Wallet Landscape 2020

7/30/2019 Wallet Landscape 2020

1/16

www.terrapinn.com/cme

Innovations andStrategies in

Cards, Payments

& Identifcation
http://www.terrapinn.com/cmehttp://www.terrapinn.com/cme


2/16

OSAMA AL RAHMAExecutive Director, Al Fardan Group

G l M Al F d E h

WALLET LANDSCAPE 2020


3/16

M-PAYMENTS: RE-DEFINE WALLET LANDSCAPE

KEY DRIVERS: M-PAYMENTS IN MIDDLE EAST

CHALLENGES: GROWTH OF M-PAYMENTS IN MIDDLE EAST

e-MONEY: WAGE PROTECTION SYSTEM

GLOBAL REMITTANCE LANDSCAPE

ENABLING MOBILE REMITTANCE

PREPAID TRAVEL CARDS

WALLET LANDSCAPE 2020

AGENDA


4/16

M PAYMENTS RE DEFINE WALLET

4,200,000,000People out of the 7,000,000,000

worldwide use at least one Mobile

Phone

$ 670,000,000,000

Expected total Value of mobilepayments globally for digital and

physical goods, money transfers and

NFC by 2015.

43.7%Smartphone penetration in UAE

Market offers users access to eMail,

Social Networking and MobileApplication.

65%M-Payment Market Share is

expected to be in emerging markets

such as Asia, Middle East Arica andSouth America by 2012.

$ 55,000,000,000Expected Mobile Remittance

Transactions by 2016. Migrant

Worker Communities in Middle East

and Africa and US/Mexico to triggerthe growth.

ReferencesRemittance and payment business to undergo shift, Gulf News, March 2012; Arab Advisor Group Survey , March 2012; Mobile Payment Opportunity in Middle East, Grail Research , February 2010


5/16

RELATIVELY HIGH MOBILE PENETRATION

LARGE NUMBER OF TRANSIENT WORKFORCE

LARGE MIGRANT WORKFORCE DEMANDING REMITTANCE SERVICE

SOCIO-ECONOMIC DYNAMICS

GOVERNMENT INITIATIVES

KEY DRIVERS


6/16

KEY DRIVERS

0.00% 50.00% 100.00% 150.00% 200.00% 250.00%

Kuwait

Oman

Qatar

Saudi Arabia

United Arab Emirates

GCC Mobile Penetration

30,000,000Migrant Workers in the Middle East

region offers substantial outflow offunds from the region.

5.6% (CAGR)Mobile Workforce in the EMEA

region will grow from 186.2 Million

in 2010 to 244.6 Million in 2015.

39%Migrant Workers in UAE are

Unbanked. Saudi Arabia (29%) also

have considerable unbanked expat

population.

Middle East Africa M-Payment Transaction Value

by Segment, 2012E

84%

11%

1% 4%

Remittance

Top-Up

Retail

Others

ReferencesFinancial Inclusion in the MENA: Analysis and Road Map Recommendation , Douglas Pearce, World Bank; Mobile Payment Opportunity in Middle East, Grail Research , February 2010; Worldwide Mobile Worker

Population 2011-2015 Forecast, IDC


7/16

SOCIO ECONOMIC FACTORS

Routine Financial Habits

Concentrated Residential Access

High Proportion of relatively Low Income Level Migrantcommunity

Lack of dedicated Products and Services for the Unbanked

Insistence of World Bank, to reduce Remittance Fee

Wage Protection System, United Arab Emirates

KEY DRIVERS

GOVERNMENT INITIATIVES

Dubai e-Government Initiative

Mobile Payment Gateway mPay

Services Offered

Salik Recharge Road Transport Authority Traffic Fines Dubai Police

Utility Bills Dubai Electricity and Water Authority


8/16

A large segment of the unbanked population in the MiddleEast is not comfortable with the use of technology forpayments and is guided my lots of myths and fear.

Service providers will need to invest in simplifying thetechnology and interface, and in educating customers

CREATING TECHNOLOGYUSAGE AWARENESS

A wide distribution network of agents is critical to success

in this market, but setting up and maintaining such a

network can be difficult and costly in a some countries.

Low start-up costs and an attractive commission structure

for their network of agents will be critical for success.

EASILY ACCESSIBILEDISTRIBUTION NETWORK

The regulatory framework for financial transactions viamobile phones is currently not well developed.

The Regulators may have to adopt strict and proactivemeasures with respect to KYC, TM which may add cost andslow adoption.

OVERCOMINGREGULATORY BARRIERS

Requirement of a Bank Account

Not focusing on Unbanked Population

Nascent Nature of the M-Money Industry

LACK OF CLARITY ANDDIRECTION AMONGSERVICE PROVIDERS

C G S G O O S


9/16

PRODUCT FEATURES

Compliant with WPS (Wage Protection

System)

Offers Comprehensive Platform for Corporate

Payroll and Remittance Service.

