4. The main drivers causing non-users to become users and users to switch between payment service providers
5.
6. Lenses Personal payment instruments Money transfer (MT) Bills payment (BP) Loan payments (LP) Payment methods PSPs Formal PSP—banks, pawnshops, remittance agents, mobile money Informal PSP—friends, driver, etc Direct pay At biller payment center Population Payers: Made a payment in last 12 months Non-payers: Did not make a payment in this period
7.
8. Main PSPs used are pawnshops (ML, Cebuana L. & other), Western Union, LBC and the bank transfer services
15. 76% of the users are classified under Class D (poor), while 19% belong to class E (very poor) and 5% to Class ABC (upper and middle classes)
16. Most households where they live have electricity (96%), cellular phones (71%) and running water (80%)Other information: 32% of users indicated they were willing to pay PhP 50 (median) for remote bill payment services, e.g. via mobile phone or messenger 24% report receiving money from abroad in the last 12 months 7% of total users then on-send money to others (median: PhP 3,000)
28. Conjoint analysis was used to quantify consumer preferences via ratings of generic payment services Four attributes: speed, price, convenience and security Each with two values, creating 16 possible combinations Consumers were asked to rate a series of payment services 1-100
29. Findings: Price sensitivity analysis Using a series of price-fairness questions, it was possible to calculate a acceptable price range for different sizes of transactions:
31. Conclusions The Filipino domestic payments market is highly competitive and maturing Awareness of PSPs is high but knowledge and usage of mobile banking products and services are low Users of informal service providers are a stable, geographical market The demand for national domestic payments is significant, but little unmet need
32. Full report is available at http://www.bankablefrontier.com/assets/pdfs/ BMGF.PDP-FinalReport-dec2010.pdf
44. How things stack up Users Deciding Formal and Informal Q 1000 Users Populationrepresentative Bill Pay, Money Transfer & Loan Payment Payment Type Personal Direct, Informal & Formal Payment Payment Method Personal Direct Payers 228 Non-Deciders 57 Users 1000 Non-Payers 509 All Adults Sampled and Interviewed 1794 HouseholdsInterviewed 4 814 Houses Approached Not to scale
45. Reasons Given by Non Payers Base 28% of population N=1,794 Q5: Why did you NOT send money or pay bills or a loan in the last 12 months (multipleresponses)?
51. National Adult Survey of UsersUsers decide which payment method and provider they will use1000 Payment Deciders
52. Users are: Made a remote payment in the last 12 months Used Informal or Formal payments methods Were involved or made the decision of which payments service provider PSP to use Money Transfer and Bill Pay examined
56. Conjoint analysis quantifies consumer preferences via ratings of generic payment services Consumers asked to rate a series of payment services 1-100 Four attributes: speed, price, convenience and security Each with two values, creating 16 possible combinations (e.g.):