Mobile payment opportunity in the midle east and africa(mea) region

1| Copyright © 2010 Grail Research, LLC
Mobile Payment Opportunity in the
Middle East and Africa (MEA) Region
February 2010
Movotek Innovations Limited
Suite 4, Level 7, Bright Way Tower,
Mong Kok Road, Hong Kong
Email: info@movotek.com
Web: www.movotek.com

 The Mobile Payment (M-Payment) market in the Middle East and Africa (MEA) region is
expected to grow rapidly over the next few years
• MEA M-Payment transaction value is expected to grow at 66% annually over the next
few years, reaching USD 28.1 billion or 11.3% of the global value by 2012
 Key segments of the M-Payment market are M-Remittance (84% of the expected
transaction value by 2012) and M-Money, which includes retail purchases, airtime top-ups
and bill payments via mobile phone
 Underlying drivers supporting this rapid growth in the market are:
• The large (and growing) gap between bank penetration and mobile penetration in the
region
• A large number of contractual workers who typically do not have bank accounts
• A sizeable immigrant population making regular remittances to their home country
• The relatively low usage of credit cards in the region
 The resulting economics and ROI for M-Payment service providers are attractive
• M-PESA, developed with an initial investment USD 3.2 million by Vodafone, generated
USD 42.5 million in M-Payment revenue for its affiliate Safaricom in Kenya (in 2009)
 Attracted by the fundamentals of the market and validation of the business model by
players like Safaricom (M-PESA), many of the telecom companies in the region have
introduced M-Payment services
 However, the market is still in the early stages of development and there is plenty of
opportunity for new and existing players to create and capture value through a number of
different business models
Mobile Payment Opportunity in the MEA Region
Executive Summary

Table of Contents
 Market Opportunity
 Competitive Landscape
 Business Models
 Case Studies
 Challenges
For more information, please visit http://www.movotek.com

Gross M-Payment Transaction Value by Region and Segment
 Emerging markets such as Asia, MEA, and South America are expected to capture a
global M-Payment market share of 65% by 2012
• M-Payment transaction value in the MEA region is expected to grow at a healthy rate
(CAGR of ~66% over 2008-2012)
 The expected increase in gross M-Payment transaction value will be driven by the rise in
M-Payment subscribers and the greater value transacted per M-Payment user
Market Opportunity
Expected Growth in M-Payment Transactions
USDbillion
151.6%
51.6%
Africa
Middle East
CAGR
2008-12
84%
1%
4%
11%
M-Money
Segment
Gross M-Payment Transaction Value1 by Region, 2008–2012E M-Payment Transaction Value2 by Segment, 2012E
14.5
18.5 18.5
2.6
5.0
9.6
4.23.5
0.70.2
0
8
16
24
32
40
+66%
2012E
28.1
2011E
23.5
2010E
17.1
2009
4.9
2008
3.7
2
1
RetailOthersTop upRemittance
M-Remittance
Segment
 The M-Payment market is defined as:
• M-Remittance, which includes international and
domestic money transfers
• M-Money, which includes retail purchases, top-ups,
utility payments, and B2C transfers
 M-Remittances comprise the majority of the market with
USD 23.6 billion in expected transaction value by 2012
Note: 1The data has been sourced from an image and may not represent the exact values; 2Estimated Values – Grail Research Analysis
Source: ‘M-Payments surging ahead: distinct opportunities in developed and emerging markets’, Arthur D Little, Aug 2009; ‘Mobile Commerce in MEA’, Delta Partners, Jan
2009; ‘Dialed into EMEA telcos’, Macquaire, Mar 2009; Grail Research Analysis
The MEA region represents a significant opportunity for M-Payment services with transaction value expected
to grow from USD 3.7 billion in 2008 to USD 28.1 billion in 2012
The global M-Payment transaction value is expected to reach USD 249.1
billion by 2012, implying an 11.3% share for the MEA region

Market Opportunity
M-Payment Market Segments
USDbillion
23.6
19.4
13.7
4.23.6
0
8
16
24
32
40
+60%
2012E2011E2010E20092008
 Currently, mobile top-ups and other value added services form a major
portion of the M-Money market in the MEA region
 Retail purchase via mobile phone is expected to witness the highest
growth in M-Money transactions
• The transaction value of retail purchase is expected to rise from USD
26.3 million in 2009, to USD 405.7 million in 2012
 Several companies are considering transferring employee salaries to
their mobile phones. This may further increase the value of M-money
transactions in the region
M-Remittance Transaction Value, 2008–2012E M-Money Transaction Value, 2008–2012E
USDbillion
 In the Middle East, 70% of the recently launched M-Payment
initiatives are related to money transfer through mobile, indicating a
focus on M-Remittance related services
• International transfers are expected to form a major part of M-
Remittances because of the large immigrant population
 In Africa, domestic remittances are expected to form the majority of
M-Remittances, as a result of the substantial unbanked population
Note: 1Estimated Values – Grail Research Analysis
Source: ‘Mobile Commerce in MEA’, Delta Partners, Jan 2009; Business Intelligence Middle East; Middle East Mobile Money; Grail Research Analysis
9%
24%
67%
While remittances dominate M-Payment transactions, M-Money transactions are expected to grow at a faster
rate, as value added services like retail purchases via mobile phone will become more popular
M-Money Transaction Value1 in the MEAM-Remittance Transaction Value1 in the MEA 21
Others
Retail
Top-ups
 In the Middle East, 70% of the recently launched M-Payment initiatives
are related to money transfer through mobile phones, indicating a focus
on M-Remittance-related services
• International transfers are expected to form a major part of M-
Remittances because of the large immigrant population
 In Africa, domestic remittances are expected to form a major part of M-
Remittances, as a result of the substantial unbanked population
4.5
4.1
3.4
0.7
0.1
0
2
4
6
8
10
+164%
2012E2011E2010E20092008E

 M-Payment is a convenient ‘funds
transfer’ option in areas with low bank
accessibility
 The large and growing gap between
the number of mobile subscribers and
bank account holders make MEA an
ideal market for M-Payment service
providers
Market Opportunity
Drivers of the M-Payment Opportunity
Note: 1Calculated by Grail Research and refers to Workers' remittances, compensation of employees, and migrant transfers, debit; 2 Made primarily through credit cards
Source: Business Intelligence Middle East; Gartner; IE Market Research; Arthur D Little; ‘Mobile Commerce in MEA’, Delta Partners, Jan 2009; First Arabic Financial Daily;
International Trade Administration; International Organization for Migration ; World Migration Report 2008
Large Number of Transient Workers
High Mobile Penetration &
Low Bank Penetration
52%
30%
30%
22%
0% 35% 70%
Middle
East
Africa
Population’s Reluctance to use Credit Cards
 Adoption and usage of credit cards is low in the MEA
region
• USD 6.9 billion in electronic payments2 in the
region in 2009 represented only 1.8% of the global
e-payment transaction value
 Low credit card usage may be attributed to
behavioral & religious reasons
 Given the high mobile penetration, M-Payment can
be a popular alternative to credit cards
1
4
Bank PenetrationMobile Penetration
Gap in Mobile and Bank
Penetration in MEA, 2007
2
 Transient workers, form a significant proportion of
the workforce in the Middle East, accounting for
over 50% of labor force in the GCC
 These workers have low/irregular incomes and can
benefit from M-Payment as no minimum balance or
regular installments are required
 Contractual workers typically make frequent low-
value transactions that have lower risk, thus making
M-Payment a preferred transaction medium
In MEA, factors such as the large number of migrants, transient workers and a substantial (and rapidly growing)
mobile user base are driving the growth of the M-Payment market
 The MEA region currently has ~40
million migrant workers, leading to a
substantial outflow of funds from the
region
• M-Payment service providers can
capture a sizeable share of the
‘international remittance’ market,
given the cost advantage over
traditional funds transfer mechanisms
Large Immigrant Population in Need of
Remittance Services
3
39.737.435.3
31.229.8
0
25
50
20082007200620052004
Remittances1 Outflow from MEA,
2004–2008
USDbillion

427.5
587.5 702.9
122.5
0
400
800
1,200
1,600
2012E
1,280.0
2011E
773.0
2010E
466.9
2009E
282.0
2008
170.3
93.5
Investment for Money Transfer Platform Development
Market Opportunity
Economics and ROI in the M-Payment Market
Market Potential (Range) for the M-Payment Services Sector in MEA, 2008–2012E
USDmillion
Market Potential for M-Payment Service Providers in MEA
Returns – M-PESA in Kenya
 In 2003, Vodafone invested USD 3.2 million to develop a cash transfer
platform (other costs such as setting up infrastructure, e.g., POS and
advertising not included). The M-PESA offering was piloted in 2006 and
formally launched in 2007. This money transfer platform enabled:
• Provision of cash balance on mobile phones (M-Wallet services)
• Transfer of money to third parties such as non-Vodafone customers and
non M-PESA account holders
• Airtime purchases for an individual’s or a third party’s phone
 In FY09, Safaricom, an affiliate of
Vodafone (40% stake) generated USD
42.5 million in revenue from M-PESA
with an estimated USD 4.26 million1
subscribers
• This translates to an average
incremental ARPU of USD 9.98
 M-Payment penetration is ~46% of
Safaricom’s subscriber base (as of Mar
2009)
ROI on M-Payment
Services – The Case
of M-PESA
Safaricom’s M-PESA service illustrates the strong ROI experts believe M-Payment providers can expect. M-
Payment service providers are projected to capture 2.5%-4.5% of the transaction value by 2012
Note: 1Estimated Values – M-PESA customers for each month have been averaged out
Source: ‘Mobile Commerce in MEA’, Delta Partners, Jan 2009; ‘Progress of Funded Projects’, Vodafone Group, Nov 2006; Grail Research Analysis
Market potential for M-
Payment services may range
from USD 702 million to USD
1,280 million in 2012 (2.5%-
4.5% of the total transaction
value)
Range

