Mobile Operator Financial - PDF

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					                                                 Mobile Financial Services (m-FS)
                                               A Malaysian Mobile Operator Experience

                                                                         24 June 2008




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                                            Group at a glance

                                              Core Business

                                                      Mobility with fixed line & broadband, evolving into full-suite provider

                                              Companies

                                                      Malaysia:                  Launched 1995

                                                      Indonesia:                 NTS acquired 2005

                                                      India:                     Aircel acquired Mar 2006

                                                      Strategic partner:         Saudi Telecom (25%) in Sept 2007

                                              Subscribers

                                                      Subscribers:               21 m (Malaysia 10 m, India 11 m)

                                                      Market Share:                         Malaysia 42%, India 4% (18% in
                                                        9 circles)

                                                      Group Revenue:             USD 2.8 bn (Malaysia 82%, India 18%)
                                                                                                                                2


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                                            Malaysia market opportunities for m-FS
                                            • Growing internet penetration
          Internet & Online                      • >10m users - Mainly dial up; Broadband rolling out
          Payments Growth                   • Strong growth in online payments
                                                 • 11% of Internet users made online payments in last 3 mths (2006)

             Mobile versus                  • High mobile penetration vs. credit card
              Credit Card                        • 22 m mobile lines vs. 8.8 m credit cards
                                                 • Only approx. 10% of pop. credit card
              Penetration                        • Outside Klang Valley (i.e. around Kuala Lumpur) credit card penetration lower


           Not credit eligible              • Banked, but not credit eligible
                                                 • 28% of population (2006)
               segment                           • Most under 21 yrs do not have access to credit card due to stringent criteria
                                                 • Need for electronic payment methods > for advance or online payments


                No. of                      • High number of foreign workers
                                                 • 1.85m Legal Foreign Workers - 66% Indonesian
           Foreign Workers                  • Potential for mobile remittance
                                                 • Value add to existing Prepaid mobile offering = low value/cost remittance

              Contactless
             Infrastructure                 • Contact-less for Transit & Payment in place
                                                 • Currently ~10k touch points across Touch’N Go, Visa payWave + Mastercard
              Deployment                                                                                                                         3
                                            • Existing contact-less touch points can be leveraged with NFC*                *Near Field Communications

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                                            Maxis is focusing on key opportunities..
                                                                          Advance/Online (e.g., bills)
                                                         Remote
                                                                          Machine (e.g., parking)
                                M-payment
                                                                          Time-sensitive (e.g., Metro)
                                                         Face-to-face
                                                                          Time-insensitive (e.g., boutique)


                                                                          Account information
      M-commerce                                         Mobile banking
                                M-banking                                 Account management
                                                         Rural banking


                                                         Domestic
                                M-transfer                                Money transfer/remittance
                                                         International
                                                                          Airtime transfer (“ishare”)         4


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                                            M-money services to date




     ♦    M-money 8 May 2007
     ♦    SMS Based
           – Domestic Remittance
           – Remote Payments                                                 ♦   Mobile International
                  • Prepaid top up                                               Remittance 30 May 2007
                                                                        ld
                                                                     or      ♦   Philippines (Globe)*
                  • Postpaid Bill Payment                          *W 1st
                                                                                  – Mobile to Mobile
                  • Tickets/home delivery                                                                  5
                                                                             ♦   Indonesia (Top 5 Banks)
                      e.g. Cinema, Pizza
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                                            What is M-money?


                     M-money is a wallet in your phone!


                           Convert physical cash
                                                                        Secure & convenient
                            into electronic cash

                                                             Suitable for
                                                           micro purchases


                                                      Approved by Bank Negara
                                                             Malaysia :
                                                          E-money Issuer
                                                        RM1500 Purse Limit
                                                                                              6


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                                                 M-money Menu


                                                                                    M-money
                                                                                    1 - Register
                                          Mmoney                                    2 - Cash-In
                                                                                    3 – Top-Up Hotlink
                                                                                    4 - Pay Maxis Bill
                                                                                    5 - Transfer M-money
                                                                                    6 - Manage Acct
                                                                                    7 - Cash-Out
                                                                                    8- Info
                                                                                    Reply 1, 2..




                                                                    Send to 27007


                          Convenient access via SMS
                                                                                    Simple interactive menu


                Note: Cost to customer is RM0.15 per transaction.                                             7


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                                                       M-money Registration

                                M-money
                                                                           Please reply with your                         For verification
                                1 - Register                               preferred 6 digit M-PIN.                       purposes, what type of
                                2 - Cash-In                                Eg: 123456                                     ID did you use to
                                3 - Top-Up Hotlink                                                                        register Maxis or
                                4 - Pay Maxis Bill                                                                        Hotlink mobile number?
                                5 - Transfer M-money                                                                      1. New IC
                                6 - Manage Acc                                                                            2. Other
                                7 - Cash-out                                                                              Reply with 1 or 2
                                8 - Info
                                Reply 1,2…




                                                                                                      Please reply with your                 Please reply with your
               Thank you Siti for
                                                         If you proceed, you                          new IC number (without                 registered identification
               registering. You may
                                                         agree & consent to M-                        the dash). Eg:                         number.
               now use the M-money
                                                         money T&C in                                 800212015036.                          E.g. passport, old IC,
               service. For more info,
                                                         www.maxis.com.my.                                                                   etc.
               send INFO to 27007. Ref
                                                         Pls reply with your
               No: 1234567
                                                         preferred M-money
                                                         account name. Eg
                                                         Yusoff




              Note: Registration is FREE. No SMS/Transaction Charges.                                                                                                    8


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                                            M-money Ecosystem
                     Cash In               Financial                                                                        Bricks &
                                                                   Payments Engine          Mobile Network
                    Channels              Institutions                                                                       Mortar
                                                                                          SMS
                                                                                        Consumer
                                                                                           A
         SMS
         Banking
                                                                     Consumer
                                                                    M-money A/cs

         Internet
         Banking                              Bank(s)


                                                                                                                   SMS
         Cheque                                                                                                  Consumer
         Deposit                                                                                                    B
         Machine                                                      Electronic     Mobile Network
                                                                     Money (MYR)
         Cash
         Deposit
         Machine
                                              Trustee
         Over the                                                     Merchant
         Counter @                                                   M-money A/cs
         Outlets
                                                                                                      Internet

                                                                         üInstant Transactions                                    9


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                                  Key Success Factors for m-FS
                                  ü    Speed, convenience & security
               Ease of use
                                       Depositing funds into mobile stored value accounts - current
                                       M-money barrier

                                  ü    Collaboration, not competition, between financial institutions,
              Partnerships             payment providers, mobile operators and merchants
                                       Very difficult for Mobile Operator to successfully introduce
                                       new payment instrument alone


             Open standards/      ü    Service offering not restricted to specific operators, banks or
                 platform              payment systems
                                       By default Mobile Operator mobile stored value a/c is an
                                       isolated offering

                Relevant          ü               Services that warrant m-payment, e.g. SMS for non-face to
                services                          face cash replacement, micro remittances
                                                  Consumer research has shown over & over that SMS is not     10

                                                  preferred
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                                            Moving forward - NFC* is likely to make a
                                            fundamental difference to m-payments



                                                           = Speed and Convenience




           Fast                                            Just ‘touch to pay’
           Secure                                          Leverages existing standards
           Existing                                        Uses card schemes e.g.Visa/TnG
           Convenient
    *Near Field Communications = 'Touch to Pay'            Mobile + multi-application on 1 chip
                                                                                                  11
               *Near Field Communications
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                                                           Thank You!




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              Back Up




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                                            Mobile Remittance highly innovative..

                                Cross border money transfer using M-money via mobile

                                             ♦    Source of Funds : M-money (Maxis stored value mobile
                                                  wallet)
                                             ♦    Target Segment : Overseas Foreign Workers in Malaysia
                                                  remitting money to home country
                                ld           ♦    Services i) Philippines* - Mobile to Mobile
                             or
                           *W 1st
                                                                   ii) Indonesia - Mobile to Bank A/c
                                             ♦    Licensed : Non-Bank Remittance Operator in Malaysia




                                                                                                          14


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                                           Mobile Remittance - A simple concept..

                   M-money

                    1 - Register
                    2 - Cash-In
                    3 - Top-Up Hotlink
                    4 - Pay Maxis Bill
                    5 - Transfer M-money
                    6 - Manage Acc
                    7 - Cash-out
                    8 - Info

                   Reply 1,2…




                    Step 1                                     Step 2         Step 3


                                            Three easy steps:
                                            1. Register for M-money via SMS
                                            2. Cash in to M-money a/c
                                            3. Remit money via SMS

                                                                                       15


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