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Transcript of 4Cs of Paymate
8/4/2019 4Cs of Paymate
http://slidepdf.com/reader/full/4cs-of-paymate 1/4
PayMate to provide Mobile Banking Solutionsto major Indian Banks
PayMate, India’s leading mobile commerce company, has partnered with
Syndicate Bank, one of India’s leading nationalized banks, to provide mobile banking
solutions to their customers across over 2000 branches. This is PayMate’s first
foray into the lucrative Mobile Banking solution space. While PayMate has till date
tied up with 22 leading banks and provided them with its mobile payment services &
applications, PayMate will now also be offering holistic mobile banking applications
which will include non-financial transactions as well.
Syndicate Bank customers will be able to download a mobile banking application
on their GPRS enabled cell phones and this application will allow them to carry
out their daily banking functions like funds transfer, stop-cheque, balance enquiry,
cheque book request etc. Additionally, they will also be able to use their mobile to
ISSUE - JULY 2009l
...contd. on back page
Where are we in Mobile Payments? The RBI Mobile
Banking Guidelines was out last year (October 2008).
More than 19 banks have received approval to launchsome kind of Mobile Banking service for their customer
base. PayMate itself is live with eight deployments in
India (SBI, IDBI Bank, Corporation Bank, Stanchart,
ABN-Amro, Lakshmi Vilas Bank, South Indian Bank,
Union Bank), and two overseas banks (RBB Nepal &
Bank of Ceylon) and has a dozen plus in various stages
of implementation within the Indian-Subcontinent,
West Africa and Middle East.
Clearly the core value proposition of Mobile Payments
is Convenience or taking away the pain from day to dayfinancial (and non financial) transactions viz bills from
various utility services or shopping & ticketing or money
transfer, gifting and alerts, etc. The convenience factor
tips the balance for adoption, when security of doing the
transaction is adequate - and benefit is seen as greater than
perceived risk. Its essence is what lends itself to ease of
use, anytime anywhere nature and speed of transaction.
The 4 C’sof Mobile Banking
...contd. on back page
Mobile Banking makes things easier
...contd. on back page
Lakshmi Vilas Bank, one of South India’s premiere private
banks, has tied up with PayMate, India’s leading mobile commerce
company, to provide mobile payment solutions to its customersacross over 200 branches. With this partnership LVB will be
joining a select group of large public sector as well as private &
MNC banks that have embraced the potential of mobile banking
and payments.
Speaking on the association Mr. B.M.Nair, CTO, Lakshmi VilasBank said “As a heritage bank with a rich history, what differentiates
us from others is our relationship with our customers and the value
Lakshmi Vilas Bank inks partnership with PayMate for Mobilepayment solution
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The $5bn MMT opportunity
The World Bank quantifies the current remittances market at $318bn,
with informal transactions taking the total to close to $600bn. Domestic
money transfers are typically 10 times as frequent. Revenues derived from
domestic and international MMT services will exceed $5bn globally by 2013.
The same analyst, from Juniper Research, also found that 70% of mobile
payment initiatives announced in the last 6 months have been in MMT.
Mobile money is a competitive necessity for MNOs, particularly inemerging markets. For example, Safaricom’s M-PESA has secured 5 million
loyal customers in under 2 years, and has recently broken even. Mobile
money offers the chance to extend financial services to the unbanked – it
costs around $400 to equip a mobile money agent. It costs around $250,000
to set up a branch, $10,000 to set up an ATM - mobile money will be the key
to bringing financial services to rural areas.
However, many mobile money initiatives fail. You need to engage with a
diverse and complex ecosystem of partners and competitors. The MMT project
management roadmap requires tackling many obstacles, from defining a
business model that satisfies multiple regulators (who may not have defined their
regulations yet!) to selecting technology partners, developing an agent network,
setting your fees and commissions, piloting and launching the service.
“The world’s population will look back in ten years time and acknowledgethat mobile money transfer was the product of the decade” – Michael
Joseph, CEO, Safaricom.