Single Mode Salary Payment Banked and

Unbanked Employees

24 X 7 salary withdrawal and remittance (on

ATMs).

OEM Online Employee Management web

based application for EmployeeRegistration and Payroll Management.

CASH-OUT LOCATIONS

Over 40 branches of Al Fardan Exchangeacross

Over 650 Emirates NBD ATMs across UAE


10/16

MOBILE POS

EMPLOYER

ATM

AL FARDAN e-

MONEY

BRANCH

CENTRAL BANKOF UAE MINISTRY OFLABOUR

AL FARDAN

EXCHANGE

1

2 3

4

5

6

7

8

REGISTRATION

SIFFILETRANSFER

SIF FILE PROCESSING SIF FILE VERIFICATION

INITIATE SALARY

TRANSFER

PROCESS SALARY

TRANSFER

CONFIRM SALARY

TRANSFER

UPDATE SALARYTRANSFER

EMPLOYEE SALARY

CASH-OUT


11/16

215 Mill ion International Migrants Worldwide sent an estimated US$325 Bill ion totheir families in developing countr ies in 2010 and will reach US$374 Bil lion

by 2012

Source: Migration & Remittance Handbook 2011, World Bank

SUB-SAHARANAFRICA

US$ 21.5 Billion

UNITED STATESUS$ 48 Bill ion

MEXICOUS$ 22.6 Billion

LATIN AMERICAUS$ 58.1 Billion

MOROCCOUS$ 6.4 Billi on

INDIA

US$ 55 Billi on

PAKISTANUS$ 9.4 Billio n

CHINAUS$ 51 Bill ion

PHILIPPINES

US$ 21.3 Billion

GCCUS$ 63.75 Billion

AUSTRALIAUS$ 3 Billion

EUROPEAN UNIONUS$ 42.3 Billion

REMITTANCE SENDING COUNTRIES

REMITTANCE RECEIVING COUNTRIES

BANGLADESHUS$ 11.1 Billion

EGYPTUS$ 7.7 Billio n

RUSSIAN FEDERATION

US$ 18.6 Billion


12/16

REACHPARTNER

NETWORK

REACHm-Remittance

PAYROLL CARD

BANK

ACOCUNT

1 32

MOBILE

WALLET

BANK

ACCOUNT

CASH

BENEFICIARY

4


13/16

Reloadable Prepaid Card that offers consumers

with:

Secure alternative to CASH

Ideal replacement to Travelers Cheques

Better control over spending with benefit ofworldwide acceptance

Available in AED & USD Currencies

Accepted Globally on VISA network POS, ATM

& Online

Support Features Card to Card Transfer

Balance Inquiry

Transaction History

Dedicated Web Service on

http://www.travelezcard.com

Dedicated Call Centre Service (600544474)
http://www.travelezcard.com/http://www.travelezcard.com/


14/16

Payroll Cards

M-Remittance Wallets

Prepaid Cards

NFC Enabled M-Payments

Credit / Debit Cards

Rise in Prominence of Remittance Wallets and NFC EnabledM-Payment are to dilute the share of other Wallet Options

such as Physical Wallets and Card Based Payment Systems.


15/16


16/16

www.terrapinn.com/cme

Click here to leave a comment on The Wall blog

Click here to contribute to our LinkedIn conversation

Click here to ollow us on twitter

Click here to sign up or the Cards & Payments blog e-newsletter or updates on all areas o cards, payments and identifcation

Join the conversation

Wed love to hear your

views on all of this...
http://www.terrapinn.com/cmehttp://www.terrapinn.com/cmehttp://www.terrapinn.com/cmehttp://www.terrapinn.com/cmehttp://www.terrapinn.com/cmehttp://www.terrapinn.com/cmehttp://www.terrapinn.com/cmehttp://www.terrapinn.com/cmehttp://www.terrapinn.com/cmehttp://www.terrapinn.com/cmehttp://www.terrapinn.com/cmehttp://www.terrapinn.com/cmehttp://www.terrapinn.com/cmehttp://www.terrapinn.com/cmehttp://www.terrapinn.com/cmehttp://www.terrapinn.com/cmehttp://www.terrapinn.com/cmehttp://www.terrapinn.com/cmehttp://www.terrapinn.com/cmehttp://www.terrapinn.com/cmehttp://www.terrapinn.com/cmehttp://blogs.terrapinn.com/cards/http://www.linkedin.com/groups?gid=2819513&trk=hb_side_ghttps://twitter.com/#!/search/cardsbloghttp://go.terrapinn.com/thewallhttp://go.terrapinn.com/thewallhttps://twitter.com/#!/search/cardsbloghttp://www.linkedin.com/groups?gid=2819513&trk=hb_side_ghttp://blogs.terrapinn.com/cards/http://www.terrapinn.com/cme

Wallet Landscape 2020

Documents

Transcript of Wallet Landscape 2020