the opportunity of m banking to popularize payment services l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
The Opportunity of M-banking to Popularize Payment Services PowerPoint Presentation
Download Presentation
The Opportunity of M-banking to Popularize Payment Services

Loading in 2 Seconds...

play fullscreen
1 / 18

The Opportunity of M-banking to Popularize Payment Services - PowerPoint PPT Presentation


  • 363 Views
  • Uploaded on

The Opportunity of M-banking to Popularize Payment Services. David Porteous "Exploring Frontiers in Payments Systems" Washington DC 31 May 2007. Contents. The Opportunity The Hype The Reality The Opportunity re-examined. Finland. South Africa . Philippines. Kenya.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'The Opportunity of M-banking to Popularize Payment Services' - Gabriel


Download Now An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
the opportunity of m banking to popularize payment services

The Opportunity of M-banking to Popularize Payment Services

David Porteous

"Exploring Frontiers in Payments Systems"

Washington DC

31 May 2007

contents
Contents
  • The Opportunity
  • The Hype
  • The Reality
  • The Opportunity re-examined
1 the m banking proposition

Finland

South Africa

Philippines

Kenya

1. The m-banking proposition

100%

97%

% mobile phone penetration

50%

  • 2.6bn cell phone users vs. +/-1.6bn bank account holders globally
  • >50% of world’s population within wireless coverage (2005)

20%

10%

10%

50%

100%

% banked

Sources: Numbers: % Banked Honohan 2007;

% m-penetration: ITU; WireIess Intelligence 4:2002, 4:2006

2 the hype
2. The hype?

“Mobile phone banking takes off”

World Bank PSD Blog, 2006

“NFC spells plastic card decline”

GFG Report, New Zealand, 2006

“Mobiles begin calling the shots on banking and payments”

The Banker, 1 Feb 2007

“GSMA links with Mastercard in global pilot”

Mobile Payments World, February 2007

“Cell phones bring banks to the poor”

Business Day, South Africa, 19 March 2007

the mobile adoption s curve
The mobile adoption S-curve

Source: ITU 2004/ WI 2007

target group unbanked with mobile
Target group: ‘unbanked’ with mobile

8% adults use an ATM card; 21% have transferred airtime

% of adults; numbers are in m

Source: FinScope 2006; FinAccess 2006

transformational m banking models in developing world
Philippines

SmartMoney (Smart): 2000- (2.4m)

G-Cash (GXI): 2004- (0.5m)

Transformational m-banking models in developing world
  • South Africa: (500 000 users 2006)
  • - MTN Mobile Banking: 2005-
    • Wizzit: 2005-
  • Kenya:
    • M-Pesa (Vodafone): 2005 pilot started
    • March 2007: National rollout
4 the opportunity reconsidered
4. The opportunity reconsidered

2002: +50 years 84% US households have a payment card

2007: +5 years 4m Philippinos/10% of m subscribers have a m-wallet

Sources: US: Paying with Plastic (2005); other: company reports

How fast is realistic?

country take up potential is a function of
Country take-up potential is a function of:
  • Mobile/ internet access ratio
    • MICs e.g. Philippines 7:1; Japan 1.5:1
  • Existing retail payment infrastructure
    • How pervasively is plastic accepted?
  • Tech ‘savvi-ness’ of population
    • SMS vs menu driven
  • Regulation
    • Openness vs certainty of regimes
key uncertainties regulatory questions
Key uncertainties: Regulatory questions
  • Are non-banks allowed to issue e-money on a attractive basis?
  • Can non-bank agents handle cash in and out on an easy basis?
    • Branching regulation and AML/CFT
  • 3. Can telcos directly access retail payment systems?
  • If yes, to all three, then more likely to be enabling
mobile payment platforms
Mobile payment platforms
  • Are they likely to be reabsorbed into existing payment systems?
    • e.g. Deutsche Bank Research report 44, 2004
  • Security element issue
    • Who controls access to the SIM?
    • Bank vs telco struggles
    • Recent Mobey Forum/ GSMA reports stress need for trusted third party to control access