The Celpay Solution Miyanda Mulambo Celpay Zambia Limited.
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Transcript of The Celpay Solution Miyanda Mulambo Celpay Zambia Limited.
The Celpay Solution
Miyanda MulamboCelpay Zambia Limited
Celpay Making Finance Work For Africa 2
Celpay ..…
facilitates banking services and payment solutions using cellular network infrastructure
The Principle uses ....
- Mobile phone as basic instrument for payment instructions
- Menu options for users to send payments to others
- Money is taken from deposit accounts. No credit
What is Celpay?
Celpay Making Finance Work For Africa 3
Transaction Flow
GSMNetwork
GSMNetwork
Start:PaymentOrder
Payment Confirmation, Balance Increase
End:PaymentConfirmation, Balance reduction
Payment
Gateway
Payment Processing
Celpay Making Finance Work For Africa 4
Cellular Operators
Banks
Merchants
MFWFA
Account Holders
What does Celpay do?
Celpay Making Finance Work For Africa 5
What does Celpay do?
“3-channel” electronic access to a bank account Mobile phones Internet Point of Sale Devices
Partners with banks and Network Operators
Facilitates electronic financial transactions Real time Mobile Safe Convenient
Value added services/third party applications Individual electronic auto top-up Wholesale airtime distribution Stock ordering Telephone recharge Payment requests/Bill payments Payroll payments Corporate distribution payments facilities
Celpay Making Finance Work For Africa 6
Celpay Features
Real-time with instantaneous account update
Cash equivalent – wireless cash: sender cannot reverse transaction
Detailed records are available for each transaction
Inter-operable across banks and operators
Affordable, easy to use and Simple solution (SMS & Handset based -no additional equipment)
Fully automated financial solution with full audit trail and reporting functionality
Real time 24/7 distribution solution that Facilitates a hierarchical distribution model (if desired) Including financial settlement
Bank level security minimizes losses and fraud
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Celpay Corporate Partners
BP Zambia Plc Multichoice Zambia
Zambian Breweries Plc Zambia Bottlers Ltd
Celtel Zambia Ltd
Total Zambia Ltd
Chilanga Cement Plc
SEEDCOINTERNATIONAL
ZAMBIA LTD
Seedco Zambia Ltd
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Celpay Partner Banks
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Celpay Services to Customers
• Replace scratch-cards with
fully electronic airtime vending
system
• Pay at the till
• Pay bills at home
• Auto airtime purchase
• Bill payments at Celpay Pay Points
• Low cost services
• Payroll
• Instant, remote disbursement of funds
• Fuel allowances
• Mobile recharge
• Take cash out of distribution
• Payment confirmation
• Carry less cash• Buy what you want, when you want • Safe & convenient• Track spending• Affordable banking services
• Easy to distribute allowances• Track usage precisely• Save time and money• Provide employees with banking services
• Save time• Increase safety• Reduce cash management
costs• Improve reconciliation process
• Reduce theft• Never run-out of airtime• Minimise distribution costs• Sales 24/7• Eliminate scratch-card costs
CONSUMERS
EMPLOYERS
CORPORATES
NETWORKS
Services Benefits
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Celpay Services to Customers
• POS Devices
• Mobile Banking infrastructure
• Track spending Real time Payment• Reduced cash management and fraud• Greater security• Remote bill presentation and payment
authorization• High quality record management• Distribution management
•Increase in deposits from new accounts•Reduced cash management •Lower cost of servicing new clients (unbanked)
•Able to offer new products to existing clients
•Able to test market for m-commerce with minimal investment risk
MERCHANTS
BANKS
Services Benefits
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Celpay Successes
• Primary successes in B2B transactions with customers such as Zambian Breweries Plc, Zambia Bottlers Ltd, Heineken, Coca Cola, Total, BP, Mobile operators
• Celpay has brought previously unbanked informal traders to the forecourt of the bank.
• C2B adoption mainly through Multi-choice and other corporates
• Over 100 POS devices in Zambia and 75 POS devices in DRC accepting payments from mobile phones
• POS used for cash collection (C2B) and payouts ( cash back)
• Direct prepaid Top up from phones
• P2P payments showing some adoption
• Exploring payroll opportunities
• Celpay and its distribution network act as a payment platform to pay out ~$45 mil in cash to 75k demobilized combatants. This a World Bank sponsored project in the DRC
• Product well received by both formal and informal players
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Celpay Successes – Transaction Throughput
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
2004/2005 2005/2006 2006/2007
Financial Year
US$ '
000
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Initiatives to Service the Unbanked
• Investing in a Cash Point network
• Celpay subscribers will be able to have Celpay-enabled bank account and withdraw cash at a cash point
• Partnership with Zampost as the anchor cash point
• Initiative awaiting BOZ approval
• This will form backbone for payroll to those receiving their pay in cash
• IT will afford the ordinary person to have a savings at very low cost
• Also looking at Remittances
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Market Opportunity
Appropriate in markets with limited POS & banking infrastructure
- new generation payment instrument
Alternative to making heavy infrastructure investment for ATMs and debit cards
- creates pervasive network
Augments existing accounts to enable wireless transactions
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Legal Status
Celpay is an IT service provider for banks
Banks must undertake the opening of accounts
Consumers/merchants have no credit – debit balances only
Funds in the accounts belongs to Celpay subscribers and merchants, not to Celpay
Banks provide the link to the ECH
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Economic Impact
Celpay moves cash from general circulation into the banking system
Celpay formalizes previously informal transactions, creating a reliable audit trail
Celpay enables banks to offer very low cost services to a new customer base
Celpay facilitates banks’ cross-selling mainstream banking services
Celpay frees individuals from wasteful travel, standing in line, and money counting to pay bills
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Challenges
Lack of Direct Integration with Bank Systems Celpay system sitting outside bank systems has posed a
challenge of Celpay having to do the bank’s job of selling and marketing financial solutions
Account opening process Account opening process is a hindrance to most people
opening bank accounts especially For the banked this entails going over the same process of
account opening to have access to Celpay
Depositing Going to the bank to deposit has always been a deterrent
for most people to take up Celpay Cash Point services should help to address this challenge
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Celpay Vision
Banks ….– Setup cash-points network to increase proximity
from cash deposits & withdrawals perspective ;– Brand the product & offer it as value added services
to existing & new customers ;– Take care of cash collection;
Celpay... – Act as an enabler;– Support GSM Operators’ & Partner Banks’ marketing
& sales teams;– Deal with reconciliation & reporting;
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Celpay Security
• Authorization: – Allows multiple Account Handlers access without jeopardizing security;– Keeps track of whom has authorized which transaction;
• Data encryption:– Allow highly secure data encryption through 3DES;
• Authentication:– Supports five digits Personal Identification Number (PIN);– Customer must also have in his possession the registered SIM card to
use the PIN;– All money movements are fully logged and can be examined for
suspect behavior;
• Non repudiation capability:– The customer cannot deny having made a payment;
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Celpay - Banking for All