Table of Contents
 Business Models
 Case Studies
 Challenges

Potential Opportunity – Gap
Between Mobile and Bank
Penetration, 2007
Zain Batelco Etisalat du
Wataniya
Telecom
Orange MTN STC
Jordan
UAE # of Bank Branches1: 727
Bahrain # of Bank Branches2: 95
Kuwait # of Bank Branches3: 554
Saudi Arabia
Oman
Oman has two domestic mobile operators: Oman Mobile and Nawras. However, M-Payment
services are not currently offered in Oman
Competitive Landscape
Telecom Service Providers in the Middle East
Country
Players
 Mobile Network M-PaymentNote: 1Data for 2009; 2Data for 2003; 3Data for 2007
Source: ‘Mobile Commerce in MEA’, Delta Partners, Jan 2009; ITU; World Bank; IMF; Alrroya; Grail Research Analysis
 

 

 






 




 

     
While a number of Telcos in the Middle East offer M-Payment services, there is significant opportunity for both
new and existing players to capture value from this market
33%
77%
62%
101%
193%1
37%
77%
Mobile Penetration
Bank Penetration
64%2
97%3
In Feb 2009, STC announced plans
to launch M-Payment services in
Kuwait through its subsidiary - Viva
# of Bank Branches in country
?

Competitive Landscape in the Middle East
M-Payment services in the Middle East have been growing in the last few years; however Saudi Arabia
continues to be an untapped market despite favorable fundamentals (mobile penetration, migrant population)
Note: Pricing details are represented in USD using on-date conversion rate from oanda.com
Source: ‘Value-Added Service and Applications’, GSA, Jan 2009; ‘Etisalat mobile payment’, AME Info, May 2007; ‘Visa International and Fastlink debut new mobile payment
service in Jordan’, AME Info, May 2005; Primary Research Interviews with industry experts/ operators; ‘Consumers not prepared to pay for mobile banking’, egovonline, Jul 2009
Incumbent M-Payment Service Offerings in the Middle East
Syria
Iraq
Jordan
Israel
Lebanon
Saudi Arabia
Yemen
Oman
U.A.E.
Qatar
Bahrain
Kuwait
 Mobile operators in Saudi Arabia have not yet
launched M-Payment services. The market has
high mobile penetration (120% in 2008) and a
large immigrant population (over 6 million in
2007), thus providing significant opportunity for
service providers
 According to a survey in 2009, 67% of people in
Saudi Arabia indicated a ‘high comfort level’ in
conducting financial transactions via mobile
phones
Saudi Arabia
 Zain: Launched in May 2005, Zain-M-Payment
service allows users to transfer airtime to other
customers. Zain charges USD 0.20 per
transaction
Jordan
 Zain: Launched in 2006, Zain’s M-Pay
allows users to recharge airtime with funds
from their bank account
 Wataniya Telecom: Launched in Feb 2006,
Wataniya Telecom’s GoDo! portal allows users
to access their bank accounts through
mobile phones
Kuwait
 Du: Launched in Apr 2007, du’s M-Payment
services allow users to pay bills and recharge
airtime
 Etisalat: Launched in May 2007, Etisalat’s M-
Payment services allow users to pay their
mobile bill via a pre-registered credit card
UAE
 Zain: Launched in Nov 2008, Zain Me2U
offers remittance, top-ups and utility
payment services. It charges USD 0.15 for
money transfer in Bahrain. International
remittances start at USD 2.64 per transaction.
In 2009, the offering had between 3,000 and
4,000 customers
 Batelco: Launched M-Payment services
in Jul 2004, including a mobile bill pay
service
Bahrain

Potential Opportunity
– Gap Between Mobile
and Bank Penetration,
2007
Zain Batelco Etisalat
Vodafone /
Vodacom
Orange MTN
Glo
Mobile
Maroc
Telecom
Millicom
South Africa
Tanzania
Egypt
Kenya
Uganda
Nigeria
Mauritius
Morocco
Telecom Service Providers in Africa
 Mobile Network M-Payment
Country
Players
 
 

 
 








 











Note: 1Data for 2008. Bank penetration is the average cited in news articles; 2Data for 2009
Source: Mobile Commerce in MEA’, Delta Partners, Jan 2009; New Vision; Grail Research Analysis

Most African markets have low bank penetration and a rapidly growing mobile subscriber base, making them
attractive markets for M-Payment offerings
95%
46%
5%
22%
30%
15%
32%
10%
74%
54%
39%2
16%2
48%1
20%1
Mobile Penetration
Bank Penetration
 
