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eServGlobal Solutions Presentation
Solutions Presentation
2eServGlobal Proprietary and Confidential
Mobile Network Operators’ Mobile Money ObjectivesMobile Network Operators want to offer mobile users “mobile financial services” via handsets to increase ARPU from user service charges (SMS, internet access, etc), transaction charges (clip the ticket) and interest on deposits (funds held).
To do this they know that they need to simplify, extend, and reduce the cost of their “cash in” channels. So it is firstly about increasing (as cheaply as possible) the held balance (via prepaid funds) on the mobile users’ phone accounts.
“History has shown that users with credit balances use it”
Secondly the operators want to simplify and extend the number of ways users can reduce the “held balance” on their mobiles
• In the banked world the funds are generally deposited via the banking system.
• In the unbanked world the funds are deposited via cash
• In the banked world via m-commerce, mobile payments, international remittance (send), near field communications ….
• In the unbanked world via m-wallets, domestic airtime transfer, international remittance (receive), funds disbursement (salaries, microfinance, aid) ……
3eServGlobal Proprietary and Confidential
Greenwich Consulting’s Mobile Money view
eServGlobal Proprietary and Confidential 4
Telecom Software Landscape
Low Value Commodities
Mar
ket
Gro
wth
Value of Solution
StarsMobile Money
Promotions/Loyalty
Voucher Management
Unknown Territory
e-Recharge
Sources: Gartner, 2009, ,2010; Juniper, 2009, 2010; McKinsey, 2010
M-Advertising
Billing Services
Network Control
Infrastructure
Number Portability
eServGlobal Proprietary and Confidential 5
24 years’ experience
in Mobile Payments, Value-Added Services, and
subscriber Promotions
60+ telecom customers
worldwide
eServGlobal Strategy
Focused on Mobile Money for the Unbanked while providing Mobile Money, Recharge and Promotion solutions to Mobile Network Operators (MNO’s)
eServGlobal Proprietary and Confidential 6
eServGlobal Products & Services
Any account to any account Mobile Money, recharge, & remittance
Value-added services that enable
MNO’s to engage their subscribers in a
personalised way 24 Years of enabling telcos to…
Grow revenue, Gain & retain customers, Enter new marketsGrow revenue, Gain & retain customers, Enter new markets
Mobile Money
8eServGlobal Proprietary and Confidential
Mobile Money Landscape
Unknown Territory
Low Value Commodities
Mar
ket
Gro
wth
Value of Solution
Stars
Mobile Banking
m-Int’l Remittance
Domestic Money Transfer
Bank Int’l Remittance
Money Transfer Operators
Sources: Greenwich Consulting, June 2010; Informa, 2009
Local Payments
eServGlobal
Remote Payments
e-Recharge
m-Wallets
Premium SMS
eServGlobal Proprietary and Confidential 9
Mobile Money
By 2012, Mobile Money is projected to generate USD $5B in direct revenue and USD $3B in indirect revenue per year McKinsey, February 2010
Mobile money creates loyalty & drives new revenue streams for operators and banks
TotalPopulation
Banking penetration in developing markets1
BankedUnbanked
100%Untapped, high growth market
USD $860B market in m-payments and m-
banking worldwide2
1. Est. 72% of the adult population in developing countries, and 19% in developed markets are banked. Financial Access, 2009 CGAP.2. Informa forecasts mobile payments and mobile banking transactions to represent USD $860 B in 2013. Informa, 2009.
10eServGlobal Proprietary and Confidential
M
600 M
1,200 M
FY09 FY10 FY11 FY12 FY13 FY14 FY15
Pay
Mob
ile E
nd-U
sers
Pursuing emerging, high-growth e-recharge and Mobile Money markets
Targeting our 23 existing recharge customers to upgrade to m-wallets
Our Mobile Money Strategy
Payments (Recharge + Vouchers)
M-Wallets
Estimated PayMobile End UsersBased on existing PayMobile customers, pipeline, and operator growth metrics1
Electronic recharge is replacing vouchers
M-wallets are accretive.
