The Celpay Solution

1. The Celpay Solution Miyanda Mulambo Celpay Zambia Limited

2. Celpay ..…facilitates banking services and payment solutions using cellular network infrastructureThe Principle uses ....- Mobile phone as basic instrument for payment instructions - Menu options for users to send payments to others - Money is taken from deposit accounts. No credit What is Celpay? Making Finance Work For Africa

3. Payment Confirmation, Balance Increase Payment Gateway GSM Network GSM Network Start: Payment Order End: Payment Confirmation, Balance reduction Payment Processing Transaction Flow Making Finance Work For Africa

4. What does Celpay do? Cellular Operators Merchants MFWFA Account Holders Banks Making Finance Work For Africa

5. “3-channel” electronic access to a bank account Mobile phones Internet Point of Sale Devices Partners with banks and Network Operators Facilitates electronic financial transactions Real time Mobile Safe Convenient Value added services/third party applications Individual electronic auto top-up Wholesale airtime distribution Stock ordering Telephone recharge Payment requests/Bill payments Payroll payments Corporate distribution payments facilities What does Celpay do? Making Finance Work For Africa

6. Celpay Features • Real-time with instantaneous account update • Cash equivalent – wireless cash: sender cannot reverse transaction • Detailed records are available for each transaction • Inter-operable across banks and operators • Affordable, easy to use and Simple solution (SMS & Handset based -no additional equipment) • Fully automated financial solution with full audit trail and reporting functionality • Real time 24/7 distribution solution that Facilitates a hierarchical distribution model (if desired) Including financial settlement • Bank level security minimizes losses and fraud Making Finance Work For Africa

7. BP Zambia Plc Multichoice Zambia Chilanga Cement Plc Celtel Zambia Ltd SEEDCO INTERNATIONAL ZAMBIA LTD Zambian Breweries Plc Zambia Bottlers Ltd Seedco Zambia Ltd Total Zambia Ltd Celpay Corporate Partners Making Finance Work For Africa

8. Celpay Partner Banks Making Finance Work For Africa

9. Celpay Services to Customers Services Benefits CONSUMERS • Pay at the till • Pay bills at home • Auto airtime purchase • Bill payments at Celpay Pay Points • Low cost services • Carry less cash • Buy what you want, when you want • Safe & convenient • Track spending • Affordable banking services EMPLOYERS • Payroll • Instant, remote disbursement of funds • Fuel allowances • Mobile recharge • Easy to distribute allowances • Track usage precisely • Save time and money • Provide employees with banking services CORPORATES • Take cash out of distribution • Payment confirmation • Save time • Increase safety • Reduce cash management costs • Improve reconciliation process NETWORKS • Replace scratch-cards with fully electronic airtime vending system • Reduce theft • Never run-out of airtime • Minimise distribution costs • Sales 24/7 • Eliminate scratch-card costs Making Finance Work For Africa

10. Celpay Services to Customers Services Benefits MERCHANTS • POS Devices • Track spending Real time Payment • Reduced cash management and fraud • Greater security • Remote bill presentation and payment authorization • High quality record management • Distribution management BANKS • Mobile Banking infrastructure • Increase in deposits from new accounts • Reduced cash management • Lower cost of servicing new clients (unbanked) • Able to offer new products to existing clients • Able to test market for m-commerce with minimal investment risk Making Finance Work For Africa

11. Primary successes in B2B transactions with customers such as Zambian Breweries Plc, Zambia Bottlers Ltd, Heineken, Coca Cola, Total, BP, Mobile operators Celpay has brought previously unbanked informal traders to the forecourt of the bank. C2B adoption mainly through Multi-choice and other corporates Over 100 POS devices in Zambia and 75 POS devices in DRC accepting payments from mobile phones POS used for cash collection (C2B) and payouts ( cash back) Direct prepaid Top up from phones P2P payments showing some adoption Exploring payroll opportunities Celpay and its distribution network act as a payment platform to pay out ~$45 mil in cash to 75k demobilized combatants. This a World Bank sponsored project in the DRC Product well received by both formal and informal players Celpay Successes Making Finance Work For Africa

12. Celpay Successes – Transaction Throughput Making Finance Work For Africa

13. Investing in a Cash Point network Celpay subscribers will be able to have Celpay-enabled bank account and withdraw cash at a cash point Partnership with Zampost as the anchor cash point Initiative awaiting BOZ approval This will form backbone for payroll to those receiving their pay in cash IT will afford the ordinary person to have a savings at very low cost Also looking at Remittances Initiatives to Service the Unbanked Making Finance Work For Africa

14. Market Opportunity • Appropriate in markets with limited POS & banking infrastructure - new generation payment instrument • Alternative to making heavy infrastructure investment for ATMs and debit cards - creates pervasive network • Augments existing accounts to enable wireless transactions Making Finance Work For Africa

15. Legal Status • Celpay is an IT service provider for banks • Banks must undertake the opening of accounts • Consumers/merchants have no credit – debit balances only • Funds in the accounts belongs to Celpay subscribers and merchants, not to Celpay • Banks provide the link to the ECH Making Finance Work For Africa

16. Economic Impact • Celpay moves cash from general circulation into the banking system • Celpay formalizes previously informal transactions, creating a reliable audit trail • Celpay enables banks to offer very low cost services to a new customer base • Celpay facilitates banks’ cross-selling mainstream banking services • Celpay frees individuals from wasteful travel, standing in line, and money counting to pay bills Making Finance Work For Africa

17. Challenges Lack of Direct Integration with Bank Systems • Celpay system sitting outside bank systems has posed a challenge of Celpay having to do the bank’s job of selling and marketing financial solutions Account opening process • Account opening process is a hindrance to most people opening bank accounts especially • For the banked this entails going over the same process of account opening to have access to Celpay Depositing • Going to the bank to deposit has always been a deterrent for most people to take up Celpay • Cash Point services should help to address this challenge Making Finance Work For Africa

18. Celpay Vision Banks …. • Setup cash-points network to increase proximity from cash deposits & withdrawals perspective ; • Brand the product & offer it as value added services to existing & new customers ; • Take care of cash collection; Celpay... • Act as an enabler; • Support GSM Operators’ & Partner Banks’ marketing & sales teams; • Deal with reconciliation & reporting; Making Finance Work For Africa

19. Celpay Security • Authorization: • Allows multiple Account Handlers access without jeopardizing security; • Keeps track of whom has authorized which transaction; • Data encryption: • Allow highly secure data encryption through 3DES; • Authentication: • Supports five digits Personal Identification Number (PIN); • Customer must also have in his possession the registered SIM card to use the PIN; • All money movements are fully logged and can be examined for suspect behavior; • Non repudiation capability: • The customer cannot deny having made a payment; Making Finance Work For Africa

20. Celpay - Banking for All Making Finance Work For Africa