Global Mobile Money Services Report

Global Mobile Money Services-2015
Extending the banking capabilities to the unbanked globally
June-2015
Executive Summary
Despite the increased focus by telcos on mobile money services, mobile money service adoption continues to be
plagued by the Government regulations, security concerns, prevalent trust of people on traditional mode of
transactions across most of the countries.
As per survey conducted by WiseStrokes, more than 30% of the users mobile phones to make payments in 2015 (as
payment options at more than 20% of the instances).
WiseStrokes survey finding states 47% of the telcos offered mobile money services in 1-5 countries, whereas 25 of the
telcos offered these services in 5-10 countries. 29% of the telcos offered services in 10 or more countries. 83% of the
telcos who responded plans to offer mobile money services within one year.
In the next few years, it is expected that the telcos will continue to focus on launching mobile money services (with
additional functionalities in the region where they exist), in order to differentiate themselves from the other telcos,
thereby strengthening their competitive positioning and generating alternative revenue stream.
The report is divided into ten sections including Overview, Current state of mobile money system, Mobile money
ecosystem, Drivers & inhibitors of mobile money, Future of mobile money, Building blocks, Business models, Mobile
payment vendors snapshots, Case studies and Key findings.
2
Table of Contents
• Introduction ……………………………………………………………………………………………………………………………………………………………………………………………………………………………….6
— Overview of Mobile Money Services
— Global Mobile Money deployments, 2004-2014
— Mobile Money services in developing countries across regions, 2014
— Mobile Money services for the customers in various countries
— Types of Mobile Money Services
— Mobile Financial Services- Key services Offered
— Types of Mobile Payment Services
• Current State of Mobile Money……………………………………………………………………………………………………………………………………………………………………………………………….15

— State of Mobile Money Services adoption across regions, 2014
— Mobile Money transactions by Volume
— Mobile Money transactions by Value
• Mobile Payment Services Ecosystem……………………………………………………………………………………………………………………………………………………………………………………..20

— Key Players involves in the Mobile Payment Ecosystem
— Benefits of Mobile Financial Services to the key Ecosystem Players
— Global Mobile Payment Trend
— Regional Mobile Payment Trend
— Mobile Financial Services Usage Concerns
— Telcos offering Mobile Services
— Telcos offering Mobile Financial services
— Telcos planning to offer Mobile Financial services
— Telcos continue to focus on increased usage of Mobile Financial Services
— Factor expected to drive the increased usage of Mobile Financial Services
— Factor expected to Hinder the adoption of Mobile Financial Services
— Reasons for Key Stake Holders for being associated with Mobile Financial Services
• Drivers & inhibitors………………………………………………………………………………………………………………………………………………………………………………………………………………….33

— Key Constituent Element facilitating the Mobile Financial Services
— Key Inhibitors to the popularity of Mobile Money
— The Future of Mobile Money
3
Table of Contents
• The Future of Mobile Money………………………………………………………………………………………………………………………………………………………………………………………………….38
— Mobile Financial Services - Way Forward
— Suggestions
— Targeting rural customers for Mobile Financial Services
— How to build effective merchant’s payment network
— Strategies to be followed in different market scenarios
— How to reach rural areas for mobile money service
• Building Blocks and Key KPIs………………………………………………………………………………………………………………………………………………………………………………………………….45

— Building Blocks for developing Mobile Money Business Models
— Key KPIs for Various Verticals in delivering Mobile Money Services
• Business Models for Mobile Money………………………………………………………………………………………………………………………………………………………………………………………..53

— Operator Centric Model
— Bank Centric Model
— Payment Network Based Model
— Over-the-counter distribution model
— Collaborative Model/Multi-consortium Model
• Mobile Payment Platform Vendors……………………………………………………………………………………………………………………………………………………………………………………….63

— Mahindra Comviva
— eServGlobal
— Gemalto
— F1Soft
— Fundamo
— mFino
— Monitise
— Pozitron
— ProgressSoft
— Fusion Payments
— Tagattitude
— Telepin Software
— Amdocs
— Halcom
— Ericsson
4
Table of Contents
• Case Studies……………………………………………………………………………………………………………………………………………………………………………………………………………………….....85
— Telenor Pakistan-EasyPaisa
— Safaricom Kenya-MPesa
— SK Telecom South Korea-Syrup
— Bharti Airtel India- Mobile Money
— MTN Africa- Mobile Money
— Vodacom Africa-MPesa
— Airtel Uganda-Mobile Money
— Telenor Pakisatan- EasyPaisa Khushal Beema
— Telesom Somaliland- Zaad
— Econet Wireless Zimbawbe- Ecocash
• Key Findings…………………………………………………………………………………………………………………………………………………………………………………………………………………………..108
• Appendix…………………………………………………………………………………………………………………………………………………………………………………………………………………………………110
— List of Mobile Money service across key regions

— Mobile Phone usage as bill payments
— Financial inclusion v/s mobile money usage comparison
5
List of Figures
• Fig 1: Global Mobile Money deployments, 2004-2014
• Fig 2: Mobile Money deployments across key regions, 2014
• Fig 3: Number of Mobile Money deployments globally across regions, 2014
• Fig 4: Major Types of Mobile Money Services
• Fig 5: Major Types of Mobile Payment Services
• Fig 6: Mobile Money Accounts v/s Active Mobile Money Accounts globally, 2014
• Fig 7: Mobile Money Accounts v/s Active Mobile Money Accounts across key regions, 2014
• Fig 8: Global count of Mobile Money transactions, 2014
• Fig 9: Mobile Money transactions per user per month, 2014
• Fig 10: Global value of Mobile Money transactions, 2014
• Fig 11: Mobile Money transactions value for different Mobile Money services, 2014
• Fig 12: Key Players involves in the Mobile Payment Ecosystem
• Fig 13: Global Mobile Payments trends made by mobile devices, 2015
• Fig 14: Mobile Payments trends made by mobile devices across Key regions, 2015
• Fig 15: Mobile Financial Services Usage Concern of users, 2015
• Fig 16: Telcos Mobile services offering trend across countries, 2015
• Fig 17: Telcos Mobile Financial services offering trend across countries, 2015
• Fig 18: Timeframe for telcos planning to offer Mobile Financial services
• Fig 19: Importance of Mobile Financial services as service offering, 2015
• Fig 20: Factor driving the usage of Mobile Financial Services
• Fig 21: Factor hindering the adoption of Mobile Financial Services
• Fig 22: Key Elements facilitating the Mobile Financial Services
• Fig 23: Mobile Security still a concern area for Mobile Money offerings
• Fig 24: User Experience and Regulations are key factors contributing to popularity of Mobile Money
• Fig 25: Importance of Technical advancements in popularity of Mobile Money services
• Fig 26: Mobile Money services in the rural areas
• Fig 27: Building Blocks for developing Mobile Money Business Models
• Fig 28: Cost structure involved in the delivery of Mobile Money Business Models
• Fig 29: KPIs of Marketing vertical for delivering Mobile Money service
• Fig 30: Operator centric Mobile Money Business model
6
List of Figures
• Fig 31: Popular Mobile Money services based on Operator centric Business model
• Fig 32: Bank centric Mobile Money Business model
• Fig 33: Smart Money mobile banking services in Philippines
• Fig 34: Payment Network Based Mobile Money Business model
• Fig 35: Popular Mobile money services based on Payment Network Based Model
• Fig 36: Over-the-counter distribution based Mobile Money Business model
• Fig 37: Popular Mobile money services based on Over-the-counter distribution Model
• Fig 38: Collaborative Model/Multi-consortium Mobile Money model
• Fig 39: Uses of Osaifu-Keitai
• Fig 40: Location of Mahindra Comviva customers
• Fig 41: Global clients of Amdocs & their locations
• Fig 42: Telenor Pakistan EasyPaisa service
• Fig 43: Transaction value of EasyPaisa service, 2009-2013
• Fig 44: Transaction counts of EasyPaisa service, 2009-2013
• Fig 45: M-Pesa service offering of Safaricom
• Fig 46: M-Pesa revenue trends, 2012-2015
• Fig 47: Contribution of various services to M-Pesa revenue, 2012-2015
• Fig 48: Syrup service by SK Telecom
• Fig 49: Subscriber growth trend for Syrup, June’11-Jun’13
• Fig 50: Bhari Airtel’s Airtel Money offering
• Fig 51: Partners of Bhari Airtel’s Airtel Money offerings in India
• Fig 52: MTN Mobile Money offering
• Fig 53: Vodacom M-Pesa offering
• Fig 54: Vodacom M-Pesa Active Customers and overall ARPU, 2012-2015
• Fig 55: Airtel Mobile Money Kiosk in Uganda
• Fig 56: Airtel Mobile Money App in Uganda
• Fig 57: Telenor Pakisatan- EasyPaisa Khushal Beema service offering
• Fig 58: Zaad Mobile money transfer service
• Fig 59: EcoCash offering in Zimbawbe
7
List of Tables
• Table 1: Major Types of Mobile Money Services
• Table 2: Mobile Financial Services- Key services Offered
• Table 3: Benefits of Mobile Financial Services to the key Ecosystem Players
• Table 4: Reasons for Key Stake Holders for being associated with Mobile Financial Services
• Table 5: Suggestions for Key elements involved in the delivery of Mobile Money services
• Table 6: Strategies to be adopted for the delivery of Mobile Money services
• Table 7: Key Activities for developing Mobile Money Business Models
• Table 8: Key Activities for Successful Mobile Money Business Model development
• Table 9: Key KPIs for various verticals in delivery of Mobile Money Services
• Table 10: Key functions to be performed by various verticals in delivery of Mobile Money Services
• Table 11: Key functions performed Marketing vertical in delivery of Mobile Money Services
• Table 12: Airtel Money subscriber growth trends in India
• Table 13: MTN Mobile Money subscribers* in key countries
• Table 14: MTN Mobile revenue across key countries
• Table 15: Mobile Money subscribers for various operators in Uganda, 2015
• Table 16: Telenor Pakisatan- EasyPaisa Khushal Beema service offering details
• Table 17: Key KPIs of EcoCash service in Zimbawbe, Feb’13-Feb’15
8
1.Introduction
Overview of Mobile Money Services
Mobile money services basically refers to the mobile financial transactions which are done through the mobile
devices. It includes an array of services like mobile banking, mobile transactions like money remittances
(domestic/international), bill payments, airtime top-ups, mobile ticketing etc.
Mobile network operators continue to aggressively promote mobile money services, as increasing number of countries
continue to push mobile money through favorable regulations by the Government, facilitating policies for increasing
broadband penetration etc.
The number of mobile money deployment continue to increase as telcos continue to explore it as an alternative
revenue stream for generating revenue and increasing customer loyalty. It also helps them to differentiate with other
telcos.
The number of mobile money deployments continue to increase, with the number of deployments reaching 255
globally, with a major portion being in the African continent.
Business models continue to evolve as mobile operators, mobile payment software vendors and gateway providers,
retailers/merchants, banking & financial institutions, mobile handset vendors, IT software/solutions providers
continue to further realign their role and contributions in the various stages of the service delivery.
Mobile money despite being promoted aggressively has witnessed relatively lower adoption owing to concerns related
to security (privacy issues, online threats etc). People in most of the rural areas/unbanked areas still prefer the
traditional mode of transaction (through cash), which further reduces the growth scope of mobile money services, as
these are the geographies being targeted by telcos for the launch of mobile money services.
10
Global Mobile Money deployments, 2004-2014
Mobile Money deployments continue to increase across all the regions globally
Mobile Money deployments continue to increase globally, particularly in the developing countries. Almost 50% of the
total deployments made till 2014 was in the Sub-Sahara African region, followed by South Asia, Latin America &
Caribbean, and East Asia & Pacific region.
The number of mobile money services (active) increased from 233 in 83 countries to 255 across 89 countries globally,
as a result of 22 new services launched in 2014 in 6 countries. This is far lower than the 59 mobile money service
launches made in 2013 across 11 countries and 58 launches made in 2012 in 14 countries.
Fig 1: Global Mobile Money deployments, 2004-2014

300
255
233
No of Active Mobile Money
250
services globally
200 174
150
116
100
66
50 38
6 10 16
4 5
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Source: GSMA, 2014
11
Mobile Money services in developing countries across regions, 2014
Sub-Sahara African & South Asia countries continue to dominate the mobile money services presence across
different countries
The Sub-Sahara African region continues to lead globally in terms of mobile money services present globally. Almost
81% of the countries in the region had Mobile Money services deployed.
Governments across increasing number of countries are focusing on amending the existing regulations and facilitating
the creation of conducive environment for encourage the entry of new players in the market and also to provide
level playing field to all the mobile money service providers. Few countries like Kenya, India etc have witnessed
introduction on new regulations for facilitating mobile money services in the country.
Fig 2: Mobile Money deployments across key regions, 2014
Sub-Sharan Africa 81%
South Asia 75%
Latin America & Carribean 65%
East Asia & Pacific 63%
Middle East & North Africa 46%
Europe & Central Asia 14%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Source: GSMA, 2014
12
Mobile Money services for the customers in various countries
Competition for Mobile Money services set to intensify, as increased number of services are present in countries
As increasing number of operators launch mobile money services across various countries of their presence, the
number of countries having multiple mobile money services has increased significantly in the past 2-3 years.
The total number of countries having two mobile money services was 56 in 2014, of which 38 countries had three or
more mobile money services. Increasing number of mobile operators are working on inter-operability of services, to
provide uninterrupted service access to their customers.
Fig 3: Number of Mobile Money deployments globally across regions, 2014
One Mobile Money Service Two Mobile Money Service Three or More Mobile Money Service Interoperable Market
Source: GSMA, 2014
13
Types of Mobile Money Services
Mobile Financial Services continues to provide the users with an array of services including mobile money
transfers, Payment transactions, Disbursement transactions, Conversion & Next Generation transactions
Fig 4: Major Types of Mobile Money Services
Conversion & Money

Next transfers
Generation
transactions
Types of Mobile
Disbursement
transactions
Money Transactions Payment
transactions
14
Types of Mobile Money Services (cont’d)
Mobile Financial Services continues to provide the users with an array of services including mobile money
transfers, Payment transactions, Disbursement transactions, Conversion & Next Generation transactions
Mobile operators started leveraging upon the opportunities of mobile payments as early as the year 2000. Since then,
continuous advancements in the handset functionality, existing network technologies, the past and recent upgrades in
the Point-of-Sale infrastructure continue to facilitate
.
Table 1: Major Types of Mobile Money Services
Service Offering Description
This includes basic services involving individual or/and P2P based transactions. Airtime
top-up and money transfers are the most widely adopted services across countries where
Money Transfers
the financial infrastructure is poor.
E.g.:- On-Net/Off-Net Remittance, Domestic/International Remittance, Airtime Recharge
Payment transactions includes services where the user makes payments for the
Payment Transactions services/merchant payments etc.
E.g.:- Retail payments, m-commerce, M-wallet, ticketing, Bill payments etc
Disbursement This includes transactions which involves more than single entity in any transactions.
Transactions E.g.:- Salary Payments, G2P payments
It includes transactions which automatically involves currency transactions, NFC based
payments etc- which is highly dependent on the level of technology deployed at the POS.
Conversion & Next
Development of financial services such as m-commerce and microfinance have extended
Generation transactions
financial inclusion beyond money transfers and mobile payments.
E.g.:- NFC based payments. Microfinance
15
Mobile Financial Services- Key services Offered
Mobile Financial Services offers a window for mobile phones users for financial transactions
Table 2: Mobile Financial Services- Key services Offered

Mobile Money Mobile Insurance
• It facilitates the transfer of money from one person to • This service basically offers micro insurance (mobile
other primarily through the mobile phones. insurance ) services to the mobile phones users.
• It generally has an interface for the initiation of the • This service can be used by the mobile phone users in
money transfer process, which is available to the the management of risks, as it provides them with a
agents as well as customers. guarantee of compensation for specified loss, damages
• It can be used for the provisioning of various services caused due to natural calamities, illness and death.
like domestic/international money remittances, • It is primarily target to the mostly the underserved
merchant payments, bill payments etc. population of the country.
Mobile Savings Mobile Credit
• This service facilitates the mobile users in accessing • Mobile credit services enables the users to avail credit
their savings account with mobile phones as an facilities through their mobile phones. Mobile phones
alternative channel. can be used to avail credit and also as a medium to
• It also enables the users to save money into some kind make the repayment.
of principal account which can offer security to the • It also includes services like buying airtime credit or
amount deposited and also provides a modest interest other related services for the users.
rate to the user on the amount saved in some cases
(depending on terms and conditions laid).
16
Types of Mobile Payment Services
Increased collaboration and immense potential results in the continued evolution of Mobile Payment services
• Mobile Payment services continue to evolve from being a

mere medium for transfer of money to relatively advanced Fig 5: Major Types of Mobile Payment Services
services like payment of insurance premiums etc.
• Initially, mobile financial transactions involved only the

mobile money transfers. Even today, Airtime top-up and
money transfers are the most widely adopted services. Money
Transfers
• With the increasing efforts of mobile operators globally

and awareness amongst the people, the mobile money
Mobile
services continue to evolve and services such as Retail Payments
payments, m-commerce, M-wallet, ticketing, Bill payments
started gaining increased popularity.
• Realizing the potential of these services, the telcos started Financial Services
promoting these services aggressively. Governments across
various countries as well facilitated such services.
Development of financial services such as m-commerce and
microfinance have extended financial inclusion beyond
money transfers and mobile payments.
17
2.Current State of Mobile Money
State of Mobile Money Services adoption across regions, 2014
Exponential increase in the Mobile Money accounts states the potential growth opportunity for mobile operators
The total number of mobile money accounts reached to Fig 6: Mobile Money Accounts v/s Active Mobile
nearly 300 million in 2014, with around 103 million active Money Accounts globally, 2014
mobile money accounts. Out of this, around 21 services
globally had more than 1 million accounts registered to 350
their services. The total number of mobile money 299
accounts increased exponentially over the past 2 years 300
Mobile Money Accounts

(from 155 million in 2012). 250
(in millions)
Though Sub-Saharan African region accounts for the 200
largest number of mobile money accounts, the highest
150
growth was witnessed in the Latin America & Caribbean 103
region, which had ~15 million accounts in 2014 (registering 100
a growth of over 50% over the year 2013).
50
The total number of active mobile money accounts also 0
has witnesses a strong growth trend. As reported by GSMA, 2014
21 mobile money services had more than 1 million
accounts which was active for 90 days, of which 5 services Mobile Money Accounts Active Mobile Money Accounts
had more than 5 million active accounts.
19
State of Mobile Money Services adoption across regions, 2014 (cont’d)
Increasing number of users are now more active on mobile money services
The increasing number of active mobile money account Fig 7: Mobile Money Accounts v/s Active Mobile
itself states the growth opportunity which exists for the Money Accounts across key regions, 2014
mobile operators to bank upon and promote using a
targeted and focused approach. 146
Sub-Saharan Africa
62
Globally, the count of active mobile money accounts
increased by 2 p.p. to reach 34.6% in 2014. The African South Asia 77
region witnessed the highest growth rate in terms of 22
active mobile money accounts from ~10% in 2012 to ~24%
in 2014. 38
Middle East & North Africa
9
Sub-Saharan region had 42.4% million active mobile money 22

accounts of the total mobile money accounts followed by East Asia & Pacific
5
Latin America & Caribbean region at 41.6%.
15
Latin America & Caribbean
The overall count of active mobile money accounts is 6
expected to grow further driven by adoption of innovative
strategies by mobile operators to enhance the service 0 50 100 150 200
usage by customers, increasing the penetration of services Mobile Money Accounts (in millions)
and addressing interoperability issues on domestic &
international scale, and increase in the intensity of usage
Mobile Money Accounts Active Mobile Money Accounts
of mobile money services as a remittance product.
20
Mobile Money transactions by Volume
Increased adoption of mobile money services has resulted in exponential growth in terms of transaction count
The mobile money transactions can be grouped into 6 major categories namely, Airtime top-up, P2P transfer, Bill
Payment Bulk Disbursement, Merchant Payment and Remittances (international).
Airtime Top-up and P2P transfer (domestic) accounted for nearly ~88% of the total transactions done in 2014. Despite
together contributing ~12% of the total transaction, significant growth was registered in Bill Payment, Bulk
Disbursement and Merchant payment services. International remittances witnessed the fastest growth in the year 2014,
when compared over 2013, though it contributed a mere 0.1% of the total transactions. The total number of
transactions through international remittances increased by 65.5% over 2013-14, primarily driven by strong growth in
the West African region.
. Fig 8: Global count of Mobile Money Fig 9: Mobile Money transactions per user per month, 2014
transactions, 2014
Total count of Transactions: 717.2 million Average Number of transactions per active user per month, 2014
2.3% 1.3% 0.1%
5 4.5
No of Transactions
8.9%
4
25.1% 3
62.3% 1.7 1.9
2 1.6
1 0.3
0.01 0.1 0.2
Airtime Top-up P2P transfer 0
Bill payment Bulk Disbursement International Merchant Bulk Bill Payment P2P Cash-out Cash-in Airtime Top-up
Remittance Payment Disbursement
Merchant Payment Remittances
Source: GSMA, 2014
Source: GSMA, 2014
21
Mobile Money transactions by Value
International remittances continue to drive the value of transactions done through mobile money services
P2P domestic transfer and Bill Payment accounted for more than 80% of the total transacted value by mobile money in
2014, of which P2P transfer itself accounted for ~73% of the total transacted value.
On a global basis, the value of bulk disbursements grew by 59.1% between December 2013-14, and South Asia
accounted for 46.4% of the total bulk payments processed in 2014. With increasing number of operators addressing the
interoperability issues, bulk payments will soon become the preferred disbursement mode for the large enterprises.
The overall average value of transaction was the lowest for Airtime Top-up services at $0.1, whereas international
remittances was highest at $247.
Fig 10: Global value of Mobile Money Fig 11: Mobile Money transactions value for different Mobile
transactions, 2014 Money services, 2014
Total count of Transactions: $16.3 billion Average value of transaction for each product category, 2014
3.3% 0.8%
3.7% $ 300
Transaction Value (in $)
7.7% $247.0
$ 200
11.7%
72.8% $ 100
$52.7 $45.0 $42.9 $41.8 $32.0 $20.5
$0.8
P2P transfer Bill payment $0
International Bulk P2P Merchant Cash-in Cash-out Bill Payment Airtime Top-
Bulk Disbursement Merchant Payment Remittance Disbursement Payment up
Airtime Top-up Remittances
Source: GSMA, 2014
Source: GSMA, 2014
22
3.Mobile Payment Services Ecosystem
Key Players involves in the Mobile Payment Ecosystem
Collaborative business ecosystem is required to ensure maximum benefits to each member involved
Fig 12: Key Players involves in the Mobile Payment
• The entire mobile payment ecosystem comprises of 7 Ecosystem
major key elements- which functions together in making
the entire mechanism of mobile payment successful. Mobile Operators
Device Makers
• The key components like Mobile Operators,

Retailers/Merchants, Internet companies and Banking &
Financial Institutions are involved in the driving this
services to the market, as they are the entities involved
with whom the end customers directly interact with. Banking & Financial
Institutions Internet Companies
• Device Makers, Pureplay Payment providers and Payment
Gateway providers are the entities which are involved in
the updation and enhancement of the underlying
technology/platform, which will further add services and
functionalities to the existing mobile financial services
offerings by the operators.
• All these entities will have to proactively estimate the

Payment Gateway Retailers/Merchants
requirements of each customers and in-turn will have to
providers
develop models depending upon the existing ecosystems.
A healthy mutually collaborative ecosystem is required to
ensure maximum benefit to each of the parties involved.
Pureplay Payment
providers
Source: WiseStrokes
24
Benefits of Mobile Financial Services to the key Ecosystem Players
Mobile Payment services offers tremendous growth opportunities for all the elements involved in service delivery
Table 3: Benefits of Mobile Financial Services to the key Ecosystem Players
Key Entities involved Benefits
• Ease of usage- reduces travelling and time spent at actual physical location incase of
Mobile Money Users money transfers through mobile
• Can earn benefits, discounts, credits and loyalty points
• Increased uptake of services
• Increased convenience and Cost benefits- owing to reduced cash handling process and
Retailers & Merchants expenses involved
• Improved advertising & marketing opportunity through mobile operators and
banking/financial institutions for tie-ups for services provided
• Improved reach to unbanked population through partnerships with mobile operators
Banks & Financial • Reduced operational cost owing to low manpower requirements for handling such
Institutions increased operations
• Better capability to handle increased transaction volume
• Increased account penetration as increased number of customers use their services
Payment Networks
through mobile operators & Banks & Financial Institutions
• Alternative revenue streams in addition to current voice & data services offerings
• Reduced customer churn, owing to promotional offerings, discount points etc
Mobile Operators
• Increased usage of mobile data as often customer uses internet connectivity to access
these services
Handset/Device vendors • Increased sales volume resulting in increased revenues
& Mobile OS providers • Sales of high end phones will improve upon the Average Selling price (ASP) of handsets
25
Global Mobile Payment Trend
Mobile Payments still has potential for further growth, as nearly 70% of the total respondents use less is less than
20% for the payments via mobile devices.
Almost 25% of the respondents used mobile devices to Fig 13: Global Mobile Payments trends made by
make payments for less 5% of the instances. However, mobile devices, 2015
almost more than 30% of the respondents used their mobile
devices in more than 20% of the instances.
18%
Mobile Payments in the last 4-5 years has been gaining
25%
increased traction owing to increased focus by telcos to
drive this as an alternate mode to make payments.
Governments as well as financial institutions are leveraging 13%
the communication network to bring increasing number of
people under financial inclusion terms.
21%
Mobile wallet has been dominant mostly in the African
subcontinent over the past and has now started to become 23%
popular in the emerging as well as developed countries.
One of the main reason for the relatively low popularity of
N=532
mobile payments is the requirements of increased
involvements and dependency on various elements like
banks, payment gateway providers, mobile handset Less than 5% 5%-10% 11%-20% 21%-30% Above 30%
vendors, mobile OS providers, distribution agents/retailers
for the provisioning of the services.
Source: WiseStrokes
26
Regional Mobile Payment Trend
Mobile Payment continues to be most widely adopted in Middle East & Africa region with almost 50% of the
respondents using it at a payment mode in excess of 50% of the instances
Mobile payments continues to witness increased adoption in Fig 14: Mobile Payments trends made by mobile
the Asia-Pacific and Middle East & Africa region, driven by devices across Key regions, 2015
increased mobile broadband penetration, competitive 100%
mobile data pricing and availability of affordable 11% 12% 16%
smartphones to support the transactions. 31%
80% 13% 15%
Mobile payment popularity was relatively higher in African 14% 29%
region owing to relatively low banking population, who 60% 27% 21%
leverage their feature phones for mostly the P2P based 17%
12%
transactions. 40% 11% 21%
28%
With the entry for e-money providers and non-bank 45%
20% 16%
operators being facilitated by the regulators and 35%
Governments in many countries, the mobile payments will 15% 11%
witness increased popularity in the coming few years. 0%
North America Europe Asia-Pacific Middle East &
N=532
The developed countries in North America and Europe Africa
continue to have relatively low number of mobile payment Less than 5% 5%-10% 11%-20% 21%-30% Above 30%
users, as these regions have high fixed broadband Source: WiseStrokes
penetration, which is being used by the users.
Technical developments like NFC payments, contactless payments is becoming popular across countries like
Singapore, Korea, USA etc, where mobile payments is being used for various services like esalary, transportation bill
payments etc.
27
Mobile Financial Services Usage Concerns
Despite the increasing popularity of Mobile Payments, Fraudulent chances, online threats, privacy issues and
complexity of the payment portals still continue to hinder the growth of these services
Fig 15: Mobile Financial Services usage concern of users, 2015
Chances of Fraud 10% 12% 16% 25% 37%
Others/Prefer the
10% 20% 24% 27% 19%
existing methods
Lack of knowledge
5% 19% 13% 54% 9%
about payment portals
Charges to be paid to
4% 17% 28% 29% 22%
banks/Agents
Complexity of Payment
6% 12% 17% 25% 40%
Portals
Online Threats 25%
5% 12% 49%
(Malware, Viruses etc)
Privacy Issues 0% 9% 15% 76%
0% 20% 40% 60% 80% 100%

N=532
Source: WiseStrokes
28
Telcos offering Mobile Services
More than 50% of the telcos provide mobile communication services in more than 5 countries
Mobile Communication services was provided by more than 85% of the total telecom operators surveyed, of which
nearly 60% of the telcos offered mobile services in more than 5 countries.
Of the 34% of the telcos offering services in more than 10 countries, ~87% of these telcos offered Mobile
communication services in more than 15 countries, where the provide their mobile communication services.
Fig 16: Telcos Mobile services offering trend across countries, 2015
34%
41%
25%
N=40
1-5 countries 5-10 countries More than 10 countries
Source: WiseStrokes 29
Telcos offering Mobile Financial services
More than 65% of the telcos offering mobile communication services also offered Mobile Financial services
More than 50% of the telcos offering Mobile Financial Services provide these services in more than 5 countries. Almost
1 out of every 2 telcos provided mobile financial services globally.
24% of the total telcos who provide mobile financial services in more than 10 countries, offered these services in
more than 15 countries.
Fig 17: Telcos Mobile Financial services offering trend across countries, 2015
29%
24% 47%
N=40
1-5 countries 5-10 countries More than 10 countries

Source: WiseStrokes
30
Telcos planning to offer Mobile Financial services
More than 80% of the telcos not offering Mobile Financial services, plan to launch these services within 2 years
Around 35% of the telcos offering mobile services (survey respondents) do not offer Mobile Payment services.
Around 83% of the telcos who currently do not offer Mobile Financial Services, plan to launch their mobile financial
services within 1 year, with remaining 17% over the next 2 years.
Fig 18: Timeframe for telcos planning to offer Mobile Financial services
17%
83%
N=16
Within 1 year Between 1-2 years
Source: WiseStrokes
31
Telcos continue to focus on increased usage of Mobile Financial Services
90% of the telcos considered Mobile Financial Services to be an important factor of their services offering.
Mobile Financial Services offering is a key offering/is expected to become a key offering which will perhaps be one of
the differentiating factor of one telcos with other. However, 10% of the respondents do not consider MFS to be very
important to their existing portfolio of mobile communications offerings.
Almost all the telcos surveyed (95%) believed that Mobile Financial Services will be a key offering to control churn.
Churn rates amongst the customers using mobile Financial services is relatively lower. Telcos can leverage upon the
retail and other such related transactions by the consumers as an early step to engage their customer with their
services offerings to develop alternate revenue sources and generate revenues.
Fig 19: Importance of Mobile Financial services as service offering, 2015
10% 5%
90% 95%
N=45
N=45
Important Very Important Disagree Agree

Source: WiseStrokes Source: WiseStrokes 32
Factor expected to drive the increased usage of Mobile Financial Services
Increasing Smartphone penetration and availability of an array of services using the umbrella of Mobile Financial
Services will result in its increased adoption.
A major factor which can result into multiple folds in the usage of mobile financial services is the ease of usage of
these mobile financial services. This can be catered to by providing knowledge to the customers as to for the usage
of these services and also educating the entities dealing with the customers at the retail points. Additionally, the
increased number of services which can be delivered under the umbrella of mobile financial services will further
drive its usage.
A major focus area for the telcos should be focused and aggressive approach towards maintaining existing relations
with the channel partners (retailers, agents) and also building a strong and reliable distribution network through
leveraging their reach capabilities. Also, these are the entities who interact and persuade customers to use these
services, and hence their role becomes increasingly important.
Fig 20: Factor driving the usage of Mobile Financial Services
Ease of usage
13%
31%
Increased partnerships/incentives to the channels partners
27%
Availability of multiple services which can be accessed
Increasing smartphone penetration

