Retailers and Consumers: Adaptation to Mobile Payment – Bangladesh Perspective

S M Zahadul Arafin | Head of B2B, Grameenphone Ltd. March 16 | Kuala Lumpur, Malaysia | 8th Mobile Commerce Summit Asia, 2016.

Country Overview on MFS

28 Bank permitted for MFS

20 Bank started MFS operation

30.24 Mill Registered Customer

547,813 Registered Agents Source: - Bangladesh Bank (Central Bank of Bangladesh) - Mobile financial services in Bangladesh, April 2015, US AID

Competitive Landscape of Mobile Payment in Retail- The Story Begins

Behavioral Adoption: Un-banked Business Segment challenges

Transaction Limit and Service Charge of Personal Wallet is suffice for them

Business Wallet (Merchant Plus Wallet) with a

Service Fee is not an issue for them

Behavioral Adoption: Un-banked Business Segment challenges

Highly Cash driven, Low Education level, No Process at all, No business Documents, Not habituated to

Electronic Payment, Mostly Un-banked even at personal level, Difficult to Change and Adopt new things, Not

ready to give any Fee for service.

Challenges with Consumers

Customers of these segments are no challenge because most them are Convenience Seeker, visiting super shops or have

online options, ready to Pay a Price for convenience

Challenges with Consumers

Customers of these segments are a challenge because most them are Fighting for Basic, visiting regular shops nearby and not

ready to Pay a Price for convenience

Merchant Segmentation and Characteristics

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Characteristics: - Habituated with electronic type of payment i.e. card - Habituated with providing service fee - Want to reduce cash dealing - Process driven, operated by employee - Mostly banked

Characteristics: - Highly cash driven - Traditional and operation run by self along with one or two

employees - Unstructured and not habituated to electronic payment - Mostly un-banked even at personal level

Ground Need

Remote payment

Fake Note Security

Change Incremental Sale

Savings

How to Overcome the Challenges?

Merchant Plus Wallet

Customer Wallet

Small Merchant Wallet

Bank

Payment from customer wallet

No operational cost. service/settlement is free

Limit 15,000 BDT per month

No start up cost for opting service

Distribution House

DISTANCE LOCATION

Service/settlement fee

No Limit

Direct Bank Settlement

Payment is free

Whereas Cash-out is charged

What is next?

- Making better digital experience

- Overcome literacy issue through technology

- It should economically making them better off

- Helping their business to grow

- It has to be assimilated as their basic need

- Managing fraud

*All the pictures has taken from internet