ecosystems of mobile paymentsconf.mbri.ac.ir/ebps5/userfiles/file/پاورپوینت__ها/ر وز...

1 Orange Restricted

ecosystems of mobile payments

Tehran, conference 12th January 2016

Rambert Namy – Orange Group

2 Orange Restricted

agenda

1. introduction

2.mobile payment broad offering

3. latest innovations

4.Orange experience

3 Orange Restricted

1. introduction

4 Orange Restricted

mobile as the mainstream channel for financial services

increasing penetration of smartphones and tabletsworldwide

rapid & high growth of mobile banking service adoption

development of new payment technologies:

tokenisation mechanisms

handset payment propositions

NFC payment back on agenda

mobile money service expansion in emerging markets

195 Billion commerce transactions

originating from mobiles and tablets by 2019

519 Million mobile users of NFC

contactless payment services by 2019

30% banking transactions performed

through mobile

255 mobile money services live across

89 countries as of 2014

key factors in numbers

bank

5 Orange Restricted

Increase customer loyalty by offering a valuable serviceto both banked and unbanked customers

Find new source of revenues from fees and commissionsperceived from Mobile Payment transactions

Strengthen brand image through the launch ofinnovative service accessible from a mobile device

Leveraging on the expertise of creating new customerexperience on mobile (USSD, STK, apps)

Telco to enter into financial services with 4 main objectives

6 Orange Restricted

2. mobile payment broadoffering

7 Orange Restricted

Mobile Financial Services for the banked and un-banked

mobile money services

Commerce

Digital bank

unbanked /underbanked

individuals

highly bankedhighly equipped in data-

capable mobile devices

mobile device penetration high

but low access to data

banking industry

developmentmobile device penetration types of MFS MFS interfaces

USSD

SMS messages

SIM toolkit…

Mobile App (Android / iOS /

Windows Phone / Webapp)

Near Field Communication

(NFC)

2D Code

Mobile Web Payment (e.g.

Paypal)…

Financial inclusion and penetration of smartphones determine types of MFS development

8 Orange Restricted

Mobile Financial Services in developing countries

Mobile Payment services are deployed

worldwide.

services are to be launched.

services have reached 1 million active users

strategic threshold.

12

9

14

119

4261

2

7

Mobile Payment is a worldwide deployed

service…

…which requires a strong

partnership model

174

108

10+

Mobile Payment is a complex ecosystem

which involves several actors and roles.

For an efficient launch, a good partnership

model is mandatory.

… to provide 3 types of

transactions to customers

Payment acts: Airtime top up Merchant and bill payments Salary, pension, tuition fees

Financial services: Insurance life

Saving account

Money transfers: Peer-to-peer transfer

Money transfers

Payment acts

Financial services

9 Orange Restricted

global mobile payment ecosystemconsumer segments

payment services providers

internet & tech companies, retailers, payment processors, MNOs, retail banks, fintech…

Providers of financial services; retail banks, MNOs, carrier billing, credit/debit card networks…

handsets

technology and system vendors

token service providers, NFC chips, Secured and HCE solutions, apps and platforms, core and mobile banking platforms, mobile money platforms

regulators, Central banksindustry associations and standard bodies

interfaces: mobile wallets, apps, SIM toolkit, USSD…

sophisticated banked

high card and ATM usages

mobile banking for immediacy, simplicity, control of spending

millennials

hyper-connected segment: mobile banking prior to tradtional banking

new mobile services: crowdfunding, virtualcurrencies…

families

need to transfer money among membersregularly

mobile services: P2P, parental control over spends

migrant workers

more driven by cash money

mobile services: international and domestic remittances

unbanked

no access to any financialservices for socio-economicreasons

mobile services: the essentials, simplicity, security of funds, insurance

10 Orange Restricted

retail-oriented mobile payments

proximity payments

NFC

- Contactless payment

- transport & ticketing

- tokenization

- loyalty rewards & couponing

QR codes, cloud based technologies

- e/m- commerce

- online to offline payments

Mobile Point of Sales

- dedicated hardware and apps

remote payments

e-commerce

- tokenisation

- dynamic virtual card numbers

- service/good payments through OTT

retail app payment

- integration of payment in function in merchant branded app

digital goods and services

- application stores

transformation of retail payments

data-driven marketing


3. latest innovations


Mobile Money services

Interoperability to take MM to the next level operators commited to build in interoperable solutions with strong supported of GSMA

in 2014 launched in: Tanzania, Sri Lanka and Pakistan; has just been launched in

Madagascar between Orange, Telma and Airtel

increase transaction volumes and revenues

simplify money transfer for customers and businesses domestically

Pilars of International remittance

key figures present in 60% of emerging markets

299 million registered mobile money accounts,

41% increase compared to 2014

mainly driven by Sub-saharian African countries


FinTech services

FinTech: « finance » and « technology »

