Mobile Payment Forum of India

1. Mobile Payment Forum of India Business Model Sub Committee Final Presentation, Feb 16th 2008 Sanjay Bhargava, Chairman, Eko Group sanjay@eko.co.in

2. Business model • “A business model is a conceptual tool that contains a big set of elements and their relationships and allows expressing the business logic of a specific firm. It is a description of the value a company offers to one or several segments of customers and of the architecture of the firm and its network of partners for creating, marketing, and delivering this value and relationship capital, to generate profitable and sustainable revenue streams.” — Osterwalder, Pigneur and Tucci (2005)

3. Final report • A resource for innovators • Key inputs from coordinator • Five Model inputs from champions

4. Key inputs • Driven by National Goals • Financial Inclusion • Anyone can be a merchant • Rs 1+1% • Rs 4 per month platform fee • Consumers • One time fee – Rs 100 • Four free per month. Extra Rs 2 • Twenty free per month. Extra Rs 1

5. Key inputs – critical mass • Re 1 on 10million is 1 crore • Win-Win if all players think critical mass • Monetization • Advertising • Other streams

6. Business model - Players

7. Shared infrastructure RBI / TRAI Airtel SBI Payment Gateway Telecom Gateway ICICI DB CBoP IDEA

8. Let market decide • Competition and innovation will determine sharing • Regulators to step in if large incumbents block innovation

9. Action items • Encourage Innovation – National whitepaper • Unbiased TRAI, RBI, IIT, MOF, PMO • Secretary, Financial Inclusion • Change Attitude • Take appropriate risk • Avoid paternalism • Goals for Banks by March 2009 • 10 million users • 100 million payments

10. Next steps • Sub Committee no longer needed ? • Discuss Action items and set deadlines – the citizen is waiting and the clock is ticking • Forum to monitor progress against goals ?

11. Thank you