2
Mobile banking uptake risesGrowing desire among consumers to keep closer tabs on finances
is driving the trend, says research. The uptake of mobile banking
services is increasing as consumers seek to better monitor theirfinances, according to research. More than half (52 per cent) of 1,000UK consumers polled by Monilink and The Future Foundation are
checking their bank balances via their mobile phone more often – ausage increase of 10 per cent since October 2008. But mobile bankingis still only used by five per cent of UK bank customers, says the
study, which represents growth of 25 per cent over the same period.“As the recession continues we are seeing consumers adapting their
behavior to help them get better control of their money, with people
checking balances more often,” said Barry Clark, research directorat the Future Foundation. “Furthermore, having tracked behavior over
the past six months we can see how money awareness has becomeincreasingly ingrained into consumers’ minds,” said Clark.The rise in consumer use of mobile banking services indicates
technology is “part of the solution” in times of financial instability,
said Monilink’s managing director, John Milliken. “However, we seethis flight to technology as a long-term trend as people increasinglychoose fast, convenient and secure ways to manage their financial
affairs,” he said.
Security main concern for USCustomers
A survey by KPMG has revealed
that most people in the US are
uncomfortable with mobile banking,
mostly citing concerns about
security as a main reason. Most US
respondents (91 percent) said theyhad never tried banking through a
mobile device, and similar levels were reported for mobile payments: 95
percent of U.S. respondents said they never made a purchase from a vending
machine using their mobile device and 95 percent said they never made a
purchase using a mobile device through a retailer’s mobile website.
Two thirds of respondents said they weren’t comfortable using their
mobile device for financial transactions, and of those respondents who had
not done any mobile banking 48 percent cited security and privacy as the
primary reason. There’s not much flip side – only 19 percent of respondents
said they are at least “somewhat likely” to use their mobile device for online
banking in the next 12 months, with 7 percent saying they were willing to
pay a nominal fee to do so. More people may be interested if they can be
convinced that mobile banking is secure, and if they become aware of theservices that are offered. About 68 percent of respondents said that their
current bank does not offer mobile banking. “The fact that the majority of
U.S. consumers are not aware that their current banks offer mobile banking
is clearly more perception than reality,” said Carl Carande, a principal in
KPMG LLP’s Advisory and Banking and Finance practices, adding that
banks would have to work on increasing awareness of the service.
MTN launches MobileMoney offering in Ghana
African operator MTN Ghana
has launched its Mobile Money
service in Ghana. The serviceallows mobile owners to store
and transfer money, and pay
for goods, without needing a
bank account. The group has
also launched the service to
subscribers in Uganda and
its West and Central Africa
(WECA) operations including
Cote d’Ivoire and Nigeria following successful pilots in 2008.
MTN Ghana launched Mobile Money ahead of its competitors in
partnership with nine banks including CAL Bank, Ecobank, Fidelity Bank,
GTBank, Intercontinental Bank, Merchant Bank, UBA, Stanbic and Zenith
Bank. The service would enable Ghanaians to perform a range of basicfinancial transactions using their handsets without the need of a bank
account, and provide access to money beyond banking hours.
Mr. Brett Goschen, MTN Ghana CEO, said: “The introduction of
MTN Mobile Money which is convenient, accessible, safe and easy
demonstrates the company’s commitment to bring world class
mobile services to subscribers in all parts of the country. The secured
system and processes conforms to best practices in the industry and
highly regulated by relevant authorities.”
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Mr. B. Murali Nair, Chief Technology Officer, Lakshmi Vilas Bank
1. What are your plans for Mobile Banking and Mobile Payments?
Lakshmi Vilas Bank has an aggressive plan for rolling out Banking and
Payment services through mobile. We will be rolling out the services in the
coming days. Our objective is to move our customers to this platform and
reduce transaction costs.
2. Which technology is planned or in place by you for financial and
non-financial mobile banking transactions?
Technically most of these services can be deployed using more than one channel.We shall be using the IVR, SMS and WAP technology to deliver the mobile services.
Stand alone Mobile applications like J2ME applications are also being evaluated.
3. What synergy do you see between Mobile Banking and
Phone Banking?
Frankly I do not see any synergy. Phone Banking has been in use for quite some
time and has not become popular. I am afraid it will die a natural death. On the
other hand mobile based banking has been a huge success in countries like South
Korea where it has been able to even drive the sales of mobile phones. It has the
same potential as what e mail did to internet. It can have a tremendous impact on
the m-commerce space also.
4. What challenges do you expect to face as you bring mobile banking to
your customers?
For one thing, it will not be able to support the entire gamut of banking services.
The compatibility of the mobile operator with the handset, there being plenty of
models and makes in the market may also be an issue. Security also still remains a
concern and service providers are yet to give comfort on this front.
5. How will you encourage your customer segments to utilize mobile banking/
payment services?
We will try a combination of methods consisting of incentivizing, awareness
drive and the awareness about the ease of usage besides the normal marketing
techniques like publicity campaigns, press advertisements etc.
6. What trends do you foresee in the Mobile Commerce space?
If the trends in other Asian countries are any indication, I feel that mobile commerce
holds great potential. With more maturing of technology, banks will try to reach
out to more number of customers. Banks see the advantage of reducing the cost
of transaction while being able to cross sell and up sell their products though this
medium. With the growth of mobile population increasing at a very fast pace, the
prospects of customer acquisition also increases dramatically.
Mr. DK Kundu, AGM,Information Technology, Syndicate Bank
1. What are your plans for Mobile Banking and Mobile Payments?
Syndicate Bank is already in the process of implementing the Mobile
Payment and m-Commerce solution. Funds transfer will be thus on the
finger tips of the customer.
It will facilitate availability of funds to dear ones. Sending gifts on
various occasions will be easier now. To take it further, we may think
of the Mobile as a part of Cash Payment System through ATM or POS
machines, thus facilitating the customers to get payments anytime and
anywhere instantly.
2. Which technology is planned or in place by you for financial and
non-financial mobile banking transactions?
Syndicate Bank has chosen the ASP model of providing Mobile Payment
and m-Commerce solution. Paymate India has been chosen as a partne
to this project.
3. What synergy do you see between Mobile Banking and
Phone Banking?
In addition to payments, mobile Banking is used for sending information
to the customers such as alerts, warnings of any unwanted transaction
taking place etc thus in effect acting as a tool of authentication. Traditiona
Phone Banking did not have any such facility.
4. What challenges do you expect to face as you bring mobile banking
to your customers?
Security is a challenge. However the same can be mitigated by pre-
emptive response to the issues. Syndicate Bank has robust Security
processes in place.
5. How will you encourage your customer segments to utilize mobile
banking/payment services?
A mobile phone is already in the hands of most of our customers. The only
effort that it requires for popularizing the service is to provide them the
information about the utility and the ease of the service.
6. What trends do you foresee in the Mobile Commerce space?
This is going to be the most favored mode of funds transfer and commercia
transaction. The usage will be across the country. Mobility has already
penetrated into the rural areas of India and because of this reach we
anticipate that the usage of mobile for payment will be crossing all limits
in near future.
Mobile Banking and Payments: Prospects of customeracquisition increases dramatically
The edit team spoke to Mr. B. Murali Nair , Chief Technology Officer, Lakshmi Vilas Bank, and Mr. DK Kundu , AGM, Information Technology, Syndicate Bank for their views
3
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It must also cater to three distinct consumer needs (a) address “pain point”
for today’s harried time pressed customers in their daily rush to manage their
lives and work. Paying bills, premiums, installments, fees etc. (b) serve as an
aspirational need, one - of making a lifestyle statement of being able to buy
tickets, gifts, holidays, hotels, cars, restaurant etc while on the move and (c)
being in command, without complex intermediaries or processes, having theworld literally at your fingertips.
Communication towards creation of awareness (need) of the concept and
benefits as outlined above are key. Stoking interest and desire would be first steps,
leading to action and usage. In this all stakeholders have to play a role. If Banks
are the front facing entity providing this service under their overall brand, then the
onus is primarily on them to drive this. In the recent past several Banks have made
announcements with ads in the top business newspapers, TV ads and various Out
of Home media (ATL). Others have embarked upon below the line (BTL) activity by
way of SMS, e flyers, online ads, messages on statements & ATM screen & slips,
signage, etc. Both methods are needed. One to create awareness and desire, the
other to induce and action. Perhaps in the ratio of 20:80.