 
59%
28%
 
 
Vodafone offers M-PESA
service through its affiliate
Safaricom

Africa has been a test bed for M-Payment services. The early success of M-PESA and Glo has motivated pan-
African rollout of these services and also served as case studies for M-Payment deployment globally
Incumbent M-Payment Service Offerings in the Africa
Niger
Egypt
Kenya
Tanzania
Nigeria
Malawi
Uganda
South
Africa
Sierra Leone
Competitive Landscape in Africa
 MTN: Launched in Aug 2005, MTN-Mobile
Banking allows users to check balance, view bank
statements and transfer money. MTN charges
USD 1.90 per transaction
 Vodacom: Launched in Aug 2005, Vodacom-
PayPoint allows users to accept payments from
credit cards. The service costs USD 6.44 per
month
South Africa
 Maroc Telecom: Launched in Jan 2010, Maroc
Telecom is the first M-Payment service in
Morocco. The service allows money transfers and
bill payments through mobile phones
Morocco
 MTN: Launched in 2009, MTN Mobile
Money service in Uganda allows users to transfer
money. For money transfers above USD 5, MTN
charges USD 0.40 per transaction. MTN had
100,000 customers as of Sep 2009
 Zain: Launched its M-Payment services – ZAP in
Uganda (2009) and in Niger, Malawi and Sierra
Leone (2010). Zap enables customers to
transfer money and manage bank accounts
Uganda, Niger, Malawi and Sierra Leone
 Glo Mobile: Launched in Mar 2005, Glo M-
Banking allows users to access bank accounts,
transfer money and buy airtime at a flat rate of
USD 0.27 per request
Nigeria
 Millicom Mauritius: Launched in 2009, the Emtel
Mobile Banking service allows users to conduct
bank transactions through their mobile phones
Mauritius
 Safaricom: Launched in Mar 2007, Safaricom’s M-
PESA allows users to access bank accounts and
transfer money. Safaricom charges USD 0.37 for
money transfer of up to USD 440 to a registered
M-PESA user. It had 8.5 million customers
as of Nov 2009
 Zain: Launched in Feb 2009, Zap allows users to
transfer money and manage bank accounts.
Transaction fees of USD 0.13 are charged for
the transfer of money between Zap accounts
Kenya
 Vodacom: Launched in Apr 2008, Vodacom’s
M-PESA enables customers to transfer money.
Vodafone charges transaction fees up to USD 0.14
for transferring funds to a registered customer
 Zain: Launched in Feb 2009, Zain-Zap allows
users to transfer money and manage their
bank accounts
Tanzania
 Vodafone: Launched in 2007, Vodafone Mobile
Banking allows users to access bank accounts and
transfer money. Vodafone does not charge fees for
transferring money. However, it charges a 2%
transaction fee for recharging the M-Wallet
account
Egypt
Note: Pricing details are represented in USD using on-date conversion rate from oanda.com
Source: Value-Added Service and Applications’, GSA, Jan 2009; ‘Implementing successful millionT initiatives’, Octopus Consulting, Sep 2009; Zain; Primary Interview with
customer care executives of telecom operators

Table of Contents
 Business Models
 Case Studies
 Challenges

Business Models
Introduction to the Value Chain
Three business models for M-Payment services have emerged; each differs based on the type of organization
that plays the role of Issuer, Acquirer and Payment Network
Business Model Role of Acquirer Payment Network Role of Issuer
Operator-Centric Mobile Operator Mobile Operator Mobile Operator
Financial Institution-Centric Financial Institution Financial Institution Financial Institution
Collaboration Mobile Operator or Financial Institution Financial Institution Mobile Operator or Financial Institution
Key Business Models – M-Payment Services
A
Key Parties and Their Role in an M-Payment Transaction
 Payment networks connect and switch
transactions between the acquirer and the
issuer
 Acquirers provide Point of Sale
equipment to the merchant and charge
the issuer for the transaction
 Upon receipt of payment, acquirers
credit merchants’ accounts
Customer
 Customers initiate the purchase
or transaction through the mobile
application/solution/SMS
Customers receive funds on their mobile
phones. They buy credits through
the purchase of a ‘pre-paid
balance’ or receive a charge in
their mobile bill
Transaction / Purchase
 Merchants accept payments from
customers and record them through
Point of Sale equipment (reader or a
mobile phone)
 New technologies such as ‘Near Field
Communication’ enable customers to
use their mobile phone as a smart card
B
C
Issuer
(Bank/
Mobile
Operator)
 Issuers provide credit (M-Wallet) to
customers on their mobile phones and
manage their accounts
Merchant
Payment Network
(Bank, mobile operator or financial
institution such as Visa/ MasterCard)
Acquirer
(Bank/ Mobile
Operator)
http://www.movotek.coom
MOVOTEK