N=45 29%
Factor expected to hinder the adoption of Mobile Financial Services
Security concerns is a major hindrance to increase the adoption of Mobile Financial Services alongwith the
customers existing preference for traditional payment modes
1 out of every 3 telcos providing mobile financial services stated security concerns like data privacy issues, online
threats, malwares, phishing etc . Increasing instances of Credit card frauds have further added to the concerns of the
users, thereby increasing their reluctance for the use of mobile financial services. As a result, they still prefer to and
are loyal towards their conventional mode of payment being practiced by them.
Lack of additional complimentary benefits such as loyalty rewards, usage benefits etc in most of the case still add
to the woes of the telcos. Government Regulations in some instance also has been a major obstacle, thereby delaying
the launch of these services in most of the countries. However, increasing number of Governments across different
regions are now encouraging and modifying the existing rules and regulations to bring increasing number of people
with financial services benefits.
Fig 21: Factor hindering the adoption of Mobile Financial Services
Security Concerns (like data privacy/online threats etc)

19%
35% Customers still prefer the traditional mode of payment
23%
Lack of benefits which will persuade the customers to use Mobile
Financial Services
23% Government Regulations
N=26
Reasons for Key Stake Holders for being associated with Mobile Financial Services
All the participating entities in Mobile Financial Services ecosystem are expected to be benefitted
Table 4: Reasons for Key Stake Holders for being associated with Mobile Financial Services
Key Entities
Benefits
involved
• Provides them with an alternate revenue channel
• Facilitates them in new customer acquisitions
Mobile • Enhances the data traffic on network
Operators • Increased revenue from existing customers
• Helps the telcos in customer retention
• Enables the telcos to differentiate them from other telcos
• Provides them an alternate mode to expand to newer geographies
Banks & • Reduced operational and capital expenditures
Financial • Increased revenues through increased transactions
Institutions • Provides an alternative to cross-sell and upsell products
• Can benefit from Government, as they facilitate Government in financial inclusion
• Lower transaction & maintenance expenses
Retailers & • Alternate channel to accept payments
Merchants • Analysis of customer data can help them to improve marketing effectiveness
• Increased number of transactions (low time taken as compared to cash based transaction)
35
4.Drivers & inhibitors
Key Constituent Element facilitating the Mobile Financial Services
Mobile Money services provides a means for the telcos as well as Governments to extend the benefits of banking
services to the unbanked population in the under-developed/developing markets and to the banked population in
the developed markets.
• Technology: The underlying technology at the POS Fig 22: Key Elements facilitating the Mobile Financial
terminals and the existing mobile network Services
infrastructure will drive the increased usage of such
services. Enhancements in handsets features and
increased security levels will further contribute to Technology
growth of these services.
• Market: The service can be used to target various Infrastructure

Market
sections of the society including youth, unbanked Types of
population etc in developed and developing countries. Mobile
Money
• Risks: The various entities involved must collaborate to Transactions
share the risks and benefits of these services. A
collaborative effort to target customers and offer Regulations Risks
services reduces the risks involved thereby creating a
win-win situation for the various parties involved.
• Regulations: Regulations related to the payment norms and methodologies need to have more clarity. However,
Governments across most countries are facilitating the promotion of these services through less stringent norms and
making amendments to the existing rules.
• Infrastructure: Developments in the underlying payment networks and deployment of Point of Sales terminals at
increased number of outlets is expected to drive adoption of the mobile payment services.
37
Key Inhibitors to the popularity of Mobile Money
Increased instances of fraud & security breaches reducing customers' inclination towards mobile money services
• Fraud still remains a key area of concern:

With increasing adoption of domestic/international money Fig 23: Mobile Security still a concern area for Mobile
remittances, the growing instances of fraud and money Money offerings
launderings is expected to become an area of key concern, as it
is not included under the financial regulatory regime of any
country. With the onset of increased instance of spams,
malware and theft of personal information etc, mobile
commerce is set become the prime target area for these.
Prevent fraudulent instances, deployment of fraud management
& revenue assurance solutions will further add to the cost
expenses of the service providers. This will in turn perhaps
make the service accessibility more costlier to the customers
incase the service provider passes on this cost of the
customers. It may also prevent the success ratio of the new
market entrants.
• Security issues still concerns the telcos and device vendors:

Security issues related to mobile money is an area of concern, which the service providers needs to address on a
priority basis. Transmission of data in addition to the encryption, requires further features like tracking and
logging details of the users. As increasing number of services continue to move towards contactless payments
(NFC based) and/or cloud based, increased participation from the device vendors, chipset vendors and security
services providers will be required to ensure maximum level of security at every stage of mobile payment
process.
38
Key Inhibitors to the popularity of Mobile Money (Cont’d)
Supportive Government rules & regulations will further be a boosters to the easy to use interface for accessing
mobile money services
• Continuous enhancement of the user experience:
One of the key factors for the lower adoption of the mobile Fig 24: User Experience and Regulations are
money services in the lack of awareness amongst people and also key factors contributing to popularity of
lack of satisfactory user experience amongst the people. These Mobile Money
services have been promoted by the mobile operators on a
relatively lower scale, as a result it has failed to break the myth
amongst people that traditional model of money transactions is
still more reliable and secure. In order to increase the user
acceptance, mobile operators must educate their existing
customers of these new services, provide a simple & easy to use
interface and enhance the functionalities associated. This is
needed to increase user satisfaction level as well as increasing
the penetration amongst the existing mobile phone customers.
Rules and Regulations must support mobile money

development framework
The existing rules and regulations needs to be amended further in
order to increase the adoption of mobile money services. Mobile
operators are not allowed to act as financial institutions in many
countries owing to the existing rules and regulations. The non-
financial service providers and other entities involved as well
continue to refrain themselves from this entire ecosystem owing
to the stringent laws. The telecom and banking/financial services
regulations needs to be in closed sync with each other in order to
facilitate this service in the coming years.
39
Key Inhibitors to the popularity of Mobile Money (Cont’d)
Technology interoperability & evolving business models will facilitate in overcoming the existing the flaws in
mobile money services
• Technical compatibility instances needs to be addressed:
With the advancements in the underlying technology Fig 25: Importance of Technical advancements
framework, the mobile money payment systems deployed in popularity of Mobile Money services
earlier may/may not be compatible with the recent
deployments of mobile money services based on NFC
technology etc. Mobile operators, device vendors and
merchants must ensure that the system being deployed should
be compatible with each other and across multiple locations, as
the user must be able to access hassle free services.
• Dynamic Business Models estimated to emerge:

The traditional business models which is mostly based on the
revenue sharing model, does lacks clarity and further feasibility
probability. However, owing to the increasing number of mobile
money deployments across the world and the entities involved,
pursuing the same business model may no longer be effective
to all the other deployments. Hence, dynamic models is all set
to emerge for every deployment instance depending on the
number of entities involved from initiation to the completion of
a transaction.
40
5.The Future of Mobile Money
Mobile Financial Services- Way Forward
Mobile Financial Services offers a window for mobile phones users for financial transactions
Driven by increased adoption across most of the emerging markets, mobile financial services (mobile money transfer
services) has become amongst one of the key focus areas for the telcos. Mobile financial services is also increasingly
being promoted by retailers/merchants, banks & financial institutions alongwith the Government support through
favourable operating environment and amendments to the existing rules & regulations, thereby becoming a prime tool
for financial inclusion for the mass population
Mobile financial services is expected to witness growth in the following areas
• Mobile operators will continue to make significant investment in mobile money transfer services, as it will provide
them with an additional revenue stream and also enable them to prevent customer churn. With increase in the
innovative services to attract more and more customers to use mobile money services, increasing numbers of
customers are expected to further get added to these services, as mobile broadband and affordable smartphone
increases across countries, particularly the developing countries.
• The obstacles associated with the interoperability of services seem to be diminishing in the recent years, as mobile
operators continue to address this issue. As more and more mobile operators enter into roaming agreements with
other telcos to offer uninterrupted services to their customers while on roaming in different countries, a seamless
integration between the payment gateways, merchants and mobile operators is required which will enable in
increased mobile transactions (in terms of value as well as volume) irrespective of the location of the customer.
• Mobile financial services will gain traction in the year 2016 and beyond as banking and financial institutions are
increasingly inclined towards providing micro-financing services to the customers. Mobile payments services is
expected to make inroads into the various daily activities of the customers like bill payments, insurance renewals
etc, thereby making a positive impact on the economic development of the society.
42
Suggestions
Table 5: Suggestions for Key elements involved in the delivery of Mobile Money services
The mobile operators should look towards increased partnerships with the banks & financial
institutions, merchants etc- to basically understand the dynamics of the existing market
environment. They can also focus on integrating these services with various value added
Mobile Operators services offerings like m-health, m-commerce, m-education etc, thereby providing them
with an opportunity to maximize their revenues. Leveraging analytical tools like business
intelligence/Big data analytics, the mobile operators can target individual customers
through location based services and also play a role of key revenue enhancement partner for
the merchants through this, thereby creating a win-win situation for both the entities.
Banking and Financial Institutions can leverage upon the geographic reach capabilities of the
mobile operators, to bring more customers under the financial inclusion. They can partner
Banking & Financial with multiple retailers/merchants, payment gateway provider and mobile operators to
Institutions further increase their presence where they cannot make a physical presence. Mobile money
services also provides them with an additional revenue stream, without incurring significant
cost on manpower to process the daily operational activities.
The Government & Regulatory bodies in various countries should focus on providing
Government & favourable and competitive playing environment for mobile operators. This will also help in
Regulatory Bodies the financial inclusion for a large number of unbanked population, thereby contributing to
the economic growth.
The devices vendors and solutions providers should focus on the increasing the security
features associated with the mobile financial services. They should provide interoperable
Devices Vendors &
and easy to operate POS devices, kiosks and also includes features which supports/ is
Solutions providers
compatible with the existing technology platform or the one which is expected to be
deployed in near future.
43
Targeting rural customers for Mobile Financial Services
Telcos must target the low-penetration rural population to drive mobile money usage
Despite increased adoption amongst the urban customers, the Fig 26: Mobile Money services in the rural areas
mobile operators must target the rural customers through an
attractive product proposition offering by leveraging their own
distribution networks as well as retailer network as agents.
The telcos must focus on certain key factors in order to make
their rural mobile money strategy become successful.
Easy to use interface: Telcos must focus on providing easy and

user friendly interface or IVR solutions to enable the customers
provide friendly access to services, as rural population is
characterized by relatively low literacy, financial and technical
competency levels.
Sales & Distribution network: The telcos must forge active

partnerships & alliances with local retailers, mobile service
agents, local influential people like teachers, leverage existing
network of post, to increase their presence in the countries.
The telcos can leverage upon their existing customers as well
to cross-sell/up-sell its services offerings
Attractive product offering to target mass set of customers:

The telcos can through analysis of the earning, spending, usage
pattern of the customers in the rural areas, should develop an
attractive product proposition to target them with mobile
money services.
44
How to build effective merchant’s payment network
Merchants/Retailers constitute an effective part of the mobile money payment system
Mobile operators must focus on selecting and building an effective merchant network considering the factors such as
PoS experience, service reliability and pricing flexibility which they can offer to the customers.
The 3 main factors which the mobile money providers should consider while selecting merchant network includes,
― Understanding of the market conditions
― Ensure that the customer frequently use the services
― Merchants must be able to make timely payments to the suppliers
• Mobile money providers need to ensure to make significant investments to acquire merchants. The payouts to their
sales representatives must be made on the basis of active merchants for a period of time and also should disburse
the commission to these merchants in a timely fashion to avoid displeasure amongst them.
• Imparting education about the usage of the mobile money services such as reducing the cash transactions in their
daily business use will help them reduce operational costs. Also, incentive schemes such providing gift items, goods
etc, to further encourage them to keep high credit score for working with them.
• Selection of merchants through partnership with third-party merchant acquirers or in-house teams can also help the
mobile money providers to effectively promote their products and payment platform to a large section of customers.
This can help the mobile money providers to leverage the skills and expertise of these strong merchant partners to
increase their revenues, as payout is done to the partners base on the revenue transaction value done.
• Mobile money providers must actively focus on enhancing the skills and capabilities of their merchants through
training sessions and product documents usage details sharing. They should also keep a check on the performance of
their merchant partner performance to review their activity and performance on a regular scheduled basis.
45
Strategies to be followed in different market scenarios
The strategies to be adopted by the mobile operators must dynamically be aligned to the prevailing market
conditions
Table 6: Strategies to be adopted for the delivery of Mobile Money services
Description: In such markets, there exists a mobile operator which has
majority of the market share (monopolistic market), though a large number
of other mobile operators do exist in the market.
Concentrated Market-
Strategy to be adopted: In such markets, the dominant mobile operator can
Dominant mobile
Scenario-1 capture significant value in the direct/indirect transaction of money. Since
operator has majority
this is market dominated by a single large player, small mobile operators
of the market share
even if they partner amongst themselves- they will not be able to gain a
significant growth in revenues, through their market share for mobile money
might increase just slightly.
Description: Such market is characterized by existence of multiple mobile
Fragmented Market-
operators with similar market share (oligopolistic market).
Mobile Operators who
Strategy to be adopted: In such a fragment market, the mobile operator
Scenario-2 are first to partner
which is able to strategically form a partnership with other mobile operator,
for Mobile Money
to successfully plan, implement and extend the mobile money services will
Platform do succeed
succeed.
Description: This type of market is characterized by the existence of
Fragment Market- multiple mobile operators, with 2 mobile operators dominating the market
The second mobile (duopolistic market).
operator still has a Strategy to be adopted: In such markets, the mobile operator which
Scenario-3
chance to catch up launched its services first and has leading market share must focus on
the largest mobile retaining the existing customers, whereas the second mobile operator must
operator focus aggressively on the promotion of its services, which may help it in
increasing its share of mobile money customers slightly.
46
How to reach rural areas for mobile money services
Mobile money providers can further accelerate the growth of their services through increased rural customers
onboarding their mobile money services
The mobile money providers need to overcome various potential barriers to deploy and leverage the benefits of their
services including logistics challenges, low purchasing power parity, relatively low literacy levels, technical
backwardness as compares to the urban areas.
Tackle supply chain and delivery challenges: In order to overcome such challenges, the service providers can
leverage upon their existing networks, forge partnerships with local suppliers or appoint some of the members of the
locality as the suppliers for their services. For Instance, Tigo in Chad leverage upon its existing GSM network to offer its
mobile money services and is now quite popular for its financial services offering in the region.
Formulation and offering of a compelling product proposition offering: The mobile money providers post the analysis
of customer behavior and regional demography, can design and offer a product which could cater to their daily
requirements and is in-sync with their spending/saving pattern. A service offering which can be cost beneficial to the
customers and also convenient to use, is bound to witness increased adoption. Sri Lanka’s telecom operator Dialog’s
eZcash offering enables the rural customer to pay their electricity bill using mobile wallet, thereby reducing their
travel time as well as travel cost.
Creation of a user friendly and easy to access service: Considering the low literacy level and relatively technology
backwardness state of the rural customers, the mobile money providers can design a simple and easy to use interface,
which the rural customers can understand and use with ease. A IVR application in this regard will also be useful for the
customers.
47
6.Building Blocks and Key KPIs
Building Blocks for developing Mobile Money Business Models
Service providers must ensure proper selection, co-ordination and functioning of key building blocks while
formulating and deploying business models
Selection of key components in the formulation and delivery of business models is necessary, as it enables the mobile
money service provides to create, deliver and capture values.
Fig 27: Building Blocks for developing Mobile Money Business Models
Sales & Distribution network
Key Resources for service

