Obopay Confidential 2
The Opportunity to Bank a Billion People
What the iPod® did for music, The mobile phone will do for money.
Obopay personalizes money by making it instantly
accessible, usable, and transferable.
In the process, make banking services and electronic payments available to all
mobile phone subscribers!
A Catalyst for Financial Inclusion
Obopay Confidential 3
The Landscape
• Low ATM & Pos Penetration• 600MM+ Un-banked• Largely cash based
– > 90% transactions are cash based– time-value of cash is lost– theft and loss– High inherent cost of cash-handling is baked into goods and
services pricing• Card payment value chain resist fee reductions and are
unviable for micro-payments• Mobile phones growing at 6.5 MM per month• Carriers announce sub Rs 1,000 Handset• Lifetime prepaid at < Rs 1,000
Obopay Confidential 4
India Landscape
Cell Phones
31.2, 22%
29.7, 20%
23.6, 16%
19.1, 13%
14.4, 10%
28, 19%
Bharti
Reliance
BSNL
Hutch
Tata
Others
150 Million + Growing at 7 million a month
Obopay Confidential 5
Obopay
• Intuitive Application on the Phone– Instant Mobile-to-Mobile transfers– Low Cost Micro payments– Casual payments– Great Friends & Family transfers– Bank Neutral– Carrier Neutral (CDMA & GSM)
• Consumer Benefits– Most convenient way to exchange
money– Ubiquitous; All 2 Billion phones, all
retailers, any ATMs– Ignite the market – move quickly
to purchasing
Obopay Confidential 6
Closed Loop Payment System
• Affordable Micro-transactions• Peer-to-peer payments for ALL• Debit/Good funds model to lower cost and
increase reach• Potential
– Great alternative to cash– Small business applications – Electronic payment convenience to all mobile phone
users.– Innovative purchasing applications– Cross border convenience
Obopay Confidential 7
Benefits – to all parties • To the Economy
– Deposits into the banking system will increase– The recorded economic activity will grow– More transactions are traceable– Increases velocity of money– Low cost, secure solution for government disbursements and
eliminates middlemen– Via media for low cost micro-finance and financial inclusion
• To Banks and the Post Office– New deposits, new customer– Low cost small deposit solution– Money stays in the banking system longer– Ability to migrate customers upward– “No Frills” service enablement for Un-Banked– Effective remittance distribution solution
Obopay Confidential 8
Benefits – to all parties • To individuals
– Trade over distances will be facilitated. – Convenience and safety of carrying less cash– Instant inter-personal transactions– Eliminates need for small change
• To businesses– Low cost solutions (no hardware except a phone required –
eliminate cost of POS terminal)– Lower cost of payment collection– Ability to take payments over a distance– Convenience and safety of handling less cash– Reduced collection risk– Inexpensive – facilitates micro-payments, mass distribution of
funds, microfinance
Obopay Confidential 9
Benefits – to all parties
• To the regulator and the government– Loading only through authorized bank channels– Bank KYC compliance a pre-condition– Total transparency of source and destination of funds
with full disclosure to RBI and other interested government bodies
– Traceability of transactions– Catalyst for inclusive banking– Lowering cost per transaction through payment
system efficiency– Lowering the threshold of transactions that can
effectively come into the banking network– Effective government funds disbursement of loans,
grants, pensions
Obopay Confidential 10
Obopay
0
10
20
30
40
50
Txn Costs
In Rupees
Comparitive Costs
BranchCost
ATM
Internet
Mobile
Obopay Confidential 11
Target Audience - India
Primary– Micro Finance Consumer– Micro Finance Agent– Mobile Youth – Consumer– Professional
Secondary
– Parents/Head of Household – Government Payments– Person as Merchant
Sources: U.S. Census Projections of the Resident Population, Based on July 1, 2006 Projections and National Center for Education Statistics, Projections Through 2013
Obopay Confidential 12
Initial Service
Obopay OnlineObopay Online• Sign up
• Links to existing bank account
• Load from Bank Account
Mobile ExperienceMobile Experience• Download or On Demand
• Pay, Request Pay, Balance & History
• Native mobile client, text or WAP
• Real-time P2P money exchange
• Easy money out:
• Merchant & ATM acceptance with Bank Card
• Potential for SMS Code based cash-out at Post Office and Bank Branches
Mobile & Desktop application extensionsMobile & Desktop application extensions• Web Client
• Instant Messaging Client
• Integration with m-commerce, e-commerce
Obopay Confidential 13
MFI Payments & Collections Scenario
Obopay OnlineObopay Online• Sign up for Post Office or No-Frills Account
• Links to existing bank account or Post Office Account
• Load with cash at branch or MFI agent
• Load from account
Mobile ExperienceMobile Experience• Download or On Demand
– Pay, Request Pay, Balance & History
• Native mobile client, text or WAP
• MFI Collections through request pay
• Real-time P2P money exchange
• Easy money out:
– Mobile Authorization Code at Bank, Post Office or MFI Agent
Mobile & Desktop application extensionsMobile & Desktop application extensions• Bank or Post Office staff access through Mobile or Web
Obopay Confidential 14
Post Office – Amazing Reach
Total Number of Post Offices in the Country 155,516
Total Number of Post Offices in Rural Areas 139,120
Total Number of Post Offices in Urban Areas 16,396