Business Models
Operator-Centric Model
Customer Merchant
M-Wallet Provision by
Mobile Operator
or
Customer conducts a transaction
using a mobile phone
Mobile Operator (Acquirer +
Payment Network + Issuer)
Merchant
transfers
transaction
information
Operator adjusts customer’s mobile
balance or charges the customer on
his/her bill
Customer has the
required credit on
his/her mobile
phone
Customers go to the mobile
operator’s agent to receive a mobile
balance in exchange for cash
Operators charge customers for
transactions via their mobile bill
Operator
credits
merchant’s
account
1
2
The Operator-Centric Model is particularly attractive in countries with weak a financial services infrastructure,
because the telecom operator manages the entire M-Payment value chain
Source: ‘Proximity Mobile Payments Business Scenarios: Research Report on Stakeholder Perspectives’, Smart Card Alliance, Jul 2008; ‘The M-commerce reality in the
MEA’, Comm.ae, Feb 2009
Operator-Centric Model
 In the ‘Operator-Centric Model’, the telecom operator manages the entire M-Payment value chain
• The operator plays the role of acquirer, payment network and issuer. The operator is also responsible for providing the Point of Sale (POS)
equipment to merchants
 Examples: NTT DoCoMo FeliCa (Japan); G-Cash (Philippines), Mobipay (Spain), M-PESA (Kenya)
 Key Features:
• The operator leverages its existing infrastructure, customer base and experience in managing a wide distribution network
» Operators can adopt this model in developing markets such as the MEA where there are large volumes of micro-payments (low-risk
associated with such payments)
• Since operators are managing the entire value chain, they need to make significant investments in POS equipment and customer service for
merchants
A

Business Models
Financial Institution-Centric Model
Financial Institution-Centric Model
Customer has the
required credit
on his/her mobile
Customer Merchant
Customer conducts
transaction using the mobile
Acquirer (Bank / Financial
Institution)
Payment Network (Bank/
Financial Institution)
Issuer Bank
Information is transferred
through payment network
Issuer charges the customer
for the purchase
Issuer transfers payment
Payment is transferred
Acquirer credits the merchant’s account
The Financial Institution-Centric Model works well in markets with an established and trusted financial
infrastructure
Source: ‘Proximity Mobile Payments Business Scenarios: Research Report on Stakeholder Perspectives’, Smart Card Alliance, Jul 2008; ‘Mobile Commerce in MEA: A
Current Reality’, Delta Partners, Jan 2009; ‘DOCOMO to Launch Mobile Remittance Service’, NTT DOCOMO, Jul 2009
B
M-Wallet
Provision
Customers’ banks
provide the M-Payment
application on mobile
phones or enable the
customer to conduct
transactions via their
mobile phone
Merchant transfers the transaction
information using the POS equipment
provided by the acquirer
Acquirer transfers transaction
information to the network
 In this model, banks and financial institutions are the only parties involved in processing the transaction and transferring funds
• The acquirer and issuer bank may or may not be the same
 Banks are responsible for providing customers with the M-Payment application/solution on their mobile phones and deploying Point of Sale
equipment with the merchant
 Examples: MasterCard’s Pay-Pass
 Key Features:
• Mobile operators are not involved in the process, except for the use of the mobile network (SMS/WAP)
• The model reduces cash and check handling and improves customer loyalty for banks; customers benefit from improved transaction
security since banks are involved
• This model does not work in markets with poor banking penetration or for customers that do not have a bank account
• Banks need to incur an additional cost for installation and maintenance of the mobile application, sometimes on multiple networks

Business Models
Collaboration Model
Collaboration Model
 In the Collaboration Model, services across the value chain are distributed between telecom operators, banks and other financial institutions
such as MasterCard and Visa
 Examples: South Korean SK Telecom’s Moneta service launched in association with financial services companies such as Visa
 Key Features:
• Leverages the core competencies of financial institutions (credit and risk management) and telecom operators (mobile application and
transaction)
• Telecom operators do not need to take on the financial risk
• Investment and revenue are shared among stakeholders
• This model is effective in areas with low bank penetration, as the mobile operator plays the role of the issuer
M-Wallet
Provision
Banks or mobile
operators provide the
M-Payment
applications on
customers’ mobile
phones or enable
customers to conduct
transactions via their
mobile phones
Customer Merchant
Customer conducts
transaction using their mobile
Acquirer (Mobile Operator/
Bank
Merchant transfers the transaction
information using the POS equipment
provided by the acquirer
Payment Network (Bank/
Financial Institution)
Issuer (Mobile
Operator/Bank)
Transfer of information
Issuer transfers payment Transfer of payment
Acquirer credits merchant’s account
Source: ‘Proximity Mobile Payments Business Scenarios: Research Report on Stakeholder Perspectives’, Smart Card Alliance, July 2008; ‘Mobile Commerce in MEA: A
Current Reality’, Delta Partners, Jan 2009; ‘DOCOMO to Launch Mobile Remittance Service’, NTT DOCOMO, Jul 2009; FINsights
Customer has
the required
credit on
his/her mobile
Issuer charges the
customer for the purchase
C
Acquirer transfers transaction
information to issuer
The Collaboration M-Payment Model adapts to suit the requirements of different geographies. Telecom
operators and financial institutions distribute the transaction-enabling roles (acquirer, issuer, etc.) as
appropriate for the market

