retailers and consumers adaptation to mobile payments
TRANSCRIPT
Retailers and Consumers: Adaptation to Mobile Payment – Bangladesh Perspective
S M Zahadul Arafin | Head of B2B, Grameenphone Ltd. March 16 | Kuala Lumpur, Malaysia | 8th Mobile Commerce Summit Asia, 2016.
Country Overview on MFS
28 Bank permitted for MFS
20 Bank started MFS operation
30.24 Mill Registered Customer
547,813 Registered Agents Source: - Bangladesh Bank (Central Bank of Bangladesh) - Mobile financial services in Bangladesh, April 2015, US AID
Competitive Landscape of Mobile Payment in Retail- The Story Begins
Behavioral Adoption: Un-banked Business Segment challenges
Transaction Limit and Service Charge of Personal Wallet is suffice for them
Business Wallet (Merchant Plus Wallet) with a
Service Fee is not an issue for them
Behavioral Adoption: Un-banked Business Segment challenges
Highly Cash driven, Low Education level, No Process at all, No business Documents, Not habituated to
Electronic Payment, Mostly Un-banked even at personal level, Difficult to Change and Adopt new things, Not
ready to give any Fee for service.
Challenges with Consumers
Customers of these segments are no challenge because most them are Convenience Seeker, visiting super shops or have
online options, ready to Pay a Price for convenience
Challenges with Consumers
Customers of these segments are a challenge because most them are Fighting for Basic, visiting regular shops nearby and not
ready to Pay a Price for convenience
Merchant Segmentation and Characteristics
Sup
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Me
rch
ant
Smal
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ant
Characteristics: - Habituated with electronic type of payment i.e. card - Habituated with providing service fee - Want to reduce cash dealing - Process driven, operated by employee - Mostly banked
Characteristics: - Highly cