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© Copyright Comviva Technologies Limited. 2013

CTO Forum 2014 – Dhaka, Bangladesh

Capitalising on the Mobile Commerce Revolution

Kamaljeet Rastogi


What is the potential for Mobile Commerce?

Commerce done using Mobile phones and related technologies

Mobile Commerce will become bigger than E-Commerce

Central Banks prefer less Cash economy - Banks, Telecom

Operators and Retailers need to work together

The burden of cash usage on society is substantial. Almost

1.5% of GDP


Levers to displace cash

More

Merchants

More

Consumers

More

Volume

More

Transactions A

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Fin

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AFFLUENT

MASS MARKET

UNDER-SERVED UNDER-BANKED

MOBILE WALLET

MOBILE WALLET / BANKING

MOBILE MONEY

• Driving speed and convenience of making payments

• Secure mobile wallet with payments, couponing, loyalty and ticketing integration

• NFC, QR, BLE and HCE for smart phone based payments

• Electronification of Cash • Driving Financial Inclusion • Domestic/International Remittance • Use of USSD, SMS, STK and IVR

Product Offerings

Target Segments

Mobile based solutions

For all consumer segments...

Segment Solution


Tanzania: Operator-led model

- 5

10 15 20 25

Tran

sact

ion

(M

n) Number of transactions

Number of Transactions

0% 5%

10% 15% 20% 25% 30% 35%

Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12

Pen

etra

tio

n (

%) Service penetration

Service penetration

213 million transactions in a year 33.8% service penetration

Market Scenario

Demand for MFS

Mobile operators: 7

Mobile penetration: 54%

Unbanked population: 87%

Need for affordable and faster domestic money transfer

Most urban youth send money back home

Informal channels (buses, courier men) transfer money

High commission: 10% of transfer value

Informal channels take 2 to 3 days to transfer money

Services: domestic money transfer and bill payments

Success indicators: >30 million transactions per month

Agent Network: >14,000 channel members

Perceived value: affordable, faster and safer

Consumer Uptake

Airtime Top-up

32%

Domestic remittance

14% Cash-in

16%

Cash-out 15%

Bill payments

2%

Others 21%

Transaction

30 million monthly transactions


Zimbabwe: Operator-led model

Mahindra Comviva’s mobiquity™ powered EcoCash extends a

convenient multipurpose retail payment solution to consumers

mobiquity™ equips customers with a mobile wallet account to

pay for goods & services, pay for transport services, transfer

funds and receive salaries

Market scenario

Our solution

Customer uptake

With 25% banking penetration, Zimbabwe is a cash-intensive

economy

Following Zimbabwe’s switch to the USD in 2009, and

enforcement of a minimum USD 1 denomination,

Zimbabweans face an acute shortage of change

1.98 million customers (27.6% of the total base) uses EcoCash

20 million transactions were handled by mobiquity™ in August

2014.

Merchant payments, bill payments, remittance and airtime top

up constitutes 50% of total transactions

Mobile Money transactions now valued at 43% of the GDP

1.10 1.50 1.85 1.98

17.2% 22.2%

26.4% 27.6%

0%

10%

20%

30%

0

1

2

3

Mar-12 Jun-12 Sep-12 Nov-12

Serv

ice

pe

ne

trat

ion

(%

)

Cu

sto

me

rs (m

n)

EcoCash customers (million)

EcoCash service penetration (%)

EcoCash customers and service penetration

1.1 1.6 2.5 3.1 0.9

0.9 1.2

1.4 $37.9

$58.0

$84.9 $96.5

0

25

50

75

100

0

2

4

6

Aug-12 Sep-12 Oct-12 Nov-12

Tran

sact

ion

val

ue

(USD

mn

)

Tran

sact

ion

vo

lum

e (m

n)

Fund based transaction volume (mn)

Non fund based transaction volume (mn)

Total transaction value (USD mn)

EcoCash monthly transactions volume and value

Airtime top up

35%

Bill payments

3%

Merchant payments

3% Cash in

9% Cash out

8%

Domestic remittance

9%

Salary transfer

1%

Account manageme

nt 32%

EcoCash transaction segmentation


India: Bank-led model

Leading International bank in India

Sole reliance on the ‘bank branch route’ limits

services accessibility

In India foreign banks are allowed to open only

12 retail branches in a year

Broad base reach and extend convenient access to

banking services

Approximately handles 60,000 transactions monthly

70% of total Hello Money users actively use services

every month

Average number of transactions per active customer

equals 6.16

Business need

Our solution

Customer uptake

Deployed Mobile Banking to overcome supply

constraints and extend convenient banking services

Branded ‘Hello Money’ the service allows customers to

conduct fund-based transactions (pay bills, transfer

money to own and third party account as well as non-

fund transactions)