Table of Contents
 Business Models
 Case Studies
 Challenges
http://www.movotek.com

Case Studies
Safaricom’s M-PESA in Kenya – A Success Story
M-PESA revenue grew 750% from USD 5.61 million (KSH 0.37 billion) in FY083 to USD 42.54 million (KSH2.93 billion) in FY093
Overview
M-PESACustomers(million)
 Launched in Mar 2007, M-
PESA is the M-Payment
solution offered by Kenya’s
major telecom operator,
Safaricom, in association with
Vodafone
• It was a initially a pilot
project funded by Vodafone
and UK’s Department for
International Development
 Services Offered: M-Wallet
services, money transfer,
withdrawal of money received
through M-PESA, mobile top-up
and bill payment for Safaricom
customers
 M-PESA customers can also
receive money from senders in
the UK
MonthlyM-PaymentTransfers
(USDmillion)
Conducive Market
Conditions
Low Cost Accessibility Security
 ~23% of the population had
bank accounts; while the mobile
penetration was ~40%
 M-PESA is cost effective,
compared to other alternatives
• 27% less expensive than
the post office’s PostaPay
 Wide network of over 14,000
agent outlets2
 Strong security features
including PIN protection and
value recovery in case of phone
loss
1 2 3 4
Success Factors
0
2
4
6
8
10
0
100
200
300
400
Apr-
07
Jan-
09
Jan-
08
Nov-
09
Key Performance Indicators
Note: 1The data is represented in USD using on-date conversion rate from oanda.com; 2As of Nov 2009; 3Financial year ending Mar 31
Source: ‘Safaricom Website’; ‘M-Payment surging ahead – Arthur D. Little’; ITU
M-PESA, which follows the Operator-Centric Model, has been a huge success in Kenya. With over 8 million
subscribers, it accounted for more than USD 300 million in monthly M-Payment transfers in Nov 2009
No. of M‐PESA Customers (million)
Value of M-Payment
Transfers (USD million)1

Case Studies
Me2U Zain Wallet in Bahrain – An Emerging Story
Zain had ~686,000 active mobile phone subscribers in 2008; This indicates significant untapped potential for the operator in the
mobile payment services segment
 In Nov 2008, Zain launched a mobile financial
transaction service, Me2U Zain Wallet, in Bahrain
• Zain Wallet, operates in collaboration with MODE
Bahrain1 (financial institution partner) and enables
users to transfer money domestically and
internationally
» The payment interface of Zain Wallet uses
SMS, sent from the SIM Menu
• The product is available at Zain outlets, under the
Zain brand
• Immigrants account for ~30% of the Bahraini
population, so the potential for international
remittances using mobile phones is high
 Services Offered: Domestic and
international remittances; top-up
prepaid account; balance inquiry;
money withdrawal or deposit at
selected Zain or Nonoo exchange
branches
 Geographic Scope: Bahrain
• International money transfers can
be made to 32 countries
 Challenges: Low education and
awareness among customers may
prove to be a constraint
Low Cost Accessibility Security
 Free monthly subscription; domestic funds
transfer/payment costs USD 0.13;
international remittances start at USD 2.66
• No charge to open a Wallet account
 19 Zain and Nonoo branches throughout
Bahrain
• Looking to expand the number of outlets
in the future to reach untapped areas
 High security features such as PIN
protection and account blocking on phone
loss
1 2 3
Factors that may contribute to the greater adoption of Me2U Services
Current Me2U Service Distribution, 2009a
30%
50%
Payments
20%
Remittance
Airtime
Purchase
Note: 1MODE Bahrain is a money transfer company, owned by BMI Bank and Nonoo Exchange
Source: ‘Zain Bahrain’; aPrimary Research with industry experts/personnel; Grail Research Analysis
Overview
Me2U Wallet, Zain’s M-Payment service in collaboration with MODE Bahrain, had between 3,000 and 4,000
subscribers in 2009. Low-cost and strong security features are expected to drive continued growth
(Total Me2U subscribers: 3,000-4,000)

Table of Contents
 Business Models
 Case Studies
 Challenges
http://www.movotek.com