Number of Sub Post Offices 25,113
Number of Head Post Offices 822
Number of ED Sub Post Offices 2,398
Number of ED Branch Post Offices 127,183
Number of Delivery Post Offices 144,900
Obopay Confidential 15
Potential to ramp up
1011
6875
311
1016
7052
320
0
1000
2000
3000
4000
5000
6000
7000
8000
2003-2004 2004-2005
Number Lakh
Value in Crores
Comission inCrores
Postal Money Orders
Average value of money order Rs. 694
Obopay Confidential 16
Obopay Mobile Products
Obopay SMSObopay SMS Obopay WAPObopay WAP Obopay Mobile ClientsObopay Mobile ClientsSend commands to
shortcode [62729] or [OBPAY]
Full suite of commands allows users to:
send money, check balance, get money, history, request help, stop
Obopay provides WAP functionality to send, get, spend money and check history
Obopay providesWAP registration
Available on any mobile phone or mobile device
Full suite of J2ME & BREW
Send Money, Get Money, Balance, History
Roadmap for Windows Mobile, Palm, RIM & Symbian
Obopay Confidential 17
Roadmap
P2P RetailSee & Scan
P2PP2 Pas
Merchant
Mobile Shopping Mobile Banking
NFCContact-less Payments
2007 2008 2009 and Beyond
Banking
•Banks will enable functionality to extend to mobile phones
•DDA, Transfers, Balance
Retail, Media, Online
See & Buy
Obopay Confidential 18
• Obopay in discussions with banks – what they want:– Reduce costs– Customer Convenience
• Mobile Access to Checking (money to Obopay account and balance inquiry)
– Increase service and reach
Banking
CheckingLess Cash
$$$$$$
Less Checks
Debit Card Purchase
Bank
Remittance
Obopay Confidential 19
US Marketing – Case Study
Amp’d MobileAmp’d Mobile
• Joint Marketing
• Co-branded registration page
• Co-branded pre-paid MasterCard
• Phase 1
– Downloadable BREW client
– WAP
– SMS
• Phase 2
– Pre-loaded BREW client
– Embedded in 3rd party apps
Obopay Confidential 20
Marketing – Family Plan
• Obopay customers can set-up to 3 additional accounts for dependants
• Parents can send their dependants money to their mobile devices or in case of emergencies
– Increased visibility of transactions
– Instant gratification
Sponsor
Obopay Confidential 21
Obopay India Pilot WorkflowAcross Banks
Cust ‘A’ sendsINR50 to Cust ‘B’
P2P Scenario
Cust ‘B’ receivesINR50 from Cust ‘A’Obopay System
of Record
Dr. Cust ‘A’ Obopay Account for INR 50
Cr. Cust ‘B’ Obopay Account for INR 50
Bank ADr. Cust ‘A’Cr. Bank B for A/c of ‘B’
Bank B G/LDr. G/L Bank ACr. Cust ‘B’
NET SETTLEMENT AT END OF DAYBANK A PAYS BANK B Rs 50THROUGH NEFT/RTGS
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Payment Platform overview
Credit, Debit & ATM Merchants
CardProcessing
CardPerson
2Merchant
Person2
Person
RegistrationAnd
AccountManagement
IndividualAccounts& SOR
Card Network
Card Network
RealtimeBalance, History & Acct-2-AcctIntegration
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Obopay Mobile Payment Ecosystem
Retailers, m-tailers and e-tailers
Banks & Post Office
Consumers- The Obopay Payment System plays a central role in mobile payment transactions between Consumers and Merchants.- Interactions are bidirectional in that Consumers can stimulate purchases as well as Merchants can stimulate offers.- Both Consumers and Merchants can make use of transactional history data which exists in the Obopay Payment System.
Consumer• Get, Send Spend• Opt in
Merchant• Promotions• Up/Cross Sell• Campaigns• Coupons/Rewards
Person as a merchant
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Global Use Cases
Philippines Globe Telecom/GCash
P2P Domestic Micropayments,
Remittance
Philippines Rural Banks Association
Transfers, Bill Payments
Kenya Vodaphone / M-Pesa
P2P, Loan disbursement and Collections
Brazil Unibanco P2P, Loan disbursements
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Global Use Cases
Chile Bandesarollo Money transfer, Loans, Account Opening
South Africa Wizzit/FNB/MTN Banking/Post Offices
Payment and Airtime purchase
Uganda Centenary Bank Money Transfer, Bill Payments, Loan Repayment
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Legal & Regulatory
Obopay is in compliance of a myriad of Financial Industry Norms
Regulation Compliance Description
OFAC ID check – OBOPAY USA
Money Laundering Bank Partners in India (OBOPAY in USA)
Know Your Customer
Bank Partners in India (OBOPAY in USA)
Consumer Privacy Privacy Policy
Regulatory USA – State Licensing, India – Service provider to banks. Can only service Banks. End consumers remains a bank customer.
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Obopay
• Innovative new mobile payment service
• Intuitive application on the phone
• US setup 2005, India 2007
• New economics only a closed loop payment system can deliver
• Potential is big – bring affordable banking services to everyone with a mobile phone.
Obopay Confidential 28
Obopay Highlights
• Obopay: Founded in 2005 in USA• Strong Management Team
– Leadership from mobile, banking, payments, technology
• Investors – Redpoint Ventures, Onset Partners and Richmond, James Wolfenson– Qualcomm led strategic round – August 2006– India Specific Investment – NEA Indo US – Nov 2006
• Launched live, real-time P2P service – June 2006• Partnership with Amp’d Mobile – July 2006
– Co-branded MasterCard– Obopay to be deployed on all handsets – client, wap, sms– Joint marketing to university students
• Partnership with Helio – September 2006• Partnership with Top 3 Global Bank – Feb 2007• Partnership with Leading Global Instant Messaging Vendor –
Feb 2007
29
Thank You