USD 12 billion investments in 2014, 3X more than previous year

mainly USA, UK and Ireland

very diverse scope but common characteristics:

data-driven, cost reduction & open platforms

opportunity for mobile operators and banks:

to diversify even more financial service offers

limit risks

existing investments through:

venture capital

start-up incubators

others

personal finance

wealth management

trading

bitcoin

payments

loans

investments in value split by Fintech category

global FinTech financing activity – 2008-2015


FinTech services - examples

created in 2006 in California

borrowing USD5,000 to 20,000 at 7%-30% interest rate (cheaperthan market rate)

business model: 5% commissions

targets:

individuals

small companies

parternship: Alibaba to creditAmerican companies with funds to purchase merchant’s good and furniture

P2P lending crowdfunding

created in 2012 in the UK

funding of start-ups by individuals

business model: shares in the start-ups and 7.5% commission on benefits

targets:

individuals

small companies

parternship: Andy Murray to detectopportunities in health sector

scoring

created in 2012 in France

1. assessing companies’ risk in factoring – selling of accountreceivables to third-party

2. securization of companies’ debtswith big groups and privateinvestors

2,000 companies in 2015 H1, USD 22.5 M invested in 2014

targets:

individuals

small companies

parternships: accounting cabinets, factoring brokers and treasurysoftware editors

wealth management


diversifying individuals’ investments and recevingpersonalized advices

business model: monthly plan at €6.9 and 5% on users’ benefits

targets:

individuals


FinTech services - examples

created in 2009 in Germany

all banking services withdifferentiating factors:

online presence e.g. customers can chat with bankemployees

social media engagement

diverse service portfolio thanks to open API strategy

targets:

individuals

small companies

parternship: Bitcoin to launch the first cryptocurrency bank

“friendly” banking payment app

created in 2011 in the UK, value in 2015 at USD 1 Billion

transferring foreign currency by making sure the money does not actually go across the border to avoid high rates

business model: £ 1-pound commission on transfers up to £200; 0.5% on others instead of 8%-12% in other banks

targets:

individuals

investors: Richard Branson and Xavier Niel


cash-to-goods: users send fundsdirectly to a merchant so that theiracquaintances can withdraw specificgoods

business model: commission on transferred funds

targets:

diaspora

partnership: Orange

created in 2009 by founder of Twitter

credit card payment app using creditcard details or by inserting card in hardware plugged on audio port

managing Apple Pay and AdroidPay services

P2P transfers

salary, taxes and subsidy paymentsby companies

targets:

individuals

companies


Near Field Communication services

contactless payments replacing credit/debit card chip and magnetic stripe

simplify payment experience

increase sales

reduce lines

43 NFC mobile commerce services launched in 2014, 300 in total

Samsung collaborated with Union Pay to launch NFC payment service

Boku e-money license partnered with UK mobile operators: O2, EE and Vodafone to allow customersto pay for public transport tickets, take-away food, coffee cups from mobile phones

Apple pay launch

NFC tags


Near Field Communication services – focus on Apple Pay

How did Apple pay boost mobile payment market?

stimulated competition between mobile financial services and traditional cash, physical cardsproviders

attracted people’s interest

220,000 merchant locations + Apple stores in US

Apple pay functionalities:

contactless payment at points of sales using NFC smartphones and wearables

authentication of user with Touch ID and Secure Element hardware chip related to account

use of tokenisation


4. Orange experience and ambition


Mobile financial services: a strategic vector of growth

‘We have a strong brand , a dense mobile distribution network and good knowledge of

our customers expectations , so an ability to invent a new banking model. Experience in

Africa has shown that we are a legitimate actor to develop this kind of services’ Laurent

