Mobile Technology As The New Revolution In
Mobile ICT For A Cash-less Society
MOBITEL
MOBILE
MONEY
Presented by Kalhara Gamage
Head of Mobile Money
Mobitel Pvt Ltd
How Money Evolved…
Risk of carrying and loss due to theft
Convenience oriented society
Evolution of “hard” currency into “soft” currency
Mobitel Mobile Money
Problems Of Physical Cash
No to “Cash” but “Yes” for Money !!
Natural
Resources
Depletion
Cash handling
costs
Theft
Transaction
costs
Mobitel Mobile Money
Global Mobile Market
Internet Penetration
80%
Singapore
Internet Penetration %
70%
Global Mobile Connections
Malaysia
60%
World
50%
Thailand
40%
Sri Lanka
30%
South Asia
20%
Indonesia
India
10%
Pakistan
0%
199019921994199619982000200220042006200820102012
9.2 Bn
6.7 Bn
LTE/HSPA/
GSM
HSPA/GS
M
GSM only
Mobitel Mobile Money
Bangladesh
Sri Lanka – Facts
Demographic Distribution
Indicator
As at
31/12/2013
Population
20.5 Million
GDP per capita
USD 3,280
Literacy rate
95.6% (2012)
ICT Literacy
40%
Number of Households
Households with Electricity
Mobitel Mobile Money
4.927Mn
96.0%
Source: CBSL, Nielsen, Ministry of Finance & planning
Sri Lanka Mobile Market
Millions
Industry Subscribers
25
Internet Penetration
30
20
25
15
20
15
10
10
5
5
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Subscribers
Adjusted (Multiple SIM usage)
Indicator (2013)
Value
Internet Penetration %
22%
3G connection %
13%
Single SIM Users = 79%
Smart phone penetration %
16%
Multi SIM Users = 21%
Mobile social media penetration %
6.6%
Source: Mobitel Estimates, Nielsen, Q2 2014
Mobitel Mobile Money
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014 E
0
0
Mobile Vs Banking Penetration
Mobitel Mobile Money
Cash – Less Modes
SMS Banking/ USSD Banking / Mobile Banking
Plastic Cards
Mobile Money
NFC Solutions / Stored Value
Mobitel Mobile Money
Mobile Banking…
SMS / USSD Banking
•
•
•
•
•
Initial form of banking transactions
Linked with Bank account
Limited access
Limited functionality
Slow roll out due to complicated
registration processes
Mobile Banking Solution / Internet
Banking
•
•
•
•
•
Mobitel Mobile Money
Convenient and rich UI
Bank Account Transfers
Bill Payments
Account Statements
Balance Inquiries
NFC Solutions.. / Stored Value
Near field communication (NFC) - is a set of standards for smartphones and
similar devices to establish radio communication with each other by
touching them together or bringing them into proximity, typically a distance
of 10 cm (3.9 in) or less.
• Disconnected transactions
• Payment authentications
• Close proximity fund transfers
• Ticket Bookings
• Parking ticket payments
• POS Payments
Mobitel Mobile Money
Common Uses of Mobile Financial Solutions
Mobitel Mobile Money
What Is Mobile Money
Digitized money
Cash-less Operation
Operator-led model
Virtual bank account in the mobile phone
Mobitel Mobile Money
Mobile Money Deployments
•
200 Mobile Money for the Unbanked services live deployments
• 113 planned deployments
Source – GSMA
Mobitel Mobile Money
World Trend For Mobile Money - 2013
3 Billion USD
Volumes by
end of 2016
Mobitel Mobile Money
World Trend For Mobile Money - 2013
203 million registered mobile money accounts– 61 million active worldwide
Nine markets already registered mobile money accounts than bank accounts
(Cameroon, the Democratic Republic of Congo, Gabon, Kenya, Madagascar, Tanzania, Uganda, Zambia and Zimbabwe)
900,000 Agent Outlets – 48% Active
20,000 Companies use Mobile Money to make / accept payments
Mobitel Mobile Money
Virtual Wallet Concept
“Virtual Wallet”
Virtual Wallet is attached to Mobile Number
Virtual Wallet can
a. store physical money in electronic form
b. use for payments in the same form
c. convert to liquid form when required
Mobitel Mobile Money
How Mobile Money Work
Mobitel Mobile Money
Enablers of Mobile Money
• Conducive Environment
Substantial mobile penetration
Increasing ICT knowledgeable population
Strong demand for domestic fund transfers
• Shift in customer preference for convenience
• Reach difficulties for financial services
Spread of locations and working hour restrictions
• Less / no medium available for short term storage of funds
Banks discourage low balances
• Low service quality of existing alternatives
Mobitel Mobile Money
Significance Of Mobile Money
Financial Access 2009 Report "Half the World is Unbanked"
• Mobile Platform extended for financial services
• Competitive advantage over Traditional Money Systems and other
MNOs.
• Reduces unbanked and under-banked population
• Usage based revenue model –profitable
• Low cost transaction model
• Expansion of payment and cash receipt possibilities
Mobitel Mobile Money
Future of Money ……
Mobitel Mobile Money
Launch Of mCash
Mobitel Mobile Money
mCash Platform
Transactions
Bill Payments
Statements
Transactions
Bill Payments
Statements
CUSTOMER
ACTIVITIES
AGENT ACTIVITIES
Customer Registrations
mCash Distribution
Liquidity management
MOBILE
MONEY CORE
SYSTEM
Transactions Reports
Statements
Regulatory Reports
Reconciliation Reports
Business Intelligence
Mobitel Mobile Money
BUSINESS
REPORTS
MNO ACTIVITIES
Platform & Eco-System
Manage Regulations
CRM & Customer Care
Distribution & Liquidity
Enterprise Risk Management
Innovations & Value Addition
Integrations With mCash Platform
WEB COMMUNICATION / HTTPS
CUSTOMER
mCash Platform
BANK ACCOUNT INTERFACE
ATMS/KIOSKS INTERFACE
INTERNET PAYMENT GATEWAY
INTERFACE
MERCHANT INTERFACE
NFC INTERFACE
MOBILE APP INTERFACE
ADDITIONAL CUSTOMIZED INTERFACES
Mobitel Mobile Money
mCash ECO System
Mobitel Mobile Money
Possible Future mCash Deployments
Enable G2C & C2G Payments
M-Commerce Payments
Payroll Management
Inward Remittances
Mobitel Mobile Money
mCash Benefits To Partners…
Mobitel Mobile Money
•
Reduction of Overheads and other operational costs
•
Additional revenue channel
•
Distribution Network
•
Real-time Payments, 24 X 7 operation
•
More reach, Co-branding and market communication
opportunities
•
Safe & Secure
•
Regulatory Support