Increasing footprint with enhanced Nokia Siemens Networks (NSN) partnership
New Reseller agreement for m-wallets with Belgacom International Carrier Service (BICS)
Now targeting Banks, Money Transfer Organizations (MTO’s), and other financial institutions
1. Informa Operator Database (WCIS), 2010; PayMobile pipleline. Subject to regulatory constraints and materialization of pipeline.
eServGlobal Proprietary and Confidential 11
Impact on MNO’s due to Mobile Money
0%
1%
2%
3%
4%
~6x lower
Mon
thly
ch
urn
(%
)
1. Safaricom M-Pesa Experience, July 2010. September, 2009 ARPU figures from Informa Telecoms & Media (WCIS). 2. Based on Philippines Case Study, CGAP 2009. Additional proof point comes from MTN Experience, South African and Uganda. Mobile Money for the Unbanked Working Group: Churn reduced
from 75% annually to 25% (approx 6.25% monthly vs. 2% monthly) in South Africa. 3. eServGlobal experience, 2008. Cost base is estimated.
Reduction in distribution costs due to electronic recharge3
-4%
Tota
l op
era
tor
cost
b
ase
Aligning high churn (mobile) and low churn (banking) businesses
reduces churn2
4% cost reduction in entire cost basis of MNO.
Additional revenue stimulation estimated at ~8-10%
Before AfterNormal subs M-money users
Reduction in customer turnover due to mobile money2
We enable operators to drive new revenue streams, retain their customers, and decrease their distribution costs
4
5
6
7 10% increase
Mon
thly
AR
PU
Mobile money accounted for a 10% increase in Average Revenue Per
User at Safaricom1
Before After
Increase in revenues due to mobile money
12eServGlobal Proprietary and Confidential
eServGlobal Mobile Money Experience
12 years’ experience in Mobile Money Services
From voucher recharge through to international remittance
A step by step approach to continuously propose customers innovative services
Our solutions are built in partnership with our customers
PayMobile solutions currently deployed at 23 customer sites
A creative and flexible engineering team experienced in the latest technologies who are able to anticipate customers’ specific needs
Solutions that enable MNO’s to grow
We are supporting 500,000 transactions per busy hour for 235,000 retailers and 33,000,000 subscribers at a large Mobile Operator in Pakistan
13eServGlobal Proprietary and Confidential
End-to-end, any-account-to-any-account mobile money: bill payments, airtime, P2P transfers, salaries…
Ready to integrate with Banks, Credit cards, Retailers, m-wallets…
Open API’s for maximum interconnectivity
International remittance with HomeSend
Mobile Money – PayMobile (m-wallet)
14eServGlobal Proprietary and Confidential
The Mobile Money Network The Hub acts as an open and neutral intermediary between the various participants in the ecosystem
International Remittance - Mobile to MobileHomeSend
16eServGlobal Proprietary and Confidential
Mobile Money Services in Emerging Markets
3 billion people currently lack access to financial services
There are 6 times more handsets than bank accounts in the world
Across developing countries 1 B people have a mobile phone but no bank account. This figure is estimated to grow to 1.7 B by 2012
For formal international remittances of US$500 B, $65 B is expected to be mobile by 2013
Over 12 million microfinance loans are distributed annually worldwide (US$16 B)
That there are around 200 million migrant workers worldwide, each sending home between US$2,000 and US$5,000 per year. This gives an estimated market of $400-1000 B. Migrant workers are expected to do weekly transfers, which gives an average amount of $40-100 per transaction
World Bank & CGAP, 2009
World Bank, GSMA, 2009
World Bank, GSMA, 2009
Juniper Research, 2009
Informa 2010
World Bank, IFC
In the unbanked world mobile users want their mobile phone to provide “currency” storage with the ability to receive, spend and transfer
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International Money Transfer
<1% 45% 55%
2008: US $433B in formal international remittances
2014: Estimated US $500B in formal international remittances
Mobile Top-Tier MTO’s1
1. MTO is a Money Transfer Organization. Top-tier MTOs include Western Union, MoneyGram, Eurogiro, and VigoSources: GSMA (MMT Working paper), 2008; World Bank, 2010; Juniper Mobile Money Transfer, 2009.