Note: ‘Know Your Customer’ refers to a regulation that requires banks and financial institutions to verify the identities of their customers
Source: ‘Mobile Banks face Challenges in Africa’, Wireless Federation; ‘Mobile Banking: Knowledge Map and Possible Donor Support Strategies’, InfoDev; ‘Consumer
Protection a Key Issue for Branchless Banking’, CGAP, Mar 09
Challenges
Barriers to Growth of M-Payment in the MEA Region
 A large segment of the population in the MEA is not comfortable with the use of technology
• Service providers will need to invest in simplifying the technology and interface, and in educating
customers
Lack of
Technological
Sophistication
Among Customers
Challenges in the MEA M-Payment Market
 The regulatory framework for financial transactions via mobile phones is currently not well developed
• As regulations evolve, M-Payment service providers may have to comply with stricter controls such
as ‘Know Your Customer’ requirements (to prevent money laundering, terrorism funding, etc.), which
may add costs and slow adoption
Regulatory Barriers
 A wide distribution network of agents is critical to success in this market, but setting up and maintaining
such a network can be difficult and costly in a number of MEA countries
 Low start-up costs and an attractive commission structure for their network of agents will be critical for
service providers as they look to develop and maintain distribution networks
Distribution
 Some M-Payment service providers require customers to have a bank account, which limits the potential
for services within the unbanked population, an important customer segment for growth
 In addition, some service providers concentrate on existing bank customers rather than going after the
unbanked population ,who are most in need of services like M-Remittance and M-Money for retail
purchases
Mandatory
Requirement of
Bank Accounts (by
Some M-Payment
Networks)
While the MEA M-Payment market opportunity is significant, telecom operators face adoption, distribution and
regulatory challenges

For More Information Contact:
Grail Research
(info@grailresearch.com)
Copyright © 2010 by Grail Research, LLC
No part of this publication may be reproduced, stored in a retrieval
system, or transmitted in any form or by any means —
electronic, mechanical, photocopying, recording, or otherwise — without
the permission of Grail Research, LLC

Email: info@movotek.com
Web: www.movotek.com

0
Turn-key Solution Provider
Prepaid Airtime Voucher distribution Solution, Mobile Money Transfer Solution, GPRS POS, Handheld POS,
POS Device, POS Machine, POS Terminal Provider.
2013

Movotek Innovations Limited. info@movotek.com www.movotek.com 1
Mobile Money/Money Transfer
Money Transfer
Movotek has rich industry experience using POS (Point of Sale) terminals for money transfer solution while many developing
countries are only filled with cellphones. Without a doubt, POS terminal has its unique advantage for money transfer solution
due to receipts/slips printing functionality. When the point of sales is deployed at retail outlets and after each transaction, it
can print out the mini statement in duplicate so that both the merchants and end users can have transaction receipts/slips in
place.

POS Terminal for money transfer
Movotek is headquartered in Hong Kong which enables us to offer you Made-in-China terminals to enhance product cost
performance.
Money Transfer, also referred to as mobile money, mobile money transfer, mobile payment, and mobile wallet generally refer
to payment services operated under financial regulation and performed from or via a mobile device. Instead of paying with
cash, check, or credit cards, a consumer can use a mobile phone to pay for a wide range of services and digital or hard goods.
Although the concept of using non-coin-based currency systems has a long history, it is only recently that the technology to
support such systems has become widely available.
In developing countries mobile payment solutions have been deployed as a means of extending financial services to the
community known as the “unbanked” or “underbanked”, what Movotek doing here is to serve the unbanked people.
Features of using POS (Point of Sale) terminals for money transfer solutions:
1. Handy as cellphones
2. GPRS (TCP/IP), USSD, STK, SMS, etc.
3. Built-in thermal printer
4. Multi-functional for not only money transfer but also bill payment, mobile top-up, ticketing, lotto, betting, etc.
5. Secondary software development and remote update (over-the-air).

Prepaid Airtime Voucher Distribution
Prepaid Airtime Voucher Distribution
Prepaid Airtime Voucher Distribution (also known as Electronic Voucher Distribution System, EVD, E-Voucher Distribution, PIN
code distribution, PIN Voucher, mobile top up, airtime top up, e-topup, mobile reload) has dramatically become an essential
commodity for the emerging markets and truly the unbanked areas in the globe. It is one of the value added services that is of
paramount importance for retailers/merchants to provide their customers. No physical airtime stock (vouchers/scratch cards)
is kept on-site, reduction in risk of theft.
Prepaid Airtime Voucher Distribution enables the vending of Prepaid Airtime for retailers and offers airtime vouchers from all
network operators via its mobile carriers. Not only does it provide the opportunity to earn revenue from a new product stream,
Prepaid Airtime Voucher Distribution is able to draw new customers into the stores/outlets.
Movotek Innovations has the ability to apply diversified Prepaid Airtime Voucher Distribution onto POS (Point of Sale)
terminals by the leading providers such as Ingenico, Verifone, PAX and many more, although each brand works on respective
Operating Systems and Software Development Kits.
With our professional team having years of experience in programming airtime applications, Movotek Innovations is capable
of delivering tailored apps with customized features to customers within 3 weeks’ time.
Movotek mobile top up solution