The third ‘C’ is Customer Adoption. How fast or which customer segment is
the low hanging fruit and how to ‘board’ them into the service? The challengeis to get this TG to sample and experiment with the service, and then make
them regular users. This could be a 3 stage cycle, firstly board the i-banking
& e-commerce customers (the immediately relevant TG) – these are the ear
adopters and electronically savvy base. They tend to be the evangelists and for
the core of potential word of mouth. Second, some banks have embarked upo
incentivizing registration and subsequent usage by running special promotion
offers. A program which has been very successful is movie ticket offers, with on
ticket free or 25/50 % off. And third, every new customer is given the option obecoming a mobile payment user at the time of opening of an account. The en
game is to focus on converting at least 10 percent of the i-banking & e-commerc
base into a regular mobile payment transacting user base within 12 months! N
doubt this is the slowest part of the journey, but something which has to be don
by the service provider.
The last ‘C’ is Concern on security, speed, privacy and risk. This is a genuin
issue, albeit a perception issue. Every consumer electronic payments channe
has had to perforce run the gauntlet of misuse or safety perceptions- whethe
that is credit card, ATM, debit card, online banking or telephone banking. S
neither will the mobile payments channel be exempt from this. It will have t
jump through the same consumer education hoops. This again will need to b
primarily addressed by good (focused) marketing communication, viral and
minimal critical mass of good user experience.
Probir Roy, Co-founder and Director, PayMa
pay for mobile recharge, utility bills, movie & flight tickets and other online &
retail purchases at over 15,000 PayMate registered merchants across India.
Speaking on the association Ajay Adiseshann, MD and Founder, PayMate
says, “The high penetration of mobile phones is the definitive indication of the
growth potential of m-commerce in India. With this technology we plan to
offer Syndicate Bank customers an all new banking experience whereby they
can conduct their banking and non-banking transactions through their mobi
phones anytime anywhere.”
PayMate’s selection as the developer for Syndicate Bank’s mobi
banking initiative has come after a tough selection process where-in a tot
of 9 companies including Obopay, FSS, Unicell & NGPay participated in th
bidding process.
Contact us : PayMate India Pvt Ltd. 111, A Wing, Sundervilla, S.V. Road, Santacruz (West), Mumbai - 400054 Tel: 022-26616170 Email: [email protected]
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Disclaimer : All names and logos are copyright of the respective owners.
1. Mpower is an Industry Newsletter for private circulation to opinion leaders within the consumer payment systems industry only.
2. We do not accept any responsibility or liability for the accuracy or contents of the newsletter. These are reports based on public information.
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we offer them. We always strive to bring the best of banking convenience
to our customers whether it is through improved services over the years
or through technologies that enable them to do more. Our partnership with
PayMate will enable us to do both with an exciting mobile payment solution
for our customers”.
Ajay Adiseshann, MD and Founder, PayMate says, “Our alliance with
Lakshmi Vilas Bank will further bolster our payments ecosystem. Further, we
are excited to bring mobile payments to LVB’s customers and are confident
that the sheer convenience of using their phones to make payments will
drive the uptake and enhance customer satisfaction, loyalty and stickiness”With PayMate, Lakshmi Vilas Bank customers will be able to use their
mobile to pay for mobile recharge, utility bills, movie & flight tickets, onlin
purchase, retail shopping and so much more at over 15,000 merchants
India registered with PayMate.
How PayMate works:
• Once the customer chooses to pay via PayMate at the merchant, he / sh
shares the registered mobile number and the merchant triggers an IVR ca
to the customers mobile.
• The customer punches in his 4 digit mPIN to authorise the payment.
• A confirmation of the transaction status is sent to both the custome
(via SMS) and the merchant (through the PayMate interface) within few seconds.
PayMate to provide Mobile Banking... contd. from front page
Lakshmi Vilas Bank inks... contd. from front page
The 4 C’sof Mobile Banking... contd. from front page