactions that is more secure

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MTM system and network use UUSD based real time transactions that is more secure and faster than web based services. CLI and TPIN cross check, UUS authentication and encryption will enable enough

security. IVRS incorporated with MTM system can take care of the transactions between Land

Phone and MTM system. MTM service can be provided to any one by opening an MTM account with MTM

franchisee and avail MTM services using MTM-ATM card.

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10. Technology involved is identical to IN based pre-paid system. Technology involved in MTM is simple and identical to IN based pre-paid system and uses Mobile network and switching systems for access to MTM system and service. However, the MTM system shall have connectivity with Mobile Switching Gateways so that MTM system can reside outside the Telecom network transparent to any particular Telecom network or Service provider and accessible by users of all Mobile Service providers. providers.

10.1. USSD based technology. As already mentioned earlier, the message transactions between MTM mobile and MTM server will be USSD based as in pre-paid system. Unlike web based mobile banking services through INTERNET access, USSD is a highly secure CC7 signaling with additional security with Calling Line Identification (CLI), personal password and encryption making the MTM operation safe and secure. User-to-User signaling (UUS) feature can be incorporated for additional authentication for secure money transactions.

Unlike the store and forward feature used in SMS, USSD is capable to support real time transactions. It is fast, easy and convenient to use. Anyone familiar with making normal phone calls can use MTM facility without any difficulty as the transactions between the phone and MTM system is by keying in of few numerals in the key pad like *123# etc as used in prepaid service.

USSD can work in basic 2G environment and does not need of GPRS and 3G. MTM system can be directly implemented in the areas where already mobile networks are available and can be spread to other areas along with provision of mobile access.

10.2. More features for making it usable in areas where many users are not literate enough. Finger print / Iris scan, voice recognition etc can be used in place of password entries. This will make it more secure and prevent misuse of MTM account by others.

11. The business part:

MTM deals being virtual e-transactions, most of the real money remains within the MTM system. This opens out enormous business potential for various stake holders, the MTM service provider, Telecom Service provider, Franchisees, Banks and Financial Institutions etc., associated with MTM business.

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etc., associated with MTM business.

There will be above billion phones in India soon. With a modest assumption of a monthly average of Rs.10000/- transaction per phone, the annual turn around of the business will be a mind bogging sum in hundred of Trillions. The huge excess liquidity available with MTM Service provider can be profitably deployed in various instruments of money management products within regulatory norms.

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11.1. MTM service can be provided free of charge to users. With above business logic, it is possible to provide MTM service free of cost to users which will make the system popular with all types of phone users that will enhance MTM usage.

11.2. With the enhanced money business from this un-banked value added service, there will be enough profit-share for various stake holders, the Telecom service providers and others, involved in MTM business.

11.3. MTM will not disrupt banking industry. As can be seen from the foregoing MTM will in no way disruptive to banking industry. In fact it will only enhance it. will in no way disruptive to banking industry. In fact it will only enhance it.

The huge amount of micro money transactions in retail business will not reach banks. With MTM in place entire money transacted at various POS, utility service points etc will ultimately will have to be transacted through banks for settling accounts between them and MTM service providers.

12. Governments role in Universal un-banked Money management.

The urgent need for Government to act without delay:

Government needs to act fast. There are many discussions going on about how to identify the poor (as if they are a scare community), how to provide them financial support without middlemen swindling it etc. etc in every sphere for many years now.

The high level advisers in Planning Commission etc., talk of big ideas and perfect solutions that could be achieved many years ahead. There is no place for the word

limited mandate, is to quickly roll out useful schemes making use of the contemporary technology and systems to the possible extent without delay along with the futuristic ideas and plans.

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MTMMTM


F C O M N E T

MTMMTM


F C O M N E T

VARIOUS Govt.

WELFARE

FUNDS

Credits from Government

to designated Post Office

or Bank in the local area

for payment under

MG-NREGA and other

welfare schemes,

subsidies etc.

to the beneficiaries based

on Aadhaar service.

Bank / P.O

Govt. welfare payment to beneficiaries MTM a/c through Post Office or Bank.

Local authority makes

credits into NREGA

beneficiaries mTm a/c.

mTm-acc

MTM SYSTEM

INTERNETINTERNET

GSM GMSCs

Credits are transferred

to mTm a/c of local

administrative authority

Dealing with NREGA.

mTm a/c

INTERNET


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GSM MSCs

mTm a/c

holders

MTM-ATM

KIOSKS

Govts welfare payment dispersal through using MTM service Aadhaar

1. Govt. sent credits to NREGA Local authority through Post

office or Bank.

2. Bank/P.O credit the amount into mTm a/c of the NREGA

beneficiaries.

Note: Any one can become mTM a/c holder Irrespective of

having a Mobile phone or not. Credits into mTm a/c can be

done from any other mTm account holder.

Cash can be withdrawn from own mTm a/c or credited into

own or any other mTm a/c from special purpose mTm-ATM

Kiosks using ATM cards issued by MTM service provider.

3. Mobile SIM enabled mTm-ATM kiosks are envisaged to

work with MTM system.

From the foregoing it can be seen that the whole emphasize is that, the Government and its planning wing instead waiting years to make available digital connectivity to villages, it is possible to empower them by providing MTM to them with readily available systems and methods. By this way many hurdles of pilferage in various govt. welfare payments and methods. By this way many hurdles of pilferage in various govt. welfare payments could be resolved.

12.1 MTM can work on basic GSM network: The greatest advantage of MTM that I have been propagating for over ten years now is that it can be straight away implemented in places were basic GSM networks are available. Technology is identical to Pre-paid system and prepaid service that is widely used in every network.

12.2. MTM feature can be extended to land line phones also. Where there is no Mobile network, it can be implemented using modern land line systems linking these to MTM system over PSTN gateway until Mobile networks are made available. Every land line phone user can have an MTM account in MTM system and receive payments and transact it to other accounts sitting at home.

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it to other accounts sitting at home.

12.3. MTM service can be provided for non phone users through MTM franchisees. Those who have no phone can avail MTM service from can be availed using a family member's or friends phone or from public call offices using the MTM cards supplied by MTM service provider. Any one can register and open a MTM account with the MTM service provider franchisee and will be provided with MTM-CARD identical to a Credit card that can be used for transactions as being done in the same way as with credit cards.

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This feature enable MTM as a universal service that can be availed by anyone any where in the country by just having a MTM franchisee in every locality.

12.4. MTM helps to reduce subsidy burden. MTM is the best way to get out of the economic peril caused by ever mounting and poorly managed subsidies. MTM as I have been suggesting for years can pave way to do away with subsidies by giving out full amount for procurement of food, Kerosene, Electricity, transportation etc., without subsidy and welfare payments of right to employment, right education & healthcare etc. direct to the beneficiaries.

12.5. MTM can reduce tax evasion: In addition, as every payment transaction using MTM as a service are recorded and statistics can be readily made available to authorities concerned, it is possible to avoid various tax evasion that is currently rampant in every system.

12.6. MTM reduces to great extent need to print money. In addition to convenience of 'anytime' from 'any where' transaction and micro money payments with e -money transactions, MTM drastically reduces the need to print money especially small denomination rupee notes and coins and Government can save huge expense on this.

12.7. All Money Management using phones need to be regulated to make it safe secure and successful for the Users, the Stakeholders and Government.

Setting up of disparate Money management systems, product and services by various Setting up of disparate Money management systems, product and services by various parties without any regulatory arrangement will not deliver desirable results especially for financial inclusion and empowerment of people in the lower strata across the country.

Another important aspect is the need to discriminate the money involved in Money management using phone from the regular pre-paid phone service.

In the pre-paid service the money collected in advance by way of printing and selling pre-paid coupons belongs to the service provider for the service to be rendered to the user.

In the case of management of money using mobile, money collected in advance by way of printing and selling coupons continues to belong to the user like his wallet kept with service provider. Service provider has to keep this money in a dynamic trust account in the form of bank.

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Great progress happens in mobile money management across the world. NFC will pick up faster as NFC based reciprocal devices are in place. More utility systems such as NFC controlled devices that can be reached and controlled through a common WiFi linked Set Top Box at home and other premises will make the NFC usage grow faster. NFC based shopping can be of great benefit in saving mall space and personnel. NFC based home marketing enabling shopping by scrolling catalogs sitting at home

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getting home delivery of items ordered will be of great advantage to house wives. The other side of the Mobile payment is its great potential to grow into a parallel economy that can and end up in money laundering in big way gobbling up country s economy as a whole, the regular money movements and financial systems.

Therefore, strict regulatory measures need to be in place where Money through phones are based on pre-paid coupons issued by disparate service providers. Serious thoughts and discussion is required on this. It is therefore become important for the government to take immediate steps to bring It is therefore become important for the government to take immediate steps to bring money management service under regulatory controls through National Payments Corporation of India (NPCI) under the ambit of RBI.

A solution to resolve this impasse between Government and telecom Service providers is to have an exclusive banking system associated with the MTM service providers that is set up as a 3rd party system by the consortium of MTM Service providers and controlled by NPCI under the ambit of RBI.

13. Why Telecom industry should promote MTM business?

With 3G and NGN, Transition from Voice call business to direct and IP based Data and Multimedia, substantial amount of business revenue will also move out of Telecom Industry to external industries such as banks, content providers, and other multimedia service providers. These industries use the use access through other multimedia service providers. These industries use the use access through Telecom systems and networks that are set up and run with heavy CAPEX and OPEX. Since entire customer base, technology involved, systems and network involved

in the business belong to various telecom service providers, the industry has all the right to get adequate share of revenue from MTM business. It is suicidal for Telecom service providers to remain as mere onlookers while

their, system and network and their customer base are used by other industries and hijack their revenue potentials. It is necessary for telecom Industry to ensure adequate share of this revenue from these external users, to survive. There is limitation in Telephony related usage and revenue. MTM offer an

excellent non-Telephony related VAS that can enhance Telephone usage and revenue.

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14. Success of MTM service depends on the following aspects:

a) MTM system shall provide service to all Service providers across the country.

b) MTM shall be a common centralized system that shall be available, accessible and affordable to all types of users.

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c) Since the system involves high volume of very low value money transactions, the service shall be without any additional charge. Any cost involved on service shall be compensated by profitably deploying the liquidity available to them in the operation process.

d) It is necessary that MTM subscribers, utility providers, vendors, shops, banks, Post offices etc involved in MTM service are able to deal with a common MTM service provider, to make the service simple, user friendly and efficient, and to become profitable and effective.

e) Therefore, to make the system and service succeed, the money management system should be able to offer universal service anytime, anywhere, for every form of payment. To realize this, the MTM system shall be ideally a common, centralized, stand-alone, third party system that is set up by the consortium of Telecom service providers or by a third party on revenue / profit share basis with the stake holders involved.

15. Scope of exclusive GSM network and MTM system by BSNL in collaboration with Postal Department.

It is even worthwhile for the government to set up the MTM system by BSNL tied up with Postal department. It is also necessary for the government to have an exclusive GSM network that can be used for Disaster / crisis management, security, terrorism prevention, ADHAR implementation and servicing, administration and dispersal of welfare payments, pensions,, payments for disabled and old aged, money for Right to welfare payments, pensions,, payments for disabled and old aged, money for Right to employment (NREGA), Right to food, education and healthcare, using the network and MTM system. It is also worthwhile for the government to provide low cost phones and services for the poor to avail the service so that they can get the welfare payments in full directly into their MTM account as a step towards removal of subsidies.

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Author: P. Abraham Paul e-mail: [email protected] Tweet @PA_Paul

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Universal un banked money management by phone 250313

Business

Transcript of Universal un banked money management by phone 250313