Banks & other
13% 30-40% 40-50%
Mobile Top-Tier MTO’s1
Banks & Other
+$250Bn
Informal Sector
Mobile Remittance Revenues ($USD)
$ . B
$ .5 B
$ 1. B
$ 1.5 B
$ 2. B
$ 2.5 B
2009 2010 2011 2012 2013 2014
Source: Juniper Research, 2009
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International Money Transfer Market
Any device, any channel
UnbankedBanked
Traditional
Informal channels
Traditionalbanks
19eServGlobal Proprietary and Confidential
HomeSend / Traditional MTO Comparison
Leverage MNO’s Networks Bricks and Mortar
Cost Base
Access to Customers
All subscribersAny channelAny device
Customers with physical access to an agent or a bank
account
HomeSend represents the future of international remittances:It uses the pre-existing telco network to address billions of subscribers
Traditional Money Transfer Org
Traditional Money Transfer Org
20eServGlobal Proprietary and Confidential
What the Industry Experts Are Saying about HomeSend
Mobile-centric from sender to receiver – banks welcome, but not required
Mobile-Centric: HomeSend “provides a mobile-centric approach to international remittance. This represents a significant new step in mobile payment, allowing any mobile service provider in any country to access the international remittance market.”
Market lead: HomeSend “provides an alternative to banks' or money transfer agencies' remittance corridors. So far it is the first operator-oriented remittance hub in the market with live operation”
Proven hubbing and financial experience: “BICS provides the connectivity to carriers, as well as the clearing and settlement know-how”
21eServGlobal Proprietary and Confidential
Belgacom International Carrier Service
Offices in Brussels, Bern, Dubai, Monaco, NY, Singapore
Belgacom (57.6%), Swisscom (22.4%) and MTN (20%) as shareholders
Signalling 3GRX
Instant Roaming
IPX
Video Tel.
Business Class
VAS
Simbox Detection
RoamGuard
First Class Mobile VoIP
SMS Transit
MMS Transit
4th largest international carrier Transporting 25 billion minutes/yr Generated € 1.26 billion in
revenues in 2009
A network of networks, globally connecting 250+ telecoms operators to make international telecommunications in all its forms possible.
22eServGlobal Proprietary and Confidential
How HomeSend Works in PracticeCash In: Sender deposits their currency of residence via Telco agent (SMS, Internet, vouchers, etc) into their m-wallet which is credited
Cash Out: Receiver withdraws cash (in their currency) from their m-wallet (which is debited) at an agent outlet.
Sender
International Remittance: Sender remits money to receiver using their mobile phone. Money is transferred into the receiver currency. Sender’s m-wallet is debited and receiver’s m-wallet is credited.
Sender’s Telco m-wallet
Sender
Telco Agent
Telco increases balance in the
sender’s m-wallet
Receiver’s telco reduces their m-wallet balance
Receiver’s Agent
Country Sender
Country Receiver
Receiver’s Telco m-wallet Receiver
Receiver
Internet
SMS
23eServGlobal Proprietary and Confidential
How do the Transactions and Clearing Work?
Sending RSP
Sending currency
Receiving RSP
Receiving currency
Sender Receiver
Money transfer between the sender and receiver is both instant and available 24X7. The settlement process by the Remittance Service Providers (RSP) is carried out via existing banking networks
Settlement Instructions
(daily)
Settlement Account of Sending RSP
Settlement Account of Receiving RSPBank
Settlement Account Prefunding
Settlement Account Repatriation
Daily Debiting Daily Crediting
Tra
ns
ac
tio
n P
roc
es
sin
g(r
ea
l-ti
me
)F
ina
nc
ial
Se
ttle
me
nt
(ba
tch
)
FX conversionLocal account Local account
24eServGlobal Proprietary and Confidential
Hosted m-Wallet
SenderMobile Network Operator Sender
Receiverm-Wallet
The hosted m-wallet is targeted at operators that either do not have or have not yet deployed a Mobile Wallet
The benefits to the MNO’s are that there is no CAPEX or OPEX required, reduced time to market and reduced risk
The benefits to eServGlobal and BICS are an extension of the PayMobile pipeline and an increase in MNO’s ready to deploy HomeSend
Mobile Network Operator Receiver
25eServGlobal Proprietary and Confidential
HomeSend Steps to SuccessWe are on the path to generating strong returns from HomeSend
Build the Platform
Sign up MNOReceivers
Sign up MNOSenders
Sign up MTO’s, Banks and PSP’s
Get Transaction Volumes Up
GSMA Endorsement
Regulatory Compliance
1st Mover Advantage
38M subscribers to-date
14M subscribers able to send funds
BICS & Hub Members: marketing efforts
Strong pipeline
Strong pipeline
Just Starting
26eServGlobal Proprietary and Confidential
HomeSend and PayMobile
Promotions, Loyalty and Retention
eServGlobal Proprietary and Confidential 28
The Value of Loyalty & Retention
0%
1%
2%
3%
4%-20.3%
Mon
thly
ch
urn
(%
)
1. eServGlobal experience, Peppers & Rogers benchmarks2. Average subs, ARPU, churn based on Q3 2009 estimates from Informa Telecoms Operator Database (WCIS)
$5
$7
$9
Impact of loyalty program on operator voice revenues1
+32%
Pre
-paid
Mon
thly
AR
PU
Adds $25M/yr in pre-paid revenue for the average
European telco2
Added 32% in voice revenue increase in
sample emerging market1
Before AfterBefore After
Impact of loyalty & promotion program on pre-paid churn1
We help operators attract, retain, and stimulatesubscribers with advanced loyalty & retention solutions
eServGlobal Proprietary and Confidential 29
PromoMax
Flash & trackerpromotions
UserInteraction
Services
UserSegmentation
CostControl
Lottery, Draw Administration& Supervision
Access Interface
PromoMax
Flash & trackerpromotions
UserInteraction
Services
UserSegmentation
CostControl
Lottery, Draw Administration& Supervision
Access Interface
Loyalty and Retention
MNOs’ marketing departments are driven by loyalty and retention
We are taking a marketing and services-oriented approach by moving loyalty and retention out of the domain of the IT department and back to the user – Marketing
Our promotions focus on true one-on-one interactions based on subscribers’ actions
Geo-localisation applications are becoming popular with consumers
Use 5 more minutes and get
3 free!
Use 5 more minutes and get
3 free! Here’s a Domino’s Pizza coupon to go
with your movie download!
Here’s a Domino’s Pizza coupon to go
with your movie download!
eServGlobal Proprietary and Confidential 30
Loyalty & Retention - PromoMax
Orange: SaaS-based loyalty program: Provided customers with a tiered loyalty program– more calls, more rewardsVoice revenue 32%Active customer base 50%
Niger
Tunisiana uses PromoMax to:
Run 10 simultaneous personalised B2B, B2C, and event-based promotions today
Interacting with 10% of the customer base/day
PayMobile-integrated recharge promotions
The PromoMax workbench returns the power to the marketing department to create their own promotions
One of our prospects spends US $600,000 in consulting fees to launch each new promotion!
eServGlobal Proprietary and Confidential 31
Market-Leading Technology
Immediate promotion creation using the PromoMax workbench
Envision, design, and launch promotions in under a day
Empowers marketing department
Any action, any reward, anywhere …and in real time
Based on usage, recharges, spending, browsing…
Enabled by PromoMax’s real time control
Advanced customer intelligence
Customer intelligence ensures effective, personalised rewards
Adapt to customer response to historic promotions
Real time promotions
Immediate campaign response
eServGlobal Proprietary and Confidential 32
PromoMax
You can
Register your customer
then simulate Recharges
Customer may receive a
reward depending on the
pre-configured promotions
on PromoMax Live
They say
“I received my award
straight away”
“Lottery, I love it”
“This is really flexible”
Value Added Services
eServGlobal Proprietary and Confidential 34
Value-Added Services
Wide array of complementary and standalone Value-Added Services offerings…
eServGlobal Proprietary and Confidential 35
Customers can Mix and Match
Solutions targeted for our client’s needs and desires
In giving our clients the flexibility to grow, we increase our ability to up-sell and cross-sell
Increasing our clients’ ROI by combining
solutions
Recharge &
Promotions
m-Wallet
w/ loyalty
& location-
based
services
eServGlobal Proprietary and Confidential 36
Value-Added Services Strategy
Cross-sell our existing customer baseVAS offerings enhance our e-recharge & mobile money products
Extend our footprintNo clear market leader in this domain: room to grow
Target mature markets with m-couponing and mobile advertising
Pursue SaaS delivery models Low saturation – high growth potential
Ideal for MVNOs, new MNO’s, and emerging markets
Rapid and cost-efficient for our customers