Customer Segmentation
Customer Relationships
Value Proposition
Revenue Streams
Key Partnerships
Cost Structure
Key Activities
delivery
Building Blocks of Mobile Money Business Models
49
Building Blocks for developing Mobile Money Business Models (cont’d)
Table 7: Key Activities for developing Mobile Money Business Models
The identification of the target market is the foremost important criteria while formulating
a business model. The target customers can be of different categories like unbanked &
Customer banked population, young customer segment, travelers, people residing in developed
Segmentation countries which has access to latest technologies like NFC. Post identification of the target
customers and segmenting them on the basis of certain criteria, designing and offering a
product through the retailers/agents is required for any business model to be successful.
The core value proposition which any financial product offering can provide is easy
accessibility and convenience to use. This can be done by offering the mobile money service
offerings either through network of retailers/agents/local people in a particular geography
Value Proposition or the mobile operators can leverage their own presence to offer these services to their
existing customers. The most important values which any financial product should target to
deliver the customers is accessibility to the service irrespective of location, convenience to
use, secured transaction environment and reduced transaction costs.
The 2 modes for delivering the service is either leveraging the network of agents- whereby
Sales & Distribution
the network reach of mobile operator is limited and the agent is solely responsible for
network
delivery and after sales services; or delivering the services through own network to the
existing customers who donot use mobile money service on their mobile handsets.
A key factor for the long term sustainability of any service offering is the loyalty of the
Customer customers for any particular service. Any business model while being formulated must focus
Relationships on the strategies to be includes to prevent customer churn and also encourage the
customers to increase the frequency of usage of the service. This can be achieved either
directly through in-persona assistance or through self accessible services from the handsets.
50
Table 8: Key Activities for Successful Mobile Money Business Model development
A major factor for determination of the revenue depends on the basis on how the customer
is charged. This can be either subscription fees or usage based fees which is being charged
Revenue Streams
to the customers. Also, the payout to the agents can be made on the basis of new customer
acquisitions count or on the number of active usage customers after a specific time frame.
Identification of key components which will be actually be facilitating the delivery of the
Key Resources for
services in another factor. The various key components which can be leveraged to provide
service delivery
services includes product offering, network of agents/distributors, transaction platform etc.
Management of the various activities such as marketing & promotion, channel management,
Key Activities product design & implementation etc are some of the key concerns areas which determine
the success and failure of any product.
One of the most important factors which contributes to the success or failure of any
business model is its network reach and viability. This is mainly accomplished via
Key Partnerships
partnerships & alliances with various sales & distribution elements comprising of mobile
operators, distribution agency, banks & financial institutions and technology partners.
There is a cost associated at every stage of the service delivery. A business model must have
Cost Structure an optimal balance of the technology costs, agents/distribution network commission cost,
service delivery cost, marketing expenses and service usage costs, starting from
implementation to execution phase of the services delivery.
51
The cost structure involved for service delivery has a direct impact on the profitability of the mobile service
provider, through reduction in cost of sales by shortening the service delivery chain
The mobile operators can directly promote/approach to its customer using mobile money for airtime recharges. This
will enable it to reduce the cost involved in the payments made to the distributors/ retailers (~around 15%-25%) on a
average depending on the market they operate.
Fig 28: Cost structure involved in the delivery of Mobile Money Business Models
Sale of Airtime through
Paper Scratch cards
Printing the
Mobile Service Distributors/lea Small retail
Paper Scratch Customer
Provider ding retailers shops
cards
Cost to the Mobile Operator

Sale of Airtime through
Mobile Money
Mobile Service
Customer
Provider
52
Key KPIs for Various Verticals in delivering Mobile Money Services
The Operational KPIs for the delivery of Mobile money service includes that of the Back office operations, Call
centers and Risk Management capabilities
Table 9: Key KPIs for various verticals in delivery of Mobile Money Services
Vertical Key Functions to be performed
The Back office operations must ensure the validation and activation of the customer & agent
accounts, within the specified timeframe with 100% accuracy (as per SLAs). They should also
perform and generate upon the necessary reporting requirements on a regular periodic basis, which
Back Office includes agent monitoring (for the number of transactions done and the individual and total value
Operations of transactions). Also, in order to keep the management updated, a dashboard stating the monthly
status of total customer accounts, active customer accounts, total agents etc must be provided to
keep track of the business. In order to ensure seamless services, the Back-Office operations should
also help in the resolution of queries from the customers/agents.
The call centre agents must resolve the customer/agent queries within the stipulated timeframes.
The key KPIs to which they must adhere to is Time to answer, Call handling time, % of calls
abandoned etc. In order to drive a positive and seamless customer experience, the interaction of
Contact
the phone with customers/agents must be as per the laid-down procedures. The call centre agents
Centres
must properly guide and train the customers/agents requiring any information/guidance, which can
only be achieved once they have been provided with proper comprehensive training and are
regularly updated about new product launches or new product enhancements.
This includes keeping a vigil on the daily activities being performed and pre-formulated risk
assessment & management strategy to identify key potential risks and avert them. A periodic track
Risk of the suspicious activities as against the estimated numbers will help in identification and proper
Management security of the entire transaction process, thereby averting any instances of security breach in the
future. This can be achieved through the formulation of defined internal procedures to reduce risks
which includes processing errors, internal fraud, process failures etc.
53
Key KPIs for Various Verticals in delivering Mobile Money Services (cont’d)
The Sales & Distribution KPIs includes recruitment, training and management of the mobile money agents/local
promoter & distributors
Table 10: Key functions to be performed by various verticals in delivery of Mobile Money Services
This includes finalization of process for the short-listing, selection & recruitment of agents based
on/as per the existing portfolio of services being offered. The next step includes verification and
validation of the agent credentials. Post these, contract needs to be signed with the agents as per
Recruitment
the specified SLAs (like periodical targets for agents etc). Post this, the mobile money provider
must ensure the agent starts its operations post completion of the training process and support
them with marketing promotional campaigns etc.
This includes providing periodical training to the Mobile Money team, which includes selection of
training centres for the agents which can be at any location or though voice recordings, selection
of the trainers who can guide them about the various processes. A key factor to measure the
training effectiveness includes the evaluation of the knowledge imparted to agents through
Training
evaluation process, continuously upgrading the training module as per the needs of the agents with
focus on specific areas etc. A periodical update regarding the training sessions conducted, total
participants, process improvement required with further help in improving the effectiveness of the
training sessions.
This includes a periodic visit to agents/local partners by the sales agents and take a note of their
performance metrics like target v/s achievement, challenges being faced, support required. Also, a
key aspect to be ensured is the maintenance of the merchandising and branding standards at the
Management
agent outlets. Onsite as well as physical monitoring of the agents and their performance must be
done on a periodic basis to ensure proper functioning. All these measures coupled with proper
communication with agents as well as internal management is required for success of the business.
54
Key KPIs for Various Verticals in delivering Mobile Money Services (cont’d)
The marketing function of the mobile money service provider must ensure strong brand presence, formulate
strategies for increased customer adoption and proper communication to various key stake holders
Table 11: Key functions performed Marketing vertical in delivery of Fig 29: KPIs of Marketing vertical for
Mobile Money Services delivering Mobile Money service

The Marketing function performs key functions including Brand
creating brand awareness, educating the customers, awareness
driving increased customer adoption & activations,
branding & promotional activities and customer
segmentation & targeting.
— The brand awareness basically includes conducting
ATL/BTL activities, SMS campaigns, road shows etc to Customer
Key
increase the visibility of the brand. segmentatio Customer
Marketing
n& education
— Customer education basically refers to educating the Targeting
KPIs
customers about the value proposition of the Mobile

Marketing money services and focus on building customer
education and knowledge.
— Increased customer adoption & activation is another
Increased
service area, which is basically driven by loyalty customer
programs, reference schemes and launching of adoption
schemes for retailers/agents to customer acquisition.
— In-depth analysis of target market has to be done for
service launch. Proper segmentation of customers,
identification of requirements etc are some of
perquisite for success of mobile money service.
55
7. Business Models for Mobile Money
Operator Centric Model
Mobile money services provide an additional revenue earning sources for the telecom operators through increased
network usage and via the new service/applications which the consumers will use. This can be offered as an additional
service offering to their existing VAS portfolio.
The telecom operators in many countries have been promoting/providing this service and offer services like pre-paid
mobile top-ups and online purchases by the customers through its billing platform. This has enabled them to extend
their reach to increased customer base and operators have also started to adopt contactless payment in some of the
countries.
Fig 30: Operator centric Mobile Money Business model
Retailer Mobile Bank

Operator
57
Operator Centric Model (cont’d)
Operator centric models are popular in the developing countries (like Philippines and those belonging to the African
region like Kenya, Nigeria etc), where this can be used as a medium to provide banking services to the unbanked
customers in the region. The mobile operators does positions itself as the financial services provider (banks) and
assumes the responsibilities of a payment solution provider along-with the associated responsibilities by adhering to
the financial regulations.
This service is popular in the regions where banking services in not available to large population (the country has a
high unbanked population) and also in the countries where remittances are frequent. The operator centric model can
become a big success provides that the operator offers relatively cheap SMS services/low data rates- so as to increase
the frequency of usage by the customers.
Few of the successful operator centric model includes G-cash in Philippines and M-Pesa in Kenya.
Fig 31: Popular Mobile Money services based on Operator centric Business model
58
Bank Centric Model
Banking and Financial institutions are also foraying into the business of mobile financial services. Banks are offering
these services as an additional service offering, primarily as an extension to their traditional banking service. In most
the cases till date, the services provided included a simple mobile banking facility which facilitates enquiries related
to the account or just the fund transfer facility.
Mobile banking does provides a growth opportunity to the banking institutions as well, as they tend to growth in the
customer count. However, risks associated with respect to credit limit being provided to the customers is something
what is concerning to the banks. Also, the risks related to ownerships of risks and cost incurred is also a key factor
which the banks must consider.
Fig 32: Bank centric Mobile Money Business model
Retailer
Mobile Bank Payment

Operator Network
59
Bank Centric Model (cont’d)
The banks incase if they offer such services at a relatively low rates, they might cannibalize their existing traditional
banking system itself. Also, the volume and amount of transactions might be relatively less as compared to the
traditional banking system.
The banks develop these banking applications either themselves or through third party vendors which helps them in
integrating the payment gateways. This service is estimated to be successful in the countries where there exists large
unbanked population and the banks wanted to expand on a big scale. It can also be popular in countries where large
amount of population has bank accounts and have access to mobile data services, which would enable them to provide
connectivity to avail the banking services.
Few of the successful operator centric model includes First National Bank in South Africa
Fig 33: Smart Money mobile banking services in Philippines
60
Payment Network Based Model
With the gradual evolution of the mobile money business ecosystem, few companies which do not offer either
telephony services or banking services have also made inroads into this segment. Some of the companies like PayPal
which provided payment networks and are strongly active in the online payment segment (provide payments
between customers or between customers and merchants).
These payment services are extending their presence from the online payments to mobile payments stage. However,
the only hurdle which these companies may face is the inconvenience of point-of-sale transactions
Some of the leading players adopting such model includes WIZZIT, Crandy, UnionPay, YeePay, Taobao etc.
Fig 34: Payment Network Based Mobile Money Business model Fig 35: Popular Mobile money services
based on Payment Network Based Model
Retailer
Mobile
Bank
Operator Payment
Network
61
Over-the-counter distribution model
This model leverages the distribution network of the mobile operator, whereby agents are involved in facilitating
the mobile money transactions. This model does not makes it mandatory for the customers to have a mobile money
account. Customer not having a mobile money account, can take assistance from the agents who help them in
getting the transaction done.
The OTC model is suitable for the markets where the percentage of people having access to financial services via
banks & financial institution is relatively less. Also, it is suited for the markets characterized by relatively low
mobile penetration.
This model provides an alternative to the banking services for the people in the under developed areas- and makes
it possible to provide mobile money services to the customers who do not subscribe to the services of any particular
mobile operator.
Fig 36: Over-the-counter distribution based Mobile Money Business model
Check whether the