Paillassot, Customer Experience Mobile Banking Director at Orange Group

€1billion revenues from new services by 2018

30 million Orange Money customers in 2018

€400 million mobile banking revenues in 2018 vs 2014X8


mobile money NFC Paymentservice

offers Orange Money Orange Cash Orange FinanseOrange Money diaspora

ambitionbecome number 1 in mobile

Money in our AMEA markets

launch mobile banking

offers in 3 European

markets

develop international money

transfer activity for the

diasporas

3 segments of MFS

mobile banking

make the Orange NFC

SIM Card at the core of

NFC services


Orange Money: massive adoption is already there, a platform for broader ambitions…

a mobile money account linked to an Orange phone number

13 countries

13 million subscribers

4,5 billion € of transactions in 2014

50 k points of sale

1

to perform money transfers, payments, and access financial services2

from over physical points of sale for deposits and withdrawals, and directly from any mobile phone without data coverage

for other transactions3

Orange Money presencea dense mobile distribution network

a centralized IT platform to serve all countries


I activate the servicein a few clicks… directly on my mobile

I downloadthe Orange Cash application

I top up my prepaid account instantly via your credit / debit card … via bank transfer

I pay with my smartphonephysical stores or online payments

I get exclusive offers from retailers

Orange Cash: launched in France and Spainyour smartphone, “a new way to pay”

functionalities:

app interface

quick and easy reload by

card or bank transfer

send and request money

check nearby offers and

promotions

manage accounts / access

to complete history of

transactions

NFC proximity payment

online payment with a virtual

card

customer journey

partnerships:

with WireCard and Visa

with merchants and key brands

self service platform: for retailers to join,

create and manage offers


Orange Finanse: conditions in Poland for a mass adoption are there

Poland is European top 1 Market for Contactless Payment

72 % of POS are contactless

30 Million Contactless Cards

up to now 20% of payment transactions are Contactless

a common TSM (Trusted Service Manager) hub for 2 MNOs, T-Mobile and Orange, for Mobile NFC services

80% Market Potential reach by end 2015

NFC payment application available from Banks & MNOs

Getin Noble Bank, Eurobank, Raiffeisen-Polbank, bank BPH and ING Bank Slaski, Alior

T-Mobile Usługi Bankowe(with Alior Bank), Orange Finanse (with mbank)


Orange finanse: a mobile bank account

I get onboard easily :through a complete channel mix:

POS, Telesale, Web portal & mobile application

…for a full mobile banking experienceCurrent accounts and payment cards, deposits, credit

products…

and I benefit of tailored rewards Receive notifications about exclusive adapted deals

and offers around you at our partner merchants

I downloadthe Orange Finanse application

customer journeyfunctionalities:

app interface

manage accounts / access to complete

history of transactions on current account,

saving account, overdraft

one-click cash loan

plastic debit card / Sticker

NFC debit card

credit card

100% mobile onboarding

Mobile NFC payment

Money transfer to any phone number

Cardless ATM withdrawal

Check nearby offers and promotions

Top-up a prepaid telco account

partnerships:

partnerships with merchants and key

brands

partnerships with mBank and

MasterCard


International development: Orange partnership with Jiring / MCI

Jiring is uniquely positioned on the Iranian market to play a leading role in Mobile Payments

Mobile Banking : 8 banking partners

Mobile internet gateway : 10 PSP partners

Mobile wallet services : 34 Million registered customers

Main opportunities identified

Create new banking experience 100% mobile in partnership with Banks

Joint partnerships with Fintech for disruptive models: Personal Finance Manager, new scoring models

Develop m-commerce and international transactions

Promote NFC technology and coordinate NFC deployments in Iran

Banks, Transportation companies

Regulators

Device manufacturers


conclusion


conclusion – Key drivers of partnerships between Banks & Telcos

Teclos assets

Telcos can bring key assets to a successful partnership with Banks

Large customer base & distribution networks

Acces to the device to build seamless customer experience

Customer datas (KYC and ARPU history)

Real time technologies

Banks assets

Banking licence

Cardholder customer base

Expertise in account management, credit and savings

An opportunity to

build a complete

suite of Mobile

Payments services

for the Iranian

market


thank you

با تشکر از شما

ecosystems of mobile paymentsconf.mbri.ac.ir/ebps5/userfiles/file/پاورپوینت__ها/ر وز...

Documents