Mobile Operators Benefits:
Reduces Operating Expense significantly
Increase the number of point-of-sales without involving distributors
Replace the Scratch card and Increase transaction revenue
Low cost PIN Voucher Distribution
End Customers Benefits:
Fast, simplified & flexible transactions
User Privacy management
Freedom to choose any transaction value
Simplified remittance orders, utilities payments and mobile commerce
Guaranteed QoS and Rich user experience
Retailers/Outlets Benefits:
No inventory, no equipment investment (cellphone is enough)
Diversified and dynamic mobile portfolio
m-Payment point-of-sales (POS Terminal)
Simple operations, no training required
Movotek Prepaid Airtime Voucher Central Platform Features:
Multi-channel network access (USSD, SMS, GPRS, Web)
Multi-level distribution management
Location based retail management
Multi-Handset operation of single retail account
Multi-Distributor feeding of single retail account
Customizable credit and PIN transfer flows
Unlimited denominations and transaction values
Retailer self care, self registration and self inventory
Reconciliation and audit options
Low stock and low retail balance alerting
USSD and SMS transaction notifications
USSD Menu Driven
Flexible customizable front end software for POS, Cellphone, PC etc.
Customer Care API
Movotek Keywords: Electronic Voucher Distribution, Electronic Voucher Distribution System, e-voucher distribution system,
e-voucher management system, e-topup, e-top up, e-top up solution, e-top up system, epin software, epin system, eprepaid,
e-recharge, e-recharge software, Mobile Recharge, mobile recharge system, Mobile top up, mobile top up software, voucher
top up, prepaid top up, prepaid airtime top up, top up recharge, prepaid card system, POS Mobile Money Transfer, Prepaid
airtime, Prepaid airtime Voucher Distribution, Loyalty Programs, POS Bill Payment, POS Terminal, POS Printer, POS Machine,
top up terminal, prepaid vending machine, prepaid airtime machine, prepaid airtime vending machine, prepaid
airtime POS terminal, airtime machine.

POS Terminal MIL300
This POS Terminal MIL300 is designated as the low cost all-in-one POS model, which is our hot selling POS Terminal model, it
can be integrated with all the solutions that Movotek is offering now. It is the mainstream configurations with ARM9
Processor, high speed thermal printer. MIL300 has streamlined and modular design. NFC/RFID, Barcode scanner are optional
for this POS. POS Terminal MIL300 is the ideal model for the customers who would like to carry out multiple business in just
one POS Terminal with low cost.
Movotek POS MIL300 Solutions
Features
Ergonomic design, backlit display, large keys, handheld or desktop usage
Cost-effective design
Quad-band GPRS Communication
C-based SDK for secondary development
NFC (Mifare)

MIL300 Airtime POS features
Specification
Processor ARM9 32-bit
Memory 8 MB Flash, 16 MB SDRAM
Display 128 x 64 pixel graphical (white backlight) LCD
4 lines x 21 characters
Keypad 20 keys
Thermal Printer 18 lines/second; paper roll size 58mm x 30mm
Interface 1 RS-232, 1 USB
Card Reader NFC/RFID (Optional)
Communication GSM/ GPRS/SMS: 850/900/1800/1900 MHz
Battery Li-ion Polymer, 7.4V, 1500mAh
Voltage AC input 100 – 240 VAC, 50/60 Hz; DC Output 9V
Operating Temperature 0°- 40°, relative humidity: 5% – 90%
Dimensions 185 mm*90 mm* 53 mm (L*W*H)
Solutions
- Mobile Top-up, Electronic Voucher Distribution, Prepaid Airtime, PIN Voucher Distribution
- Membership / Gift Card (Loyalty Programs)
- Bus Ticketing, Policy Station, Logistics, Inventory Management
- Money Transfer, Mobile Payment, Mobile Money
- Utility (Electricity, Water, Gas) Payments
- Mobile Banking Solutions, Micro Finance, Micro Loans, Micro Insurance, etc.
- Gas Stations, Hotels, Metro, Cab Companies, Exhibition Fairs, Bus Transit Systems, Retail Stores, Chain Stores, etc.
Download: POS Terminal MIL300 Specification

POS Terminal MIL300 Keywords–
PIN code distribution devices, airtime machines, mobile reload point of sale, electronic payment terminals (EPT), prepaid
airtime machines, electricity and airtime vending machine, prepaid airtime vending machines, mobile pos device, prepaid
airtime vending machine, prepaid airtime machine, airtime vending machines, airtime vending machine, airtime printer,
airtime vending, prepaid vending machine, mobile recharge machine, USSD airtime top-up, USSD airtime recharge, STK
airtime recharge, STK airtime top-up, prepaid airtime terminals, prepaid airtime terminals, airtime voucher machine, mobile
top up machine, prepaid terminals, airtime machine, airtime terminals, prepaid airtime terminal, prepaid airtime terminal,
airtime pos, e top up terminals, point of sale, mobile vending machine, pos on mobile, voucher vending machine, voucher pos,
top up terminal, mobile money, money transfer.

Mobile payment opportunity in the midle east and africa(mea) region

Recommandé

Recommandé

Contenu connexe

Dernier

Dernier (20)

En vedette

En vedette (20)

Mobile payment opportunity in the midle east and africa(mea) region