1 airtel money – product overview and constructs

Indian Financial Landscape Mobile payment as a category is still in its nascent stage in India. While an estimated 240 million people across India hold bank accounts (less than 20% penetration), more than 90% of the country’s population uses cash to pay for its daily needs. On the other hand, the penetration of mobile telephony currently enriches the lives of over 900 million people (close to 75% of the population) in the country and can facilitate a paradigm shift in the way India transacts. Additionally, India has 100 million migrants spread across the country – 58% of these migrants remit money home, which is expected to touch $20 Billion annually by 2014. Lack of financial infrastructure, education and awareness has resulted in customers either not having access to a banking/payment service or else paying a premium for such basic service. Therefore, a majority of these customers continue to rely on traditional or time consuming methods like money orders and cheque remittances when it comes to transferring funds. airtel money as a game changer Mobile as a payment tool is quite amenable to handling a large volume of low value transactions and has proven expertise in handling payments in a safe, secure and cost-effective manner.

airtel money is India’s first of its kind mobile wallet service by a mobile operator that can run on any airtel

GSM cellphone through a simple (non-internet based, USSD) menu, providing an extensive range of services

across merchants. An easier alternative to other payment options including cash, customers can use airtel

money to pay for insurance premiums, utility bills, recharges and for remote transactions like booking tickets

or physical transactions like shopping etc. Airtel money recently also launched India’s first non-internet mobile based

ticketing system in collaboration with IRCTC.

airtel money variants

Safe & secure through mPIN

Pay anywhere, anytime

No long queues for bill payments

Get special offers

register for an account ‘load cash’ on mobile Use for various payments &

money transfer

Express Account

Recharge for Toll and any DTH or mobile phone

Pay bill for electricity, gas, landline, postpaid

Money Transfer to bank a/c & airtel money a/c

Book tickets for IRCTC, movies

Online Payments (e-commerce)

Power Account All express account features with higher transaction limits

Super Account All express account features + Earn interest @ 4% p.a. Withdraw & send cash to any

mobile

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2 airtel money – product overview and constructs

why airtel money

Airtel Money has removed geographical restrictions,

technological limitations and time constraints for Airtel

customers to do their prepaid / DTH recharges and their

postpaid / broadband / landline payments. No more long

queues and no more hassles of dropping cheques for the

postpaid customers. It is available at the click of a phone

button and allows customers to make self-payments and also

pay for his family and friends’ numbers anywhere, any time.

Convenience is what Airtel Money offers.

Airtel Money is the first mobile-based prepaid service to

offer customers the convenience of money transfer.

Customers can send money to other Airtel Money customers

as well as to any NEFT-enabled bank account in India, in a

convenient, fast and secure manner. A customer can register

for Airtel Money by dialing *400# and choosing an MPIN to

activate his account. Whenever a customer wants to send money back home, all he has to do is visit his nearest Airtel

Money retailer, load cash on to his Airtel Money wallet and then use his mobile to send money directly to the bank

account of his choice.

Alliances

Airtel money has partnered with MFIs for furthering its financial inclusion agenda. Micro Savings are promoted through

the Small Savings Bank A/c of Axis bank that makes transacting convenient through a simplified mobile based USSD

platform at the nearest airtel outlet which becomes the teller at customers' doorstep metaphorically. Airtel Money thus

brings with it the scope for product and delivery innovation extending "Micro Pensions/Insurance" using economies of

scale and takes cash management out of the MFI's domain, thus, saving on cost and time which can be utilized in further

business and product development. It is foreseen that these customers, especially women, will inculcate a habit of

savings without fear of loss or theft and should feel empowered by way of this powerful digital tool.

We are trying to build a structured framework for servicing the bottom of pyramid customers through a partner that will

help us create a pioneering model in the MFI industry nationally. We are also engaged in discussions with a dairy sector,

NPS lite through a nationalized bank, DBT schemes through a couple of State Govts to empower their

beneficiaries/customers with banking facilities in the most convenient and efficient way for them.

Looking Ahead

We wish to develop an active transacting base with diverse usage across different categories such as entertainment, travel, e-commerce, utility payments and B2B solutions across the country. We are optimistic about the potential of airtel money to bring about a sweeping change in the current economic scenario providing a strong value proposition for customers to shift from cash to mobile, as a swift & convenient mode of payment.

The Super Account is a no-frills interest-bearing

savings bank account of Axis Bank on Airtel’s mobile

platform. To begin with, the product is available in the

top 4 remittance corridors involving Delhi and Mumbai

on the sending side and Bihar and East UP on the

receiving side. Services are envisaged to be extended

to other remittance corridors across the country.

This product offers customers a convenient and safe

avenue to deposit cash, transfer money and withdraw

cash, as well as recharge their mobile and DTH

connections, while earning savings account interest.

The product has received a positive response from the

financially excluded citizens in the parts of India where

it has been launched, and is succeeding in enhancing

their quality of life.

Confidential: For limited circulation only