State the purpose to Provide then with Collect the receipt
transaction has been
the agent the required cash of the transaction
done
62
Over-the-counter distribution model (cont’d)
Some of the popular mobile money services leveraging this model includes EasyPaisa in Pakistan and bKash service in
Bangladesh. EasyPaisa was launched in the year 2009 in Pakistan.
Fig 37: Popular Mobile money services based on Over-the-counter distribution Model
63
Collaborative Model/Multi-consortium Model
Ihe Collaborative/Multi-consortium business model involves multiple entities like Banks & financial institutions,
Mobile Handset vendors, Hardware/POS equipment providers, Credit cards services providers, mobile operators for
providing the mobile money services.
The entire cost of the deployment of the mobile money services is shared amongst the involved entities- whereby
telcos provides the network and communication infrastructures, sets up the application on the users phones etc.
Handset vendors facilitate the services through provisioning and providing hardware & software enhancements in
their mobile handsets. Banks & financial institutions also play the role for acquiring and provisioning/activating the
service.
Fig 38: Collaborative Model/Multi-consortium Mobile Money model
Banks
Mobile
Mobile Handsets
Operators
Vendors
Consortium
Hardware/
Credit POS
Cards equipmen
t
64
Collaborative Model/Multi-consortium Model (cont’d)
Ihe Collaborative/Multi-consortium business model facilitates the participating entities to focus on their key service
areas/roles based on their level of involvement in the consortium and on their core competency level.
Such types of models are more prevalent in the developed countries, where the existing technology is relatively
advanced and the participating entities need not focus much on educating the service details to the customers.
One of the popular service offered leveraging this model is Osaifu-Keitai by NTT DoCoMo in Japan.
Fig 39: Uses of Osaifu-Keitai
65
8. Mobile Payment Platform Vendors
Mahindra Comviva
Mahindra Comviva offers a portfolio of products for the global telecom industry clients including Digital Lifestyle
Solutions, Internet & Broadband Solutions, Messaging Solutions, Busines Solutions, Managed VAS Services and Mobile
Financial Solutions.
Mahindra Comviva’s Mobile Financial solutions are targeted towards the telcos, banks & financial institutions and
retailers, to help them leverage the benefits arising out of the solutions supporting mobile services.
The Mobile Financial solutions from Mahindra Comviva has been deployed in across more than 55 countries with more
than 120 deployments globally. The mobile financial services is being used by more than 750 million customers
globally. Some of its leading clients includes Idea, Vodafone, Maroc Telecom,NTT DoCoMo, Mobinil, UTS etc.
Fig 40: Location of Mahindra Comviva customers
67
Mahindra Comviva (cont’d)
The Mobile Financial Solutions from Mahindra Comviva includes mobiquity Banking, mobiquity Money, mobiquity
Wallet, payPLUS, PreTUPs.
• mobiquity Banking: It enables the banking and financial institutions to partner with merchants, retailers, card
providers and telcos for the delivery of mobile banking services to their customers.
• mobiquity Money: This enables the telcos to provide their customers with the ability to transact money and make
payments. These services can be leveraged by both unbanked as well as banked customers. The mobiquity Money
services of Comviva for internal money transfer can be made across countries including Bangladesh, Morocco, El
Salvadaor, Zimbawbe, Guatemala, Honduras, Krygystan, Somaliland.
• mobiquity Wallet: This is a digital wallet solution offering from Mahindra Comviva, which offers customers with the
benefits of making payments, couponing, ticketing. The solution basically integrates e-commerce, m-commerce and
remote & proximity payments (like NFC, QR Code, Bioemetric etc ) in a single offering.
• payPLUS: This facilitates in mobile payments by converting the mobile devices of the customers into a POS device,
which enables the customers in payments making. payPLUS is supported by more than 4500 mobile and devices.
Further, it is being used in more than 210 cities in India by more than 3000 merchants/retailers.
• preTUPS: IT facilitates in account top-ups and also facilitates in the delivery and management of voucher based
products. It has facilitated 1.6 million retailers, 155 million subscribers and 12.5 million daily transaction for one of
Asia’s leading service provider. It has the capability to support & facilitate 21bn preTUPS transactions every year.
68
eServGlobal
eServGlobal provides solutions to the telcos & financial service providers in more than 50 countries. It offers an array
of solutions - of mobile wallet, mobile commerce, recharge and agent management features to over 65 customers.
eServGlobal partners with MasterCard and BICS for its JV HomeSend global payment hub, which facilitates transfer of
money in mobile money accounts, bank accounts, cash outlets, payment cards etc. It also has partnerships with
leading firms like Oracle, MasterCard, EMC2,Nokia Siemens Networks, Airtag, Soprano for the delivery of its mobile
money services. The company reported a total revenue of $32.1 million for the financial year ending in October 2014.
The solutions offered by eServGlobal includes
• VAS: It comprises of its IVR offering (Universal Interactive Platform) and Voice & Video Mail services (Mailis) for the
telecom service providers.
• Recharge: eServGlobal offers its PayMobile recharge solution to the customers. This offering has managed upto
350,000 agents and 600,000+ transactions/busy hour.
• Promotions: PromoMax offers the service providers to target and send personalized messages to the customers. The
company has deployed it as a standalone solution in North Africa as well as SaaS-based deployments in New Zealand.
• Mobile Money: The PayMobile platform offering from eServGloabl is an mobile money solution offering which helps
the customers in making financial payments. It is offered in 2 variants namely Standard Wallet (in emerging
countries for facilitating services like salary disbursements, bill payments, domestic money transfers, merchant
payments etc) and Advanced Wallet (in develop countries where it can be used to make NFC contactless payments).
• International Remittance: The JV offering of eServGlobal, BICS and MasterCard- HomeSend facilitates in the
international remittance, international air-time transfer between payment cards, mobile money accounts, bank
accounts etc irrespective of the location of the user.
• Mobile Financial Services: PayMobile offering in the emerging markets provides the telcos, insurance service
providers and customers with the services comprising of Micro Savings, Credit Scoring, Micro Loans, Micro Insurance
etc. 69
Gemalto
Gemalto provides digital security solutions to clients of diverse industry verticals in across more than 180 countries.
The company reported revenue of €2.5 billion for the financial year ended in December 2014. The revenue from
Mobile Financial services increased by 51% in 2014.
Some of its leading customers includes Banconal, EKA, BancNet, JETCO, Etisalat, Banrisul Bank, Chunghwa Telecom
etc.
The company provides a portfolio of solutions which includes M2M, Identity & Access Management, Mobile solutions,
Transport Solutions and for the financial services & retail clients as well.
• Mobile Solution: This offering comprises of NFC & mCommerce, Connectivity & Network, Mobile Id & security and
Consumer Electronics. NFC & mCommerce solutions offering from Gemalto includes NFC portal, Mobile Payment
solutions and Mobile Marketing.
• NFC Portal: It includes Mobile Trust Net which facilitates contactless mobile payments & services and is targeted
towards the banks, retailers, mobile network operators and transport networks.
• Mobile Payment Solutions: This includes mobile payment platform and mobile wallet applications. Gemalto’s mobile
payment solution facilitates consumer-to-consumer and consumer-to-business payments. The Mobile wallet
application from Gemalto - LinqUs, enables the services provider offer payment and financial management services
to its customers.
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Gemalto (cont’d)
Gemalto’s solutions for the financial services & retail sector clients include Mobile and Apps, ebanking & Commerce,
Cards & Payments and Platforms & services.
• Mobile and Apps: It includes Mobile Banking, Mobile ID and Mobile Payment solutions. The Ezio Mobile Software
Development Kit, provides the users with benefits of secured mobile banking applications, by leveraging their
customer mobile phones as a authentication device. The Ezio Mobile Token offers enhanced security to the users by
providing them with improved authentication feaatures by generating One Time Passwords. The Ezio Mobile OOB
solution enables the users to use their smartphones & devices for accessing bank channels and digital services.
• Cards & Payments: It includes Contactless MiniTag, Contactless MicroSD, Contactless EMV cards, Card Body &
finishing and Contact EMV Cards.
• Banking payment Services: This comprises of Issuance solutions, Artowrk solutions and Post issuance solutions for the
companies.
71
F1Soft
Established in the year 2004, F1Soft provides financial services products to the leading telcos and financial services
providers. It provides its products to more than 50 corporate houses and to more than 100 banking and financial
institutions.
Some of its leading partners includes Verisign, BICS, Tranglo etc. Some of its major customers include Kumari Bank,
Gaurishankar Development Bank, PrabhuBank, Sunrise Bank, Global IME Bank, NCC Bank, Rastriya Banijya Bank etc.
Its products offering includes fonebank, transboder, fonepay and BANKex.
• fonebank: This is basically a mobile banking offering which integrates bank account, online banking software,
payment networks. The services offered through fonebank include fund transfer, bill payment, debit card integration
etc.
• transborder: This is an international remittance product offered by F1Soft. This has been deployed by more than 40
banks and companies in the country (Nepal) and provides connectivity for remittance services in across 150 countries
globally.
• fonepay: It is mobile payment system comprising of multiple services offerings like fund transfer, merchant
payments, utility bill payments.
• BANKex: This is an internet banking platform and provides the customers with services like viewing of account
summary & statements, fund transfer, bill payments, issuing cheque books etc.
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Fundamo
Fundamo is a leading provider of mobile financial services including bill payments, person-to-person payments, airtime
top-up and ticketing services. Fundamo was acquired by Visa in June 2011 for $110 million. The company is
headquartered at Cape Town in South Africa.
Some of the leading partners of Fundamo includes leading technology partners like IBM, Nihilent, TerraFive, Trivor,
Access Groups etc.
Some of its clients includes MTN South Africa, Standard Bank, Celpay, Telenor, Western Union, I&M bank, Vodafone,
bKash, First Bank Nigeria, Fortis Bank, TNM, DTAC, Monet, Aircel, Idea etc.
Services offered by Fundamo includes:
• Fundamo Enterprise Edition Mobile Money Platform: It provides the customers with accessible Demand Deposit
Transactional Account and is ideally suited for the emerging market countries which have a significant unbanked
population, despite a relatively higher mobile penetration rate. It provides the users with transactional and payment
capabilities through their mobile phones.
• Fundamo Mobile Banking: Fundamo provides services is targeted at the banks and financial institutions with mobile
banking services, which they can offer as an additional electronic channel to their existing customers to access their
accounts.
• Fundamo Mobile Wallet: Fundamo offers mobile money services providers with mobile money platform for mobile
wallet services which provides services like person-to-person transfer, bill payment, mobile airtime top-up, domestic
remittance, cash-in and cash-out services for agents.
73
mFino
Headquartered at California in United States, mFino provides an array of mobile financial services to leading clients
globally comprising of telecom operators, banking & financial institutions, distributors and retailers.
The company boasts of powering one of the largest mobile money deployment which comprises of more than 6 million
subscribers, 15,000 agents and more than 5000 merchants.
The company offers a portfolio of products comprising of E-Top Up, Mobile Money, Mobile Wallet, Mobile Banking,
Branchless Banking, Social Banking, Mobile Payments, Loyalty Management services, Location Based Services, One
Card and mFino MFS.
• E-Top Up: This service offers mobile based transaction and channel based e-top ups for the resellers and agents.
• Mobile Money: The mFino Mobile Financial Services platform provides the banked as well as unbanked customers
with a virtual account to help them in conducting financial transactions.
• Mobile Wallet: The mobile wallet solution from mFino provides both the banked and unbanked customers with
various services like doing top-ups, transfer funds to bank account or mobile wallet, make utility bill payments, m-
commerce transactions etc.
• Mobile Banking: It provides customers with the benefits of physical banking services via the online mode, whereby
customers can access, transact and receive updates related to their bank account on or via their mobile devices.
• Branchless Banking: The Branchless Banking solution offered by mFino facilitates the banking & financial institutions
to provide customers with the capabilities to access their bank accounts with their mobile phones.
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mFino (cont’d)
• Social banking: This includes services like mobile transactions (sending money to the customers) by using their phone
number or email address (or any other unique social credential).
• Mobile Payments: It enables the users to make financial transactions by using their mobile phones. Some of the key
functionalities supported by mFino Mobile payment solution includes m-commerce, Mobile as POS device (whereby
customers can use their mobile phones to accept payments) and Mobile as a Payment device (whereby customers can
use their mobile phones for making payments using RFID, NFC or QR codes).
• OneCard: mFino’s OneCard is offering from mFino, which basically replaces the requirement of multiple cards like
debit card, credit card, loyatlty cards, identiaty cards with a single card, thereby adding convenience to the user.
• mFino MFS: the mFino Mobile Financial services platform comprises of mFino Enterprise, mFino Touch, mFino Fusion,
mFino Share and mFino Sales.
75
Monitise
Founded in the year 2003, Monitise offers mobile money technology platform and solutions to diverse customer
comprising of banks & financial institutions, payment providers, retailers, mobile service providers etc.
The Mobile Money server platform offerings works in close synchronization with other elements in the mobile money
service delivery ecosystem which comprises of entities in the mobile payments and mobile commerce space, and
provides seamless handling of the back-end system of the customer and connectivity to the mobile device of the end
customers.
The company also has strategic alliances with leading technology services providers to offer and complement its
capabilities for the delivery of banking and payments solutions to the clients and users globally. Some of its leading
partners includes IBM, MasterCard, VISA, FIS, WAUSAU, Mitek Systems, Telefonica Digital, CSCU, VocaLink, Blackhawk,
RSA, CGI, BlackBerry, mBlox etc.
Some of its leading customers includes Société Générale, Virgin money, Doddle, Ziraat bank, Santander, Pegasus
Airlines, Yaap, First Gulf bank, Yapı Kredi Bank, Eurasian Bank.
The company reported a revenue of £95.1 million for the financial year ending June 2014.
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Monitise (cont’d)
The products offered by Monitise includes Monitise Vantage Platform, Offers+, Alerting+
• Monitise Vantage Platform: It provides access to banking services by providing a user interface to the customers. This
is useful for the banks offering retail banking services.
• Offers+: It provides a platform to the banking institutions for the upselling and cross-selling of their products and
services. It also provides the merchants to offer an update to the customers for providing money saving offerings and
information about discounts to the customers.
• Alerting+: This offers messaging alerts about the various transaction services being carried out by the customers, and
thereby provides an important tool for the banks to offer intelligent banking services to their customers.
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Pozitron
Pozitron offers an array of solutions comprising of mobile banking, payments and commerce solutions primarily to the
customers in Middle East countries as well as globally. Pozitron was acquired by Mobitise in February 2014 for a deal
worth $100 million, which would enable Mobitise to strengthen its positioning in the Middle East region.
Pozitron partners with leading technology and business partners, to leverage their capabilities and experience to
further enhance its existing offering and improve the value proposition of its product offers to the end users. Some of
its leading technology and solution partners includes Intel, Apple, Microsoft, Dell, Turkcell, Vodafone, Orange, IBM etc.
In addition to this, it also has Business & Marketing partners and Monitise Internship & Career Program Partners.
Some of its leading customers include eBay, GSK, ING, Sekerbank, Bank Asya, Bayer, New Media company. The leading
telecom customers for Pozitron include TurkCell, Vodafone, TTNet, AVEA etc.
The services offered by Pozitron includes Mobile Banking, Mobile Sales Force, Mobile Payments, mCommerce,
Authentication and App Connect Platform.
• Mobile banking: It leverages the Monitise Vantage Platform (MVP) to offer mobile banking services and banking
services alerts to the customers on their mobile phones.
• Mobile payments: This includes solution offering like Mobile POS, Card Reader, Wallet, P2P etc.
• mCommerce: It includes services like mobile ticketing & mobile betting (to enable the users upload funds)
• Authentication: The SoftKey solutions offerings enable the customers to leverage their mobile devices as a second
token for authentication.
• App Connect Platform: It includes mobile advertising, geofencing and location based services, notifications and
Analytics services.
• Mobile Sales Force
78
ProgressSoft
ProgressSoft offers a portfolio of solutions for mobile payments which includes mobile payments, electronic funds
transfers, signature verification and recognition, securities trading settlement and corporate banking and cash
management etc.
ProgressSoft partners with leading technology providers to offer solutions to their clients by leveraging upon their
expertise and capabilities. Some of its leading partners includes IBM, HP, Microsoft, Oracle, Cisco, Swift etc.
It counts upon Trust Bank Algeria, Bahrain Islamic Bank, BNP Paribas, Citibank, HSBC Bank, ICICI Bank, Jordan Radio
and Television. MASS Company for Artistic & Advertising Production-Yemen, Jerusalem Insurance Company, Arab Life
and Accident Insurance Company, Lebanon National Bank etc.
Some of its leading telecommunication industry clients includes SabaFon, Qatar Telecommunications Co, Orion
Communication Services, Zain – Jordan, Jordan Telecom Group – Orange.
The products offered by ProgressSoft includes Electronic Check Clearing, Mobile Payment, Automated Clearing House,
Signature Verification & recognition, Securities Tarding Settlement, Enterprise Document management, Corporate
banking & cash Management, Real-Time Gross Settlement and Electronic Funds Transfer capabilities.
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ProgressSoft (cont’d)
ProgressSoft mobile payment offering offers real time payment solutions to the banks, telecom operators, merchants
and the banked/unbanked users. Its offerings includes
• PS-mPay: which provides the users with the capabilities to make transactions (mobile payments and transfers) using
their mobile devices. Some of the services supported includes Mobile transfer, bill payments, balance enquiry and
Pin code changes.
• PS-mpClear: This is basically a real-time payment switch which processes the interbank and inter-processor mobile
payment transactions. It also facilitates in the processing and switching of mobile financial and non-financial
transactions related to inter-bank and inter-processor related payments.
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Fusion Payments
Fusion Payments provides integration platform for banking and payment services on mobile and PC channels. The
company was founded in the year 2001 and is headquartered at Sydney in Australia and has offices in Jakarta
(Indonesia), Kuala Lumpur (Malaysia), Bangkok (Thailand) and Singapore.
Some of its leading clients includes True Move, Dtac, Celcom, BCA, Telstra, Telkomsel etc.
It offers a range of products for the clients which includes-
• Direct Recharge: This enables the customers to echarge their mobile account directly by leveraging any other
connected device through registered payment equipment.
• Mobile Kiosk: It enables the telcos to offer products to their customers virtually.
• Secure Checkout: It offers the customers with a secure one-click checkout for partner mobile sites and apps, by
leveraging customer’s mobile number for identity and their handset for payment authentication.
• Mobile Authenticate: This leveraged USSD as a 2 factor authentication to facilitate remote payments by customers
using their mobile handsets.
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Tagattitude
Tagattitude specializes in mobile payments for the companies globally and it offers its TagPay platform for providing
features and benefits of mobile wallet and mobile banking services to the customers.
Has partnerships with leading organizations like PhiTrust, EMP, IBM, PWC, BNP Paribas, MobiWire, Ingenico Group.
Some of its leading clients includes nettcash, Tigo, Societe Generale, Manko, MobiPay etc.
The TagPay platform enables the telecom operators to offer services to their end users, even if they are not the direct
clients on their networks. It further supports contactless payments using its ear Sound Data Transfer technology which
helps in the mobile devices to be operated as authentication as well as payment device.
The solutions offered by the company includes Branchless Banking, Mobile Wallet and Implementation of the TagPay
platform under various business models.
• Branchless Banking: This can be implemented using the TagPay platform which enables the banks to increase their
presence in the remote areas through agents who can be trained to provide the mobile financial services offerings of
the banks.
• Mobile Wallet: This offering enables the users to make bill payments, make online purchase or transfer money to
other persons using their mobile phones.
• Implementation: This includes offering the TagPay platform to the under various business models like revenue
sharing, flat fee, license per user or any other models. The platform also has the functionality to be deployed locally
or installed on cloud-whereby TagPay can managed its operations.
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Telepin Software
Telepin Software provides infrastructure software for mobile transactions, to facilitate the mobile operators in the
delivery of mobile financial services and mobile financial applications. Telepin’s Cayman Transaction Platform offers a
suite of electronic transaction based applications for the mobile users to provide them with various services which
include person-to-person money transfers, electronic bill payments and airtime recharge services.
Some of the leading partners of Telepin Software includes Oracle, Sun Micro Systems and New Net Communication
Technologies. The leading customers of Telepin Software includes Cable & Wireless Panama, EDCH (Emirates Data
Clearing House) UAE, Etisalat Afghanistan and Digicel in Papua New Guinea.
Telepin portfolio of products comprises of
• Recharge Services: Telepin offers its payment product eTop to provide electronic recharge platform to the users,
eVoucher product to manage electronic vouchers and thus helps in voucher management services and Airtime
transfer services which enables the users to request or recharge from their peer accounts.
• Mobile Financial Services: It includes Mobile Wallet, Mobile payment, Mobile Commerce and Money Transfer services.
• Mobile Marketing: It helps the service provides in increasing the effectiveness of their promotional campaigns, by
driving the users and the merchants to use the transactional services.
• Business Management: It includes offering for the management of Distribution Network Control comprising of agents,
wholesalers, dealers and retailers.
• Technology Platform: The Telepin Transaction Platform facilitates the telecommunications and financial industries in
the processing of electronic transactions. The eTopUp and mPayment applications of Telepin can further be deployed
as well as integrated over the POS, ATM and Public Cash and Payment machines to facilitate in electronic
transactions by the users and retailers, thereby ultimately benefiting the telecom operators and merchants.
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Amdocs
Amdocs is a leading provider of OSS, BSS, professional services and managed services to global customers in across
more than 80 countries globally. Amdocs has more than 50 global implementations for its Mobile Financial services,
and serves more than 650 million users.
Some of its leading clients includes State Bank of India, BSNL, Airtel, Tigo, Digicel, Globe, true, DTac, Telenor, Digitel
etc.
Fig 41: Global clients of Amdocs & their locations
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Amdocs (cont’d)
Amdocs Mobile Wallet offers facilities to support the financial and payment requirements of the users.
The Mobile Financial Solutions offered by Amdocs includes
• Digital Commerce: This includes Direct carrier Billing, Digital Commerce Manager, Enterprise Payment Processing and
Express Top-ups services.
• Mobile Money: This provides the benefits of remittances, converged payments, loyalty & gifting and unified wallets
(for retailers) to the users.
• Micro banking: This includes micro-loans and micro-insurance.
85
Halcom
Halcom is a leading provider of mobile banking solutions, to the leading banking and financial institutions globally.
The company provides its solutions to more than 1.5million SMEs and corporate houses, more than 70 commercial
banks and 4 central banks. The company has a strong presence in the EMEA region and is present across 11 markets in
the region. The solutions offered by Halcom processes more than 130 million payments orders on a monthly basis.
The solutions offered by Halcom for the clients comprises of comprising of Inter-bank Banking, Corporate Banking, SME
Banking and Retail Banking solutions.
• Inter-Banking solutions: Halcom's ACH solution provides the clients banks to digitize their existing banking operations
and is compliant with the EPA/ISO 20022 payment standard. It additionally provides interfaces to other related
services such as AML solutions, E-Bills solutions etc.
• Corporate Banking solutions: This enables the banks with a uniform single platform for the banks and financial
institutions to provide their customers with dedicated online banking for various corporate client categories. It also
facilitates single user and multi-user workflow process during the transactions.
• SME Banking solutions: Halcom’s SME banking solutions offerings includes features such as Payroll payments,
electronic invoice presentment and payment services. Additionally, it also provides services like multi-user
authorization, cash flow tracking, analysis of the transactions done by the buyers & suppliers.
• Retail Banking solutions: The retail banking solutions offering from Halcom inludes person-to-person payments
(through leveraging QR code, Optical Character Recognition (OCR), Barcode). The Personal Finance Manager
aggregates and manages the user’s financial data in terms of spending patterns, transactions done to provide them
with decision making capabilities for their daily activities. Additionally, it also provides them with services like
SMS/email alerts services and campaign management features as well.
86
Ericsson
Ericsson offers a portfolio of m-Commerce products and solutions facilitates the services providers in connecting to
the financial network of banks & financial institutions, merchants/retailers etc for facilitating in fund transfers and
retail purchase & payments.
Offers 3 products namely, Ericsson Wallet Platform, Converged Wallet and M-Commerce Interconnect.
• Ericsson Wallet Platform- this offering enables the customers without bank accounts (unbanked customers) to
leverage their mobile devices for making transactions, sending & receiving money.
• Converged Wallet: This solution enables the customers to leverage their mobile devices for making financial
transactions (store, transfer and withdraw money) by leveraging Ericsson’s mobile payment network.
• M-Commerce Interconnect: This basically acts as a global clearing house and international remittance hub for mobile
payment services.
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9.Case Studies
Telenor Pakistan-EasyPaisa
Telenor Pakistan leverages the low banked population opportunity in Pakistan for its Mobile Financial services
offerings to strengthen its competitive positioning in the country through increased subscriber count
Overview: Pakistan in 2009 had only 15% of its adult population banked. Telenor Pakistan was the second largest mobile
services provider with a GSM subscriber base of 21 million (corresponding to market share of 22%). By virtue of being
the second largest mobile service provider, and the existing low banked population, Telenor Pakistan realized the
potential of mobile financial services in Pakistan. However, it did not have any prior experience for offering such
services, and hence it did partner with Tameer Bank in the year 2009 to launch the services.
The users needed to visit the EasyPaisa agents/outlets initially, who carried out the transactions for the visiting
customers. This also enabled Telenor Pakistan to attract the subscribers from other telcos and provided additional
benefits to their existing subscribers.
However, Telenor Pakistan launched the M-Wallet service named EasyPaisa in 2010, which provides the users with
facilities to do financial transactions on their mobile handsets. This, thus eliminated the necessity of the customers to
visit EasyPaisa agents/outlets, except for instances of deposit/withdrawl of cash from the EasyPaisa mobile account.
Fig 42: Telenor Pakistan EasyPaisa service
89
Telenor Pakistan-EasyPaisa (cont’d)
Initiatives Taken: During the initial launch period, Telenor Pakistan leveraged the 40 branches of Tameer Microfinance
Bank and also offered these services through ~30 services centres of it. This enabled it to target the existing
customers of the bank-who were well aware of the banking services and also to the existing customers who did not
have the banking services.
In order to target a larger customer base, it further engaged its 278 franchisees located across Pakistan to promote
and offer these services. These franchisees were also actively involved in the short listing, recruitment and training of
the agents. The operator with the launch of its services initially selected 2,500 agents exclusively in the area-which
lacked proper banking and financial service presence. However, owing to the increased popularity and the benefits
provided by the services, the telcos soon increased the count of agents to ~8,000 within a year.
Benefits to Telenor Pakistan: Telenor Pakistan pioneered the launch of mobile money services in Pakistan which
became extremely popular. As a result, the country witnessed few more similar launches in the country in the
subsequent years namely MobiCash, UBL Omni and TimePey.
EasyPaisa also became as one amongst the largest mobile money deployment globally, which served to more than 7.4
million unique users. These 7.4 million comprised of around 2.5 million mobile wallet users- who used the services
through their mobile phones)and ~5million subscribers-who visited the EasyPaisa agents for their transactions.
The increasing popularity of the services, resulted in the EasyPaisa having a network of 23 company-owned sales and
service centers, which comprised of more than 200 franchisees, 20,000 agents and about 100,000 retail outlets in
2014. There were around 2,500 agents when it initiated this services in 2009.
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Telenor Pakistan-EasyPaisa (cont’d)
Owing to its huge success and increased adoption amongst the customers across the entire country, EasyPaisa also
became an integral part of the two income support programs prevalent in Pakistan namely Benazir Income Support
Programme (BISP) and the Cash for Work program. Both of these programs aimed an improving the financial
empowerment fo women population in Pakistan.
EasyPaisa claimed to have processed more than 100 million transactions by 2013 in across 700 cities through more
than 20,000 merchants network, The overall transaction value also exceeded 135PKR billion by 2013.
Fig 43: Transaction value of EasyPaisa service, Fig 44: Transaction counts of EasyPaisa service,
2009-2013 2009-2013
2013 2009
2012 2010
2011 2011
2010 2012
2009 2013
0 50 100 150 0 30 60 90 120

