1. Increasing traction in Mobile
Wallet Systems in Emerging Asia
Naveed Ahmed Choudhury
Head of M-Commerce, Citycell
(a JV of SingTel & Pacific Telecom Bangladesh)
October 09,2012

2. Outline
•Developing traction
•Effective distribution networks
•M-wallets
•Transaction limits
•Types of transactions for m-wallets
•Incentivizing customers to use
channel
www.citycell.com c2008. Pacific Bangladesh Telecom Limited. All Rights Reserved

3. Bangladesh: the market
•Population>160 million.
•GDP : US $ 282 billion (PPP)
•GDP/capita: US$1970 (PPP)
•Only 13% have access to
Banks.
• However, mobile
subscribers >90 million*
• The unbanked population is
54 million
There fore, there is a huge opportunity to
provide access to banks through Mobile phones.
www.citycell.com c2008. Pacific Bangladesh Telecom Limited. All Rights Reserved

4. Remittance
– International remittance Migrant remittance inflows to
accounts for 10% of national 12,000
Bangladesh
GDP.
10,000
– Channels:
• Formal: Banks, Money transfer 8,000
organizations, Postal services etc.
6,000
• Informal: Hundi or hawala, hand
delivery, travel agencies etc. 4,000
– Existing channels are 2,000
• Costly
• Time consuming can simplify remittance receiving.
M-Commerce
0
2005 2006 2007 2008 2009 2010
• Bureaucratic etc. Migrant remittance Inflows (US$ million)
Source: worldbank
www.citycell.com c2008. Pacific Bangladesh Telecom Limited. All Rights Reserved

5. • Citycell pioneered launch of Mobile Banking
partnering with a local Bank.
• As per regulatory frame work, Banks have
ownership of product, pricing, campaigns etc.
MNO provides retailers and network.

6. The key players
•22 Banks given approval.
•DBBL, partnering with Citycell
first bank to launch M-
Commerce in March 2011.
• Fourteen launched M-
Commerce till date.
•The top players:
•Bkash 56%, DBBL 41% &
Others<3% market share.
www.citycell.com c2008. Pacific Bangladesh Telecom Limited. All Rights Reserved

7. Increasing traction
•Partner bank’s M-Banking accounts *
•From March 2011 to March 2012: 172,000
•Accounts created in September 2012: 150,000+
•Retail footprints
•Over 13500+ points
•Offerings:
•Started with basic services account opening,
cash-in and cash out
• Expanding into services with Interoperability
*source: Financial express and market intelligence
www.citycell.com c2008. Pacific Bangladesh Telecom Limited. All Rights Reserved

8. Driving traction • Nation wide Retail footprint
• Focus in unbanked areas
• Retailer friendly business
model
Distribution • Retailer engagement
activities
Beachhead
Communication
services
• Started with basic • Customer awareness
• Retailer training & awareness
services
• Launched services Traction
which ACTUALLY
addresses current
problems
www.citycell.com c2008. Pacific Bangladesh Telecom Limited. All Rights Reserved

9. Transaction types & limits
•Currently existing types:
•P2P
•B2C
•G2C
•Limits
•5 transactions/day
•Maximum amount: Tk 50,000 or US$ 600/day
•Maximum amount/transaction: US$ 240
www.citycell.com c2008. Pacific Bangladesh Telecom Limited. All Rights Reserved

10. Using channel:incentivizing customers