Quality of Experience

Personalized Services

Convenient banking access


Mobile Wallet

A mobile wallet replicates the

physical leather wallet

Open wallet supports: Bank Accounts; Cards: Credit, Debit, Prepaid; Cash: Stored Value Account

Allows both proximity and remote payments Supports an integrated

basic loyalty program

Allows promotions, coupons to be configured

Can be integrated to data warehouse for BI

Mobile Payments

Mobile Application

QR Code

NFC

Add on

Collect Loyalty Points

In-Application Location Based Ads


Mobile Wallet Platform

PAYMENT INSTRUMENT SUPPORT

ACCESS CHANNEL SUPPORT

TECHNOLOGY SUPPORT

Cards: credit, debit, prepaid

Bank Accounts

Stored Value Accounts

Mobile

Web

NFC

QR

App Based

PAYMENTS

Proximity

Remote

• NFC based payments • Merchant generated QR

• In App Purchase: Ticketing and Reservations • Bill Pay through QR • Mobile/Web Checkout • Virtual Shopping

ADMIN MODULES

Admin User Management

User Management

Create User Create Group Create Roles

Merchant Provisioning

Consumer Management

Maker Checker Setup

Limits and Thresholds

Reporting

O&M

VALUE ADDS Couponing

Loyalty

BLE

HCE


• Enable Consumers to interact

and Place Bets Anytime

Anywhere

• Customer can leverage Smart

phone app to view product

details

• Customer can place orders by

looking at specifications and

prices in the app

Smart Posters: Smarter way to Interact

Capturing customer’s attention @ right place @ right time


Using geo-fencing for location specific Notifications

Location Based Promotions

Always Auto Open Tab

Utilizing GPS Information and Geo-fencing capabilities to push Real-time location based offers and promotions

Customer opt-in combined with Offer analytics will enable the delivery of offers that match customer needs and enable a cost effective marketing channel for merchants


2-3M 3-10M 70M

Bluetooth Notifications

Minimal Expense: USD 30 / beacon

Hassle free & seamless pairing

Single Coin Battery for 2 years

Proximity Payment

Location based offer

Check in / Check out

Create Multiple Zones around Beacon


Remote Payments: Bill Pay through QR

Scan QR on physical or digital bill

Supports one-click pay: Confirm payment through default payment card


Security Practices for Mobile wallet platform

Mobile Wallet Security

OWASP Classified Vulnerabilities Prevention for Web Applications

PCI DSS Data Security Compliance, Tokenization

Web Services Security – XML Injection Flaws prevention, message level encryption, AML for B2B Authentication

2-Factor Authentication

Lost Mobile Device Handling

OS, Database & App Server Hardening

DB Security • Schema Separation – separation

of business entities and transaction data

• Transparent Data Encryption and database Vault

Security integrated with SDLC – threat modeling, source code scanning &

penetration testing


Case Study: Merchant Acquired & Bank

Large enterprises

• ICICI Prudential (leading life

insurance company)

• Essel World (India’s largest

amusement park)

• Quickr (India’s largest online and

mobile classifieds portal)

Small & mid size retailers

• Lotmobiles (multi-brand mobile retail

chain)

• Includes multiple travel agencies,

jewelers, opticians, photo studios,

electronic store & educational

institutes

Micro-merchants • Includes multiple chemists,

departmental stores and garment

stores

Merchants

on-board

Opportunity

in India

12 million retailers 1 Million+ POS devices Around 368 million credit & debit

cards Source: RBI

Watch the payPLUS Merchant Video at Mahindra Comviva_s payPLUS.mp4

“The app is very easy and simple to use”

MB Photo Studio,

Bangalore Test

imo

nia

ls

Nimmi Nutrition & Slim zone, Hyderabad

“Simple to use. I have started referring this solution to my

friends who have problems of accepting payments on field”

As per Comviva survey of i.pos merchants: 80%+ merchants have rated the app highly on usability 72% merchants have referred i.pos to others

Mahindra Comviva_s payPLUS.mp4





A Day in the Life Of..

Picks up a coffee & newspaper –

pays via mobile using NFC

Pays for the taxi ride to work using

NFC

During a break at work - buys movie

ticket s for the weekend using Mobile

App

Joins a colleague tor lunch, splits the

bill via mobile using NFC

Sees a poster advertising headphones and

adds it to his wish-list – QR Code

Passes a store and gets an offer for the

headphones via BLE.

Decides to buy and redeems the offer using NFC

Takes a metro back home and pays

using NFC

During the ride back home, downloads

his favorite music (through mobile app)

and pays through wallet

At breakfast:, pays

his electricity bill using wallet and QR code on the bill


Mahindra Comviva: Leader in Mobile

Commerce

THANK YOU

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