Transaction Value (in PKR billion) Total Transactions (in millions)
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Safaricom Kenya-MPesa
M-Pesa continues to provide significant growth contribution to Safaricom’s revenues, through increased customer
loyalty and increased transaction value
Overview: The mobile operators are aggressively confronting each other to retain customers in the face of stiff price
competition from their direct competitors and preventing the revenue decline in their core voice and messaging
revenues from their indirect competitors – companies offering Web-based telephony e.g. Skype and OTT players like
WhatsApp, WeChat etc. However, M-PESA has been a success factor for Safaricom.
M-PESA was launched in March 2007, in Kenya which enabled the consumers to transfer money, for a small transaction
charge. As per the company reports, M-PESA has more than 19.3 million customers (including13.96 million customers 30
day active users) .Further, it also has 85,756 agent outlets in March 2015.
It has also introduced M-Shwari, a service which enables the user to save money using their mobile phones, on which
they can earn interest as well as access micro-loans. It had more than 5.8 million active customers (of which 3 millions
were 30 days active customers)
Fig 45: M-Pesa service offering of Safaricom
92
Safaricom Kenya-MPesa (cont’d)
Initiatives Taken: M-Pesa was launched as a joint initiative by Safaricom and Vodafone, in Kenya which enables the
consumers to transfer money, for a small transaction charge. The main reason behind M-PESA’s success is not
necessarily because Kenyan’s needed mobile banking, they needed banking.
The operators can target some of the essential services required by the consumers, and check the feasibility of the
same being delivered through the mobile mode. Safaricom enables its pre-paid and post-paid customers to purchase
data bundled services using its M-PESA services. It also provided services like International Mobile money transfers etc
Safaricom in order to expand the presence of the service, also built up and expanded its agents outlets, paybill
partners and bulk payment partners across the country.
Benefits to Safaricom: The success of M-PESA must encourage the operators to look for alternate revenue services, by
providing service that fulfils a real customer need and one that customers are prepared to pay to use.
M-PESA is only available to Safaricom customers and these customers have to be active customers on the Safaricom’s
network ((around 13.96 million customers active on a 30 day basis), i.e. if there’s no credit on the SIM card, M-PESA
doesn’t work.
Operators worldwide are facing reduced revenue growth and in a few cases decline in the revenues from their voice
and messaging services, due to a mixture of competition and, in some countries, government regulation. Increasing
the share of services other than voice and messaging is a priority for all operators. That’s what makes M-PESA more
significant to Safaricom, which accounted for almost twice the revenues from SMS services for FY-2015.
93
Safaricom Kenya-MPesa (cont’d)
The total revenue from M-Pesa reached 32.63 Kshs billion in FY2015 (a CAGR of 24.6% over 2012-2015), whereas the
overall revenues grew at CAGR of 16% over the same period to reach 156.25 Kshs billion. M-Pesa revenues to the overall
revenue also increased from 16.8% in FY2012 to reach 20.9% in FY2015.
A key contrbutor to the growth in M-Pesa revenue is the active customer base using M-Pesa service. The 20 day active M-
Pesa customers increased from 9.08 million in FY 2012 to reach 13.86 million in FY 2015.
The overall transaction value of M-Pesa also increased at a CAGR of 26.6% over 2012-2015 to reach 4.18 Kshs trillion for
FY2015.
Fig 46: M-Pesa revenue trends, 2012-2015 Fig 47: Contribution of various services to M-Pesa
revenue, 2012-2015
5 40.0% 120% 2.06 2.63 3.32 4.18
4 100%
Revenue in Kshs billion
5.1% 7.5% 10.1% 13.9%
Contribution in %
80% 29.3% 28.5% 28.0%
3 27.0%
20.0% 60%
2 33.3% 31.9% 29.5% 27.5%
40%
1 20% 32.3% 32.1% 32.4% 31.6%
0 0.0% 0%
FY2012 FY2013 FY2014 FY2015 FY2012 FY2013 FY2014 FY2015
* Financial year ending March
Deposits P2P Transfers
Withdrawls Other Deposits P2P Transfers Withdrawls Other
Fixed Service M-Pesa as % of Total Revenue
94
SK Telecom South Korea-Syrup
Smart Wallet service- Syrup enables SK Telecom to increase its competitiveness in the saturated Korean market
through a differentiated product offering
Overview: South Korean telecom market which is already boasts of very high mobile penetration poised a new
challenge to the telcos to looks for alternate revenue generating schemes in order to sustain the existing competition
from the other telcos. In order to maintain its market leadership in the South Koran market, SK Telecom introduced
NFC based Smart Wallet service in 2010. The other telcos too launched similar services in order to retaintheir existing
customers-for instance KT launched its Olleh Touch service in November 2011, LG Uplus launched Paynow in November
2013
Initiatives Taken: SK Planet, launched Smart Wallet service in 2010 which was rebranded to Syrup in the year 2014.
This service provides the customers with capabilities to store key information like data related to debit cards, members
& gift coupons etc. The service can be availed by the customer by using handsets compatible to the service. In order to
use this services, the customers needs to register their individual Government issued identification number.
SK Telecom aggressively promoted this services within the country through partnerships with retails stores and
merchants. It partnered with convenience stores and food & entertainment retailers primarily through tie-ups with
retails for mobile gift card offerings to attract the customers. Some of the leading companies of the more than 200
companies for which it partnered with for loyalty program included Korean Air, GS&Point etc-where the users could
collect as well as redeem their points.
By the year 2012, SK Telecom had extended its partnership with 50,000 retailers to offer membership services to the
customers and more than 400 brands. It also aggressively promoted NFC enables smartphones to increase the
penetration of this services and also offered this services preloaded on a significant number of its handsets offered to
the customers.
95
SK Telecom South Korea-Syrup (cont’d)
Benefits to SK Telecom: The service enabled SK Telecom to increase its customer base for the Syrup services. The
increasing number of users for this service thus enabled it to reduce customer churn and provided it with additional
revenue generating service offering.
The number of Smart Wallet subscribers reached ~10 million in June 2014.
Also, driven by increased retail partnerships and aggressive promotions, the count of subscribers using the Syrup
service reached 9 million in April 2013 from just 1million in June 2011.
The number of active subscribers using this service was 2.5 million (which accounted for ~28% of the total Syrup
subscribers) in April 2013.
Fig 48: Syrup service by SK Telecom Fig 49: Subscriber growth trend for Syrup,
June’11-Jun’13
Jun-11
Jun-12
Jun-13
0 2 4 6 8 10 12
Syrup subscribers (in millions)
96
Bharti Airtel India- Mobile Money
Bharti Airtel leads the bandwagon for mobile wallet services in India through Airtel Money in order to distinguish
itself and generate alternative revenue stream
Overview: The Indian telecom was a highly competitive

market for the telecom space with the presence of around Fig 50: Bhari Airtel’s Airtel Money offering
15 mobile operators in 2011. This hyper-competitive
scenario has led to substantial decrement in the ARPU and
profitability margins of the telcos. Airtel in order to
compensate for the declining revenue from voice owing to
competition owing to aggressive voice tariffs and decline in
VAS revenue owing to changes made in the activation
process- introduced its mobile money service- first of its
kind in India.
Airtel’s Airtel Money was launched in India in January 2011,

a mobile wallet service which was introduced by its M-
Commerce Services Limited, a wholly owned subsidiary of
Bharti Airtel and is available to its customers across more
than 300 key cities in India.
Initiatives Taken: Airtel continued to aggressively promote its Airtel Money services through active partnerships &
alliances with Government agencies, e-commerce portals, banking & financial institutions, in addition to offering this
services to its own customers. Airtel Money enables its customers to pay utility bills, transfer money, transact money,
book train tickets and also facilitated the users to purchase at more than 7000 merchant outlets.
97
Bharti Airtel India- Mobile Money (cont’d)
Some of the leading partners for Airtel Money includes Fig 51: Partners of Bhari Airtel’s Airtel Money
IRCTC- for booking railway tickets through mobile phones, offering in India
J&K Bank for offering its customers with Mobile Money
services by leveraging the 800 Khidmat centres of the bank
located across Kashmir, partnership with North Bihar
Power Distribution Company Limited (NBPDCL) which
enabled its customers to pay electricity bills through
mobile in 21 districts of Bihar for its customers.
Benefits to Bharti Airtel: Driven by aggressive promotions

