Interoperability of Mobile Money Services by Sridhar Obilisetty
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Transcript of Interoperability of Mobile Money Services by Sridhar Obilisetty
Mobile Money Market Scenario in Africa
Current Mobile Money Deployments in the Continent
Close to 80 Mobile Money Deployments in Africa
Contributed to more than 4.5 % of the Sub Saharan
Africa’s GDP or $32 Billion
80% of worlds mobile money transactions
happen in East Africa
The industry accounts for 350 million jobs
High mobile phone adoption – 1 Billion
people in Africa with 700 million connections
Source: Africa Review - December 30th 2012, GSM Association
Current Market Overview in Nigeria
Mobile Money agents currently stand at 3000
Expected to grow to 50,000 by 2015
2012 Mobile Money transactions: N228 million
Expected Mobile Money transactions by 2015: N151 Billion
Non Store shopping increased from N62 Million in 2011 to N77.5 billion 2012
Non store shopping expected to grow by N658 Billion by 2015
26 million banked out of 167 million Nigerian population
Source: All Africa 3rd January 2013
Interoperability is the ability of
diverse systems and organizations, to work with each other, in the present or the future, without
any restricted access.
CustomersLimited universe to do m-Commerce
True value of Mobile Money not unleashed
Policy Makers Struggling to understand regulatory approach
BusinessesWould want to recoup investments made
Apprehensive of government intervention, to give up advantage
Interoperability - Current Scenario
Current Scenario – Only On-Network Transactions
Cross Network Mobile Money transactions not possible
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Why Interoperability ?
• Subscribers are restricted to on-network transactions,
• Agents are exclusive to one mobile money service provider
• Subscribers are limited to accessing their mobile money account only from one SIM
SMS usage before July 98
SMS usage post April 99 after SMS interconnection between operators
Has Interoperability been achieved in the Mobile
industry….??
Yes, cross network SMS is an example of interoperability success
Source: Mobile Data Association
With Interoperability Cross Network Transactions are possible
Cross Network Mobile Money transactions are possible
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Payment Switch
Interoperability – An Enabler
Product Innovation
• Remittances and Airtime top-ups are 95% of the Mobile money transactions in the world
• Invite banks, micro finance institutions, third parties to use Mobile Money infra• Make a greater range of products and services available to customers
Enable payments to and from the unbanked
• Distribution of cash remains expensive and insecure • Need of industry collaboration to enable bulk electronic payments• Ease payment acceptance from completely unbanked population
Replace cash with e-money for day to day transactions
• Still the most dominant - money transfer followed by complete cash out• Establishing interoperability allows operators more frequent and proximate
transactions • Lesser reliance on cash, provide convenience and increase relevance of e-money
INTEROPERABILITY brings in
SYNERGY where interconnections
with external parties can create greater value for customers and service
providers than a single mobile money service provider can create alone.
Benefits of Interoperability
• Interoperability will benefit service providers byexpanding the pool of customers
• Increased revenue through transactional volumes
• Minimises the need for retail agents to have cash, which iscostly to move around between different agents.
• Interoperability could serve as a primary lever by which toreduce redundant costs and expand access
Interoperability Use Case 1
Abike, a fruit vendor in the local market in Abuja has an MTN mobile money account. After a busy
day, Abike secures her days’ takings by paying into her mobile wallet via the agent in the town.
Since there is no MTN agent near the market, Abike goes to an Airtel agent who helps her in
depositing her money into her MTN mobile money account.
Interoperability Use Case 2
Ameerah, an Airtel mobile money account subscriber wants to send money to her friend
Abike, an MTN mobile money account subscriber. Interoperability makes it easy for Ameerah to send money to her friend who is
on a different network (cross-network)
Sridhar Obilisetty, CEO, mFino Ltd
Cupertino | Jakarta | Hyderabad, India | Singapore