Obopay Confidential1 Aditya D Menon, CTO [email protected] +91 9867039210.

Obopay Confidential 1

Aditya D Menon, CTO

[email protected]

+91 9867039210

mailto:[email protected]


The Opportunity to Bank a Billion People

What the iPod® did for music, The mobile phone will do for money.

Obopay personalizes money by making it instantly

accessible, usable, and transferable.

In the process, make banking services and electronic payments available to all

mobile phone subscribers!

A Catalyst for Financial Inclusion


The Landscape

• Low ATM & Pos Penetration• 600MM+ Un-banked• Largely cash based

– > 90% transactions are cash based– time-value of cash is lost– theft and loss– High inherent cost of cash-handling is baked into goods and

services pricing• Card payment value chain resist fee reductions and are

unviable for micro-payments• Mobile phones growing at 6.5 MM per month• Carriers announce sub Rs 1,000 Handset• Lifetime prepaid at < Rs 1,000


India Landscape

Cell Phones

31.2, 22%

29.7, 20%

23.6, 16%

19.1, 13%

14.4, 10%

28, 19%

Bharti

Reliance

BSNL

Hutch

Tata

Others

150 Million + Growing at 7 million a month


Obopay

• Intuitive Application on the Phone– Instant Mobile-to-Mobile transfers– Low Cost Micro payments– Casual payments– Great Friends & Family transfers– Bank Neutral– Carrier Neutral (CDMA & GSM)

• Consumer Benefits– Most convenient way to exchange

money– Ubiquitous; All 2 Billion phones, all

retailers, any ATMs– Ignite the market – move quickly

to purchasing


Closed Loop Payment System

• Affordable Micro-transactions• Peer-to-peer payments for ALL• Debit/Good funds model to lower cost and

increase reach• Potential

– Great alternative to cash– Small business applications – Electronic payment convenience to all mobile phone

users.– Innovative purchasing applications– Cross border convenience


Benefits – to all parties • To the Economy

– Deposits into the banking system will increase– The recorded economic activity will grow– More transactions are traceable– Increases velocity of money– Low cost, secure solution for government disbursements and

eliminates middlemen– Via media for low cost micro-finance and financial inclusion

• To Banks and the Post Office– New deposits, new customer– Low cost small deposit solution– Money stays in the banking system longer– Ability to migrate customers upward– “No Frills” service enablement for Un-Banked– Effective remittance distribution solution


Benefits – to all parties • To individuals

– Trade over distances will be facilitated. – Convenience and safety of carrying less cash– Instant inter-personal transactions– Eliminates need for small change

• To businesses– Low cost solutions (no hardware except a phone required –

eliminate cost of POS terminal)– Lower cost of payment collection– Ability to take payments over a distance– Convenience and safety of handling less cash– Reduced collection risk– Inexpensive – facilitates micro-payments, mass distribution of

funds, microfinance


Benefits – to all parties

• To the regulator and the government– Loading only through authorized bank channels– Bank KYC compliance a pre-condition– Total transparency of source and destination of funds

with full disclosure to RBI and other interested government bodies

– Traceability of transactions– Catalyst for inclusive banking– Lowering cost per transaction through payment

system efficiency– Lowering the threshold of transactions that can

effectively come into the banking network– Effective government funds disbursement of loans,

grants, pensions


Obopay

0

10

20

30

40

50

Txn Costs

In Rupees

Comparitive Costs

BranchCost

ATM

Internet

Mobile


Target Audience - India

Primary– Micro Finance Consumer– Micro Finance Agent– Mobile Youth – Consumer– Professional

Secondary

– Parents/Head of Household – Government Payments– Person as Merchant

Sources: U.S. Census Projections of the Resident Population, Based on July 1, 2006 Projections and National Center for Education Statistics, Projections Through 2013


Initial Service

Obopay OnlineObopay Online• Sign up

• Links to existing bank account

• Load from Bank Account

Mobile ExperienceMobile Experience• Download or On Demand

• Pay, Request Pay, Balance & History

• Native mobile client, text or WAP

• Real-time P2P money exchange

• Easy money out:

• Merchant & ATM acceptance with Bank Card

• Potential for SMS Code based cash-out at Post Office and Bank Branches

Mobile & Desktop application extensionsMobile & Desktop application extensions• Web Client

• Instant Messaging Client

• Integration with m-commerce, e-commerce


MFI Payments & Collections Scenario

Obopay OnlineObopay Online• Sign up for Post Office or No-Frills Account

• Links to existing bank account or Post Office Account

• Load with cash at branch or MFI agent

• Load from account

Mobile ExperienceMobile Experience• Download or On Demand

– Pay, Request Pay, Balance & History

• Native mobile client, text or WAP

• MFI Collections through request pay

• Real-time P2P money exchange

• Easy money out:

– Mobile Authorization Code at Bank, Post Office or MFI Agent

Mobile & Desktop application extensionsMobile & Desktop application extensions• Bank or Post Office staff access through Mobile or Web


Post Office – Amazing Reach

Total Number of Post Offices in the Country 155,516

Total Number of Post Offices in Rural Areas 139,120

Total Number of Post Offices in Urban Areas 16,396

Number of Sub Post Offices 25,113

Number of Head Post Offices 822

Number of ED Sub Post Offices 2,398

Number of ED Branch Post Offices 127,183

Number of Delivery Post Offices 144,900


Potential to ramp up

1011

6875

311

1016

7052

320

0

1000

2000

3000

4000

5000

6000

7000

8000

2003-2004 2004-2005

Number Lakh

Value in Crores

Comission inCrores

Postal Money Orders

Average value of money order Rs. 694


Obopay Mobile Products

Obopay SMSObopay SMS Obopay WAPObopay WAP Obopay Mobile ClientsObopay Mobile ClientsSend commands to

shortcode [62729] or [OBPAY]

Full suite of commands allows users to:

send money, check balance, get money, history, request help, stop

Obopay provides WAP functionality to send, get, spend money and check history

Obopay providesWAP registration

Available on any mobile phone or mobile device

Full suite of J2ME & BREW

Send Money, Get Money, Balance, History

Roadmap for Windows Mobile, Palm, RIM & Symbian


Roadmap

P2P RetailSee & Scan

P2PP2 Pas

Merchant

Mobile Shopping Mobile Banking

NFCContact-less Payments

2007 2008 2009 and Beyond

Banking

•Banks will enable functionality to extend to mobile phones

•DDA, Transfers, Balance

Retail, Media, Online

See & Buy


• Obopay in discussions with banks – what they want:– Reduce costs– Customer Convenience

• Mobile Access to Checking (money to Obopay account and balance inquiry)

– Increase service and reach

Banking

CheckingLess Cash

$$$$$$

Less Checks

Debit Card Purchase

Bank

Remittance


US Marketing – Case Study

Amp’d MobileAmp’d Mobile

• Joint Marketing

• Co-branded registration page

• Co-branded pre-paid MasterCard

• Phase 1

– Downloadable BREW client

– WAP

– SMS

• Phase 2

– Pre-loaded BREW client

– Embedded in 3rd party apps


Marketing – Family Plan

• Obopay customers can set-up to 3 additional accounts for dependants

• Parents can send their dependants money to their mobile devices or in case of emergencies

– Increased visibility of transactions

– Instant gratification

Sponsor


Obopay India Pilot WorkflowAcross Banks

Cust ‘A’ sendsINR50 to Cust ‘B’

P2P Scenario

Cust ‘B’ receivesINR50 from Cust ‘A’Obopay System

of Record

Dr. Cust ‘A’ Obopay Account for INR 50

Cr. Cust ‘B’ Obopay Account for INR 50

Bank ADr. Cust ‘A’Cr. Bank B for A/c of ‘B’

Bank B G/LDr. G/L Bank ACr. Cust ‘B’

NET SETTLEMENT AT END OF DAYBANK A PAYS BANK B Rs 50THROUGH NEFT/RTGS

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Payment Platform overview

Credit, Debit & ATM Merchants

CardProcessing

CardPerson

2Merchant

Person2

Person

RegistrationAnd

AccountManagement

IndividualAccounts& SOR

Card Network

Card Network

RealtimeBalance, History & Acct-2-AcctIntegration

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Obopay Mobile Payment Ecosystem

Retailers, m-tailers and e-tailers

Banks & Post Office

Consumers- The Obopay Payment System plays a central role in mobile payment transactions between Consumers and Merchants.- Interactions are bidirectional in that Consumers can stimulate purchases as well as Merchants can stimulate offers.- Both Consumers and Merchants can make use of transactional history data which exists in the Obopay Payment System.

Consumer• Get, Send Spend• Opt in

Merchant• Promotions• Up/Cross Sell• Campaigns• Coupons/Rewards

Person as a merchant

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Global Use Cases

Philippines Globe Telecom/GCash

P2P Domestic Micropayments,

Remittance

Philippines Rural Banks Association

Transfers, Bill Payments

Kenya Vodaphone / M-Pesa

P2P, Loan disbursement and Collections

Brazil Unibanco P2P, Loan disbursements

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Global Use Cases

Chile Bandesarollo Money transfer, Loans, Account Opening

South Africa Wizzit/FNB/MTN Banking/Post Offices

Payment and Airtime purchase

Uganda Centenary Bank Money Transfer, Bill Payments, Loan Repayment

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Legal & Regulatory

Obopay is in compliance of a myriad of Financial Industry Norms

Regulation Compliance Description

OFAC ID check – OBOPAY USA

Money Laundering Bank Partners in India (OBOPAY in USA)

Know Your Customer

Bank Partners in India (OBOPAY in USA)

Consumer Privacy Privacy Policy

Regulatory USA – State Licensing, India – Service provider to banks. Can only service Banks. End consumers remains a bank customer.

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Obopay

• Innovative new mobile payment service

• Intuitive application on the phone

• US setup 2005, India 2007

• New economics only a closed loop payment system can deliver

• Potential is big – bring affordable banking services to everyone with a mobile phone.


Obopay Highlights

• Obopay: Founded in 2005 in USA• Strong Management Team

– Leadership from mobile, banking, payments, technology

• Investors – Redpoint Ventures, Onset Partners and Richmond, James Wolfenson– Qualcomm led strategic round – August 2006– India Specific Investment – NEA Indo US – Nov 2006

• Launched live, real-time P2P service – June 2006• Partnership with Amp’d Mobile – July 2006

– Co-branded MasterCard– Obopay to be deployed on all handsets – client, wap, sms– Joint marketing to university students

• Partnership with Helio – September 2006• Partnership with Top 3 Global Bank – Feb 2007• Partnership with Leading Global Instant Messaging Vendor –

Feb 2007

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Thank You

Obopay Confidential1 Aditya D Menon, CTO [email protected] +91 9867039210.

Documents

Transcript of Obopay Confidential1 Aditya D Menon, CTO [email protected] +91 9867039210.