and partnerships, the total number of active customers for
the service increased from 1.4 million in Q2-2014 to reach
1.7 million in Q4-2014. The total transaction value also
reached Rs 1,364 crores in Q4-2014, with average value of
transaction being Rs 359.
Table 12: Airtel Money subscriber growth trends in India
Total Value of Average Average no of Average amount
Active Customers No of Transactions
Transaction Value/Transaction transactions/custo transacted/custom
(in million) (in million)
(in Rs Crore) (Rs) mer er (Rs)
Q2-FY14 1.4 23.70 654 276 16.93 4671.4
Q3-FY14 1.3 30.50 1238 406 23.46 9525.4
Q4-FY14 1.7 38.00 1364 359 22.35 8024.7
98
MTN Africa- Mobile Money
MTN witnesses strong growth in Financial services revenues driven by growth of services like savings, lending,
insurance across countries like Uganda, Ivory Coast, Benin, Ghana
Overview: The African subcontinent is characterized by Fig 52: MTN Mobile Money offering
relatively low banking population and low mobile
penetration rate. The mobile financial services has still
immense growth potential across most of the countries, as
they are still untapped by the mobile service providers
owing to the low purchasing power which exists in most of
the countries, which has limited the mobile expansion in
these countries. Also, the banking infrastructure is either
not-available or still in the initial stages of development in a
significant geographic area, thereby providing mobile
operators to leverage this growth opportunity by offering
mobile services and also mobile banking services to
facilitate the economic growth in the region.
Initiatives Taken: MTN continues to aggressively promotes its mobile money subscriber across all the major countries of
its operation in the African subcontinent. The mobile operator continues to focus on customer acquisition through
expansion of its distribution base and also the introduction of new product which includes international remittance,
saving, lending and assurance. MTN in order to expand its rural presence in Ivory Coast had more than 3000 merchants.
MTN Mobile money witnessed increased growth in Ivory Coast in 2014 on account of aggressive promotions for airtime
and inclusion of remittance services between Ivory Coast and Burkina Faso. Similarly, the growth for Mobile Money in
Uganda was driven by inclusion of increased mobile payment product range and availability of enhanced technology
platform.
99
MTN Africa- Mobile Money (cont’d)
Benefits to MTN: The growth of MTN Mobile Money Table 13: MTN Mobile Money subscribers* in key countries
provides a huge growth potential for MTN across its
countries of operation. This provides it benefits of FY2013 FY2014
acquiring customers and gaining incremental revenues
Ivory Coast 1.5 2.6
owing to the increase in number of Mobile Money
transactions. Ghana NA 3.4
Uganda 5.2 7.3
MTN Group reported a 50.1% increase in its Mobile Money
customers over the period 2013-14 and had 22.2 million * Subscribers in millions; Financial year ending in December
users in December 2014.
MTN Mobile Money in Uganda witnessed more than 25 million transactions per month in 2013.
The countries Ivory Coast and Uganda continues to be the growth drives for MTN Mobile Money revenues which is
witnessed in terms of revenue growth for these countries as well over the past 3 year. Ivory Coast and Uganda had the
highest CAGR rates of 24.2% and 28.7% respectively over the period 2011 and 2014 .
Table 14: MTN Mobile revenue across key countries
FY-2011 FY-2012 FY-2013 FY-2014 CAGR (2011-2014)
Syria 6,463 5,391 3,229 3,449 -18.9%
South Africa 38,597 41,350 39,707 38,922 0.3%
Ghana 5,941 6,862 8,269 7,149 6.4%
Sudan 1,946 2,158 2,496 2,701 11.5%
Nigeria 34,879 38,697 48,159 53,995 15.7%
Cameroon 3,331 3,812 5,204 6,194 23.0%
Ivory Coast 3,351 4,124 5,480 6,418 24.2%
Uganda 2,481 3,296 4,467 5,289 28.7%
* Revenue in million Rands; Financial year ending in December 100
Vodacom Africa-MPesa
Vodacom M-Pesa witnesses strong growth across all major countries especially Tanzania driven by strong
customer acquisition and increased service adoption
Overview: The increased penetration of Mobile Money

service has benefitted some of the economically backward Fig 53: Vodacom M-Pesa offering
areas in the African continent through the mobile money
service provisioning. The inclusion of the large population
base under the mobile financial services has further
facilitated economic growth and increased financial
inclusion for the customers in the region. Vodacom’s M-Pesa
services since its launch, continues to witness increased
adoption across all its major operational countries including
South Africa, Tanzania, DRC etc.
Initiatives Taken: Vodacom in order to increase the adoption

of its M-Pesa service continues to introduce new services and
forging partnerships to increase its area of presence. It
included device insurance in South Africa as a part of its
Mobile Insurance service offering. It also partnered with
Commercial Bank of Africa, to introduce m-pawa, a savings
and loan based product for its mobile platform in Tanzania.
Additionally, it also introduced its International Money
Transfer service in Tanzania for its customers in FY2015.
101
Vodacom Africa-MPesa (cont’d)
Benefits to Vodacom: Vodacom continues to be benefitted by Fig 54: Vodacom M-Pesa Active Customers and
the increased adoption of the M-Pesa services across key overall ARPU, 2012-2015
countries. 14,000 50
Active Customers (in 000)

12,000
ARPU (in Rand/month)

In South Africa, M-Pesa had a total of 1 million registered 40
users and ~76,000 actively used the services. Further, its 10,000
Insurance business revenue grew by 36% in FY2015 (ended 8,000 30
March 2015), driven by increase in device insurance. 6,000 20
4,000
The total M-Pesa active customers for Vodacom (outside South 10
2,000
Africa) reached 8 million for FY2015. This corresponded to a
34.2% growth over previous year. The revenue also grew by - 0
27.5% over the previous year in FY2015. FY2012 FY2013 FY2014 FY2015
M-Pesa Active Customers ARPU
Tanzania continues to be the major growth country for M-Pesa service from Vodacom. M-Pesa revenue contributed
18.8% of the total service revenue in Tanzania in FY2014. M-Pesa contrbution to total service revenue in Tanzania was
14.1% in FY2013, 8.5% in FY2012 and 2.8% in FY2011
102
Airtel Uganda-Mobile Money
Product innovations and focus on distribution network enables Airtel Uganda to become the second largest
mobile operator in Uganda
Overview: Airtel in order to expand its operations across

Fig 55: Airtel Mobile Money Kiosk in Uganda
India, primarily focuses on the African region for offering
its mobile services. The low unbanked population and in
order to increase its subscriber base across its key
operational countries, Airtel introduced new innovative
services offering including the Mobile Money services. Airtel
launched its Mobile Money service in Uganda in February
2013. Airtel during the launch of its services planned to
invest $100 million for the provisioning of innovative
mMobile services. Airtel Money provides its customers with
an array of financial services including airtime top-ups,
send & receive money, utility bill payments, accessibility to
bank account on mobile phones and facility to withdraw
money across inter-switch ATM across Uganda.
Initiatives Taken: Airtel continues to have Airtel Money

agents to expand its presence in the rural areas. It has
more than 12,000 agents across the country. Additionally, in
April Airtel announced to deploy 537 Airtel Money Kiosks
across the country, which would enable it offer this Kiosk as
a one-stop center for Airtel services like purchase of SIM
cards, SIM registrations, data services offering and offering
consultation services for Airtel’s offering, in addition to
promoting the mobile money offering.
103
Airtel Uganda-Mobile Money (cont’d)
In order to increase the uptake of its Mobile Money Fig 56: Airtel Mobile Money App in Uganda
service, Airtel partnered with leading international and
national banks operating in the country to provide mobile
money services. Some of the banks partnering for Airtel
Money services includes Standard Chartered Bank, Post
Bank, Equity Bank, Diamond Trust Bank, United Bank of
Africa, Eco Bank and Finance Trust Bank etc.
Airtel also introduced its Android Based apps for its Mobile
Money platform, to enable the users to download the App
from the Playstore. Airtel through this App aimed at
providing better user experience to its customer as
compared to the USSD applications.
Benefits to Airtel-Uganda: The partnerships, focus on the

distribution network and increased focus on customer Table 15: Mobile Money subscribers for various
experience through innovative service launches, enabled operators in Uganda, 2015
Airtel to become the second largest mobile operator in Mobile Operator Mobile Mobile Money
terms of overall subscriber base as well as mobile money Subscribers Subscribers
subscriber base, behind MTN-Uganda. Airtel Uganda had MTN Mobile Money 10.4 7.3
7.5 million subscribers and 3.4 million mobile money
subscribers in 2015 Airtel Money 7.5 3.4
Uganda Telecom M-Sente 2 1.3
Airtel Uganda was awarded as the “Best Brand of the
Orange Money 0.6 0.5
year 2014‟ at the Annual Social Media Awards 2015, for
using social media for change and engagements and
talking to customers online.
104
Telenor Pakisatan- EasyPaisa Khushal Beema
Khushal Beema drives insurance services in Pakistan for Telenor
Overview: Pakistan is amongst one of the countries in the Asia-Pacific region which has a relatively very low insurance
penetration rate. Despite the presence of a few major insurance companies in the country, the major challenge of
these companies was to expand their services and to reach maximum number of users, primarily those at the bottom
of the pyramid and providing/educating them of the benefits of insurance services. Telenor Pakistan’s EasyPaisa
offering partnered with Adamjee Life Insurance to offer Khushaal Bema, an insurance service to the customers of
Telenor Pakistan based on the average monthly mobile account balance maintained by them.
Fig 57: Telenor Pakistan- EasyPaisa Khushal Beema service offering
105
Telenor Pakisatan- EasyPaisa Khushal Beema (cont’d)
Initiatives Taken: In order to drive the adoption of the Table 16: Telenor Pakisatan- EasyPaisa Khushal Beema
insurance service offering, EasyPaisa offered its customers service offering details
with Life & Accidental Death Insurance of upto Rs 1million.
For these, these customer must have to maintain an Sum Assured
average savings of Rs 2000 and above in the mobile Mobile Natural
accounts. Accidental Death
Account Death
Average
Customers having savings of Rs 2,000 or more in the Mobile Monthly
Monthly Lump Sum Lump Sum
Accounts with Life & Accidental Death Insurance of upto Rs Amount (Rs.
Balance (Rs.) (Rs.) (Rs.)
1million. Khushal Beema was amongst the first of its kind pm)
offering, which provided the customers with micro-
insurance product. 2,000 to 5,000 50,000 100,000 N/A
5,001 to
The insurance pays out Rs. 50,000 for a natural death and 100,000 200,000 N/A
10,000
Rs. 100,000 for an accidental death. By keeping a higher 10,001 to
balance in the Mobile Account, the customer can avail 250,000 500,000 N/A
25,000
higher pay outs. 5,000 Per
Above 25,000 500,000 1,000,000 Month for 5
Benefits to Telenor Pakistan: EasyPaisa claimed 20% of the Years
customers (total customer-250,000) maintained the
required average minimal balance in a particular month.
The services processed total of 24 claims and had paid out
PKR2.5 million in total.
106
Telesom Somaliland- Zaad
Zaad enables Telesom Somaliland to empower the rural with the mobile banking capabilities
Overview: Somaliland was the country which like other

countries in the African region had a healthy mobile Fig 58: Zaad Mobile money transfer service
penetration rate, with mobile penetration being 40% of the
population in the year 2009. One of the major problems
being faced by the people was the availability of
cumbersome shilling system. The highest banknote present
in the country was 5,000 Shilling note which at that time
was having a valuation of even less than a dollar, which
made conducting transaction in the country relatively
impractical. As a result, in most of the places Khat (a
flowering plant) was used as currency.
Telesom, the largest mobile operator in Somaliland

introduced Zaad, a mobile money transfer service in the
year 2009.
Initiatives Taken: Zaad- when it was launched in the year 2009 offered services like livestock trade, payment of
utility bills (like electricity bills), facilitating payments (like payment of university fees etc), Domestic/inter-
network/international money transfer, P2B purchases, B2B transactions, airtime & internet data recharge.
When the telecommunications company Telesom introduced mobile banking to Somaliland in 2009, the effort was met
with little distrust. In order to overcome this, Telesom paid salaries to its employees for the first 2 months via Zaad
before officially launching the service in the country. The operator aggressively promoted its services across major
cities through campaigns and slogan stating “Transfer, Save, Buy”. In some of the rural towns like Zeila, Zaad spread
mostly by word of mouth. 107
Telesom Somaliland- Zaad (cont’d)
In order to expand its presence, Telesom leveraged its own retail stores to register new customer to offer cash-in and
cash-out services. These were around 178 in number spread across the country and 20 largest stores (called as dealers
by Telesom) was responsible for managing the liquidity of the smaller stores.
The dealers were also actively involved in the recruitment of agents and also such dealers who also supervised small
stores were considered Telesom employees and were given monthly salary from Telesom.
Telesom also imparted training to its Zaad staff when recruited and also a refresher training was provided post the
completion of one year. It also educated the merchants and employers about the product and provided them with
usage incentives as well.
Telesom mainatained a strong focus on the ecosystem and linkages with other key financial service stakeholders,
which included money changers and mobile money services present in the neighboring countries.
Benefits to Telesom Somaliland: In April 2013, Zaad had 368,000 customers. Out of these 59% of the customers had
an average balance of $37 in their accounts. It had 8,600 merchants out of which 83% had a balance of $352 in their
accounts.
108
Econet Wireless Zimbawbe- Ecocash
Ecocash continues to witness strong growth in Zimbawbe
Overview: Econet realized that people had lost trust in

Zimbabwe’s banking institutions due to the hyperinflation Fig 59: EcoCash offering in Zimbawbe
crisis and recognized that there was a role for a prominent
MNO to play in the mobile money market.
Econet Wireless launched EcoCash, in September 2011 in

Zimbawbe to offer mobile money transfer services. The
services provided include EcoCashSave (a banking service to
its subscribers in partnership with Steward Bank), Online
Bill Payments (to facilitate real-time transaction processing
for financial transactions), EcoCash App (an application
available to its Android users for making ecoCash .
Initiatives Taken: Econet relies on its strong agent network

for the promotion of its services. Also, the pricing model
whereby it provides incentives to its agent network and
distributors also acts as its key differentiator with other
competitors in the country.
New product offerings like the EcoCash debit card further

acts as a key differentiator and is driving increased
adoption.
109
Econet Wireless Zimbawbe- Ecocash (cont’d)
Benefits to Econet Wireless: EcoCash was launched, the number of people the mobile money service has impacted
has now reached over four million. In total, over US$4.5 billion has been transacted since 2011. Registered users
increased by over 2.5 million to over 3.5 million during the period.
Table 17: Key KPIs of EcoCash service in Zimbawbe, Feb’13-Feb’15
Period Customers Transaction Value Revenue Contribution

(in million) (in USD billion) (in %)
Feb-13 2.1 0.7 1
Feb-14 3.5 3.1 5
Feb-15 4.2 5.5 8
* Financial year ending February
110
10.Key Findings
Key Findings
• Mobile Money services is witnessing increased deployments across the countries. The number of mobile money
deployments has reached 255 in 2014 as compared to just 4 in the year 2004.
• As per survey conducted by WiseStrokes, more than 30% of the users mobile phones to make payments in 2015 (as
payment options at more than 20% of the instances).
• WiseStrokes survey finding states of 47% of the telcos offered mobile money services in 1-5 countries, whereas 25 of
the telcos offered these services in 5-10 countries. 29% of the telcos offered services in 10 or more countries. 83% of
the telcos who responded plans to offer mobile money services within one year.
• Security concerns like data privacy issues, online threats etc is the prime concern amongst the people-which is
hindering the adoption of mobile money service.
• Mobile money services helps the telcos in reducing the cost involved in the delivery chain for facilitating the delivery
of services.
• Mobile telcos in addition to the mobile money services are also offering the customers with additional services like
Mobile insurance, mobile ticketing etc- thereby providing them with an alternative revenue generation steam.
• Increase in mobile broadband penetration, availability of mobile internet, affordable smartphones, favorable
Government regulations and technological advancements will further accelerate the adoption of mobile money
services in the near future.
112
Appendix
List of Mobile Money service across key regions
Service
Service Type- Service Type- Service Type-
Region Country Service Name Type-Mobile
Mobile Money Mobile Insurance Mobile Saving
Credit
Latam & Caribbean Argentina Sicom Y Y
Latam & Caribbean Bolivia Tigo (Millicom) Y
Latam & Caribbean Brazil Vivo (Telefónica) Y
Latam & Caribbean Brazil Oi Y
Latam & Caribbean Colombia DaviPlata Y
Latam & Caribbean Colombia

BanColombia Y
Latam & Caribbean Dominican

Orange Y
Republic
Latam & Caribbean El Salvador Tigo (Millicom) Y
Latam & Caribbean Y

Guatemala Tigo (Millicom)
Latam & Caribbean GuYana Telephone

GuYana and Telegraph Y
CompanY
Latam & Caribbean Haiti Digicel Y
Latam & Caribbean Haiti HaitipaY Y
Latam & Caribbean Honduras Tigo (Millicom) Y Y

Source: GSMA
114
List of Mobile Money service across key regions (cont’d)
Service
Credit
Latam & Caribbean Mexico eZuza Y
Latam & Caribbean Telcel (América

Mexico Y
Móvil)
Latam & Caribbean ParaguaY Tigo (Millicom) Y Y Y
Asia-Pacific Cambodia WING Y
Asia-Pacific Indonesia BTPN Y
Asia-Pacific Indonesia Indosat (Ooredoo) Y
Asia-Pacific Indonesia XL (Axiata) Y
Asia-Pacific MalaYsia Maxis Y
Asia-Pacific Papua New Nationwide

Y Y Y
Guinea Microbank
Asia-Pacific Philippines Smart (PLDT) Y
Asia-Pacific Solomon
ANZ Bank Y Y
Islands
Asia-Pacific Thailand AIS Y
Asia-Pacific True Move (True

Thailand Y
Corporation)
Asia-Pacific Vietnam M_Service Y
Source: GSMA 115

Service
Credit
Asia-Pacific Afghanistan Roshan (TDCA) Y
Asia-Pacific Afghanistan Afghan Wireless

Y
(TCI)
Asia-Pacific Bangladesh Robi (Axiata) Y
Asia-Pacific Bangladesh bKash Y
Asia-Pacific Bangladesh Trust Bank Y
Asia-Pacific Bangladesh Bank Asia Y
Asia-Pacific Grameenphone
Bangladesh Y Y
(Telenor)
Asia-Pacific Afghanistan Roshan (TDCA) Y
Asia-Pacific Afghanistan Afghan Wireless

Y
(TCI)
Asia-Pacific Bangladesh Robi (Axiata) Y
Asia-Pacific Bangladesh bKash Y
Asia-Pacific Bangladesh Bank Asia Y
Asia-Pacific Grameenphone
Bangladesh Y Y
(Telenor)
Asia-Pacific Bangladesh Dutch-Bangla Bank Y
Source: GSMA 116

Service
Credit
Asia-Pacific India Aircel (Maxis) Y
Asia-Pacific India Oxigen Y
Asia-Pacific MY Mobile
India Y
PaYments
Asia-Pacific India Vodafone Y
Asia-Pacific India Eko Y Y
Asia-Pacific Nepal FonePaY Y
Asia-Pacific Pakistan Ufone (PTCL) Y
Asia-Pacific Pakistan Habib Bank Limited Y
Asia-Pacific Pakistan UBL Bank Y Y Y
Asia-Pacific Pakistan Telenor Y Y Y
Asia-Pacific Mobilink (Global

Pakistan Y Y
Telecom)
Asia-Pacific Mobitel (Sri Lanka
Sri Lanka Y
Telecom)
Asia-Pacific Sri Lanka
Dialog (Axiata) Y Y
Source: GSMA
117
Service
Credit
Middle East & Africa Egypt Vodafone Y
Middle East & Africa Iran MCI (TCI) Y
Middle East & Africa Jordan Zain Y
Middle East & Africa Qatar Ooredoo Y
Middle East & Africa Tunisia Ooredoo Y
Middle East & Africa Tunisia Viamobile Y
Middle East & Africa Benin Moov (Etisalat) Y Y
Middle East & Africa Benin MTN Y
Middle East & Africa Botswana FNB Y
Middle East & Africa Botswana Orange Y
Middle East & Africa Burkina Faso Airtel (Bharti Airtel) Y Y
Middle East & Africa Burundi U-Com (Orascom) Y
Middle East & Africa Cameroon AfrikpaY Y
Middle East & Africa Cameroon MTN Y
Middle East & Africa Cameroon Orange Y

Source: GSMA
118
Service
Credit
Middle East & Africa Chad Airtel (Bharti Airtel) Y

Chad
Middle East & Africa Tigo (Millicom) Y
Middle East & Africa Congo MTN Y

Congo
Middle East & Africa Airtel (Bharti Airtel) Y
Democratic
Middle East & Africa Republic Tigo (Millicom) Y
of the Congo
Middle East & Africa “ Airtel (Bharti Airtel) Y
Middle East & Africa “ Vodacom Y
Middle East & Africa Côte d’Ivoire Qash Services Y

Côte d’Ivoire
Middle East & Africa Orange Y
Côte d’Ivoire
Middle East & Africa Moov (Etisalat) Y
MOSS ICT
Middle East & Africa Ethiopia Y
ConsultancY
Middle East & Africa Gabon Airtel (Bharti Airtel) Y
Middle East & Africa Ghana Tigo (Millicom) Y Y
Source: GSMA 119

Service
Credit
Middle East & Africa Ghana Airtel (Bharti Airtel) Y Y
Middle East & Africa Ghana MTN Y
Middle East & Africa Ghana Afric Xpress Y
Middle East & Africa Guinea MTN Y
Guinea
Middle East & Africa Orange (Sonatel) Y
Middle East & Africa Kenya Changamka Y
Middle East & Africa Kenya Airtel (Bharti Airtel) Y Y

Commercial Bank of
Middle East & Africa Kenya Y Y
Africa
Middle East & Africa Kenya M-Changa Y
Middle East & Africa Kenya Safaricom Y

CenturY
Middle East & Africa Kenya Y
Microfinance Bank
Middle East & Africa Lesotho FNB Y
Middle East & Africa Liberia Lonestar (MTN) Y

Source: GSMA
120
Service
Credit
Middle East & Africa Madagascar Airtel (Bharti Airtel) Y
Middle East & Africa Madagascar Orange Y
Middle East & Africa Malawi TNM Y Y
Middle East & Africa Malawi Airtel (Bharti Airtel) Y
Middle East & Africa Mali Orange (Sonatel) Y
Middle East & Africa Mauritius Emtel (Millicom) Y
Middle East & Africa Mozambique Vodacom Y
Middle East & Africa Namibia FNB Y
Middle East & Africa Niger Airtel (Bharti Airtel) Y
Middle East & Africa Nigeria MTN Y
Middle East & Africa Nigeria TeasY Mobile Y
Middle East & Africa Rwanda MTN Y
Middle East & Africa Rwanda Tigo (Millicom) Y
Middle East & Africa Rwanda Airtel (Bharti Airtel) Y

Source: GSMA
121
Service
Credit
Middle East & Africa Senegal Tigo (Millicom) Y
Middle East & Africa Senegal Orange (Sonatel) Y
Middle East & Africa Senegal Société Générale Y
Middle East & Africa Sierra Leone Airtel (Bharti Airtel) Y

Telesom,
Middle East & Africa Somalia Y
Somaliland
Middle East & Africa South Africa FNB Y
South Africa
Middle East & Africa Vodacom Y Y
Middle East & Africa Swaziland FNB Y
Middle East & Africa Swaziland MTN Y Y
Middle East & Africa Tanzania Tigo (Millicom) Y Y
Middle East & Africa Tanzania Vodacom Y Y Y Y
Middle East & Africa Tanzania Airtel (Bharti Airtel) Y
Middle East & Africa Togo Moov (Etisalat) Y
Middle East & Africa Uganda EzeeMoneY Y
Middle East & Africa Uganda MTN Y Y

Source: GSMA 122
Service Type- Service Type- Service Service Type-

Region Country Service Name Mobile Money Mobile Insurance Type-Mobile Mobile Saving
Credit
Middle East & Africa Uganda Airtel (Bharti Airtel) Y
Middle East & Africa Zambia Zoona Y Y
Middle East & Africa Zambia FNB Y
Middle East & Africa Zambia Airtel (Bharti Airtel) Y Y

Telecel (Global
Middle East & Africa Zimbabwe Y
Telecom)
Middle East & Africa Zimbabwe Econet Wireless Y Y Y
Europe Mongolia MobiCom Y
Europe Romania Vodafone Y
Europe Turkey Turkcell Y

Source: GSMA
123
Mobile Phone usage as bill payments
Point of sale
Automated teller Commercial bank Mobile
(POS)
Machines (ATMs) branches Credit card Debit card phone used
Country terminals
(per 100,000 (per 100,000 (% age 15+) (% age 15+) to pay bills
(per 100,000
adults) adults) (% age 15+)
adults)
Korea 18.8 56.4 57.9
Hong Kong 49.6 23.8 6,257.5 58.1 75.8
Singapore 60.2 10.2 1,989.4 37.3 28.6 9.8
Japan 129.0 34.0 1,560.7 64.4 13.0
Thailand 77.9 11.3 456.1 4.5 43.1 0.5
Brazil 119.6 46.2 2,379.5 29.2 41.2 1.3
Zambia 60.0 10.7 689.3 7.8 45.3 4.4
Myanmar 56.4 10.5 829.0 11.9 23.1 2.4
South Africa 61.5 8.7 445.4 16.9 42.3 15.0
Philippines 17.7 8.1 3.2 13.2 2.1
India 8.9 10.6 58.2 1.8 8.4 2.2
Nigeria 12.0 6.4 0.8 18.6 1.4
Uganda 3.8 2.4 2.3 1.6 10.3 3.3
Ghana 4.1 5.5 2.2 11.4 0.9
Equatorial 67.4 1.4 5.1 0.4
Guinea
“- “Indicates data not available Source: World Bank, 2012 124

Financial inclusion v/s mobile money usage comparison
Share with an Country Share with an Adults using

account Adults using account Mobile money in
Country at a formal financial Mobile money in at a formal financial the past year
Institution the past year Institution
(All Adults %) (All Adults %)
Benin 10 0 Mali 8 1
Botswana 30 9 Mauritius 80 9
Burkina Faso 13 1 Mozambique 40 3
Burundi 7 5 Niger 2 3
Cameroon 15 10 Nigeria 30 13
Chad 9 18 Rwanda 33 4
Congo 9 37 Senegal 6 1
DRC 4 2 Sierra Leone 15 2
Gabon 19 50 Somalia 31 34
Ghana 29 2 South Africa 54 11
Guinea 4 7 Swaziland 29 20
Kenya 42 68 Tanzania 17 23
Lesotho 18 7 Togo 10 1
Liberia 19 19 Uganda 20 27
Madagascar 6 1 Zambia 21 5
Malawi 17 1 Zimbabwe 40 4
Source: Standard Chartered, September 2014 Source: Standard Chartered, September 2014 125
Financial inclusion v/s mobile money usage comparison (cont’d)
Share with an Country Share with an Adults using

account Adults using account Mobile money in
Country at a formal financial Mobile money in at a formal financial the past year
Institution the past year Institution
(All Adults %) (All Adults %)
Argentina 33 1 Cambodia 4 1
Bolivia 28 9 Indonesia 20 1
Brazil 56 1 Malaysia 66 3
Colombia 30 3 Philippines 27 15
Dominican 38 8 Thailand 73 3
Republic
Vietnam 21 7
El Salvador 14 1
Afghanistan 9 7
Guatemala 22 4
Bangladesh 40 3
Haiti 22 15
India 35 4
Honduras 21 3
Nepal 25 0
Mexico 27 6
Pakistan 10 3
Paraguay 22 7
Sri Lanka 69 3
Source: Standard Chartered, September 2014
Source: Standard Chartered, September 2014
126
Companies mentioned in the report
Telenor Pakistan Telepin Software
Osaifu-Keitai Amdocs
Mahindra Comviva Halcom
eServGlobal Ericsson
Gemalto Telenor Pakistan
F1Soft Safaricom Kenya
Fundamo SK Telecom
mFino Bharti Airtel India
Monitise MTN
Pozitron Vodacom
ProgressSoft Airtel Uganda
Fusion Payments Telesom Somaliland
Tagattitude Econet Wireless Zimbawbe
127
Disclaimer
Please note that the author does not necessarily own each component of the content included in the
work and the findings, forecasts and conclusions expressed in this work are as based on the data
obtained through secondary research. The facts/data of this report is believed to be correct at the
time of publication, but cannot be guaranteed. Also, the findings and conclusions are based on
primary and secondary resources, and hence the accuracy of the same cannot be guaranteed. Though
utmost care has been taken while calculating the statistical data, any error in the same would not be
the responsibility of the author. The author/publisher accepts no liability for the actions taken,
which is based on the information, which may subsequently be revised/or prove to be incorrect.
128

Global Mobile Money Services Report

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Global Mobile Money Services-2015

Extending the banking capabilities to the unbanked globally

• Current State of Mobile Money……………………………………………………………………………………………………………………………………………………………………………………………….15

• Mobile Payment Services Ecosystem……………………………………………………………………………………………………………………………………………………………………………………..20

• Drivers & inhibitors………………………………………………………………………………………………………………………………………………………………………………………………………………….33

• Building Blocks and Key KPIs………………………………………………………………………………………………………………………………………………………………………………………………….45

• Business Models for Mobile Money………………………………………………………………………………………………………………………………………………………………………………………..53

• Mobile Payment Platform Vendors……………………………………………………………………………………………………………………………………………………………………………………….63

— List of Mobile Money service across key regions

Fig 1: Global Mobile Money deployments, 2004-2014

Fig 2: Mobile Money deployments across key regions, 2014

Sub-Sharan Africa 81%

South Asia 75%

Latin America & Carribean 65%

East Asia & Pacific 63%

Middle East & North Africa 46%

Europe & Central Asia 14%

Fig 3: Number of Mobile Money deployments globally across regions, 2014

Source: GSMA, 2014

Fig 4: Major Types of Mobile Money Services

Conversion & Money

Table 2: Mobile Financial Services- Key services Offered

• Mobile Payment services continue to evolve from being a

• Initially, mobile financial transactions involved only the

• With the increasing efforts of mobile operators globally

Mobile Money Accounts

Sub-Saharan region had 42.4% million active mobile money 22

• The key components like Mobile Operators,

• All these entities will have to proactively estimate the

Fig 15: Mobile Financial Services usage concern of users, 2015

Chances of Fraud 10% 12% 16% 25% 37%

Privacy Issues 0% 9% 15% 76%

0% 20% 40% 60% 80% 100%

1-5 countries 5-10 countries More than 10 countries

Within 1 year Between 1-2 years

Important Very Important Disagree Agree

Increasing smartphone penetration

Fig 21: Factor hindering the adoption of Mobile Financial Services

Security Concerns (like data privacy/online threats etc)

35% Customers still prefer the traditional mode of payment

• Market: The service can be used to target various Infrastructure

• Fraud still remains a key area of concern:

• Security issues still concerns the telcos and device vendors:

Rules and Regulations must support mobile money

• Dynamic Business Models estimated to emerge:

Mobile financial services is expected to witness growth in the following areas

Easy to use interface: Telcos must focus on providing easy and

Sales & Distribution network: The telcos must forge active

Attractive product offering to target mass set of customers:

Key Resources for service

Cost to the Mobile Operator

Vertical Key Functions to be performed

Vertical Key Functions to be performed

customers about the value proposition of the Mobile

Fig 30: Operator centric Mobile Money Business model

Retailer Mobile Bank

Mobile Bank Payment

Fig 33: Smart Money mobile banking services in Philippines

Fig 36: Over-the-counter distribution based Mobile Money Business model

Check whether the

Fig 39: Uses of Osaifu-Keitai

Fig 40: Location of Mahindra Comviva customers

The solutions offered by eServGlobal includes

Services offered by Fundamo includes: