Rich Bialek, CEOJune 24, 2015

Value Proposition for Prepaid Market Segmentation

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Current State of Prepaid in Africa

Sudan

Algeria

Niger

AngolaZambia

BotswanaMadagascar

Mauritius

Seychelles

South Africa

Namibia

Morocco

Mauritania

Lybia Egypt

ChadMali

NigeriaEthiopia

Eritrea

Somalia

Democratic Republic

of the Congo

Central African Rep.

Tanzania

Kenya

Mozambique

Comoros

CongoUganda

Cape Verde

Senegal

Liberia

Coted‘Ivoire

Ghana

Burkina Faso

Cameroon

Gabon

Equatorial Guinea

Sao Tomé and Principe

Gambia

Sierra Leone

Tunisia

Guinea-Bissau

TogoBenin

Lesotho

Swaziland

Zimbabwe

Malawi

Rwanda

GuineaDjibouti

Burundi

South Sudan

Developing

Emerging

Advanced

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Prepaid Needs by Market

Developing Markets

Emerging Markets

Advanced Markets

General Purpose Card

Basic Segmentation

Advanced Targeting

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Segmentation – Developing Markets

For developing prepaid markets, identify segments that meet three criteria:

1. High profit potential

2. Large customer base

3. Relatively easy to launch

Two examples are Travel and Salary card programs.

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Travel Cards

Justification• High profit potential with international

travel• Market to business and holiday travellers• Safer and simpler than cash• Protects debit and credit accounts

Marketing• Target companies needing to simplify per

diem and expense reporting• Promote worldwide acceptance of prepaid• Partner with local travel agencies• Print, billboard and radio advertising

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Salary Cards

Justification• Lower profit per card, but predictable

monthly revenue stream• Market to existing corporate clients• Reduces employer expenses• Employee financial inclusion

Marketing• Target companies currently paying with

cash or cheques• Promote the safety and cost reduction vs.

handling cash• Present to industry groups in your country

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Segmentation – Advanced Markets

For advanced prepaid markets, identify segments that expand the customer base and prepare customers for other banking products

• Purchase habits require a card (online shopping, travel, etc.)

• Potential for long-term banking relationship (debit/credit, home loans, business owners, etc.)

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Gen Y Cards

Justification• 20-35 year-olds more likely to incorporate

smartphones into their lifestyle• Frequent digital purchases (apps, music) • Desire for online shopping capability• More educated and affluent – future

business and government leaders

Marketing• Develop banking programs that fit – not

one-size-fits-all• Card and advertising should be exciting and

innovative• Partner with online shopping sites

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University ID Cards

Justification• Low revenue, but predictable monthly

revenue stream• Also includes a faculty salary/travel card• Provides their first banking experience• Establishes bank loyalty just as they’re

entering the workforce

Marketing• Develop ongoing relationship with students

(and parents) throughout university career• Advertise on campus to explain the value

and functionality of their prepaid card• Provide a new card as they graduate to

extend relationship

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Virtual Cards

Justification• Reach mass audience with low-KYC,

low-velocity digital card• Small revenue per transaction, but high

transaction count• Provides opportunity to upgrade to a

physical card

Marketing• Digital-only experience provides

opportunity for SMS, e-mail, and in-app advertising

• Promote added versatility of a physical card• Use customer data to promote targeted

banking products (home loans, etc.)

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Government Disbursement Cards

Justification• Large civil service population in many

countries• Low profit, but frequent usage and

predictable revenue stream• Government jobs often transition to

corporate positions• Incorporates aspects of ID cards, travel

cards, and payroll cards

Marketing• Seek out large groups (military, pensions,

etc.) where the card adds most value• Promote additional banking products that

fit target audience

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GTP Example

GTP has launched the Market Ready line of

products to enable bank partners to reach target

segments quickly, inexpensively, and successfully.

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White-Label Travel Card

GTP assists the bank with card/carrier

design, print and digital advertising,

and strategies for a successful launch.

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Summary

In summary, segmenting your customer base can help

your bank identify profitable and untapped markets

that increase card revenue, enhance bank loyalty, and

drive demand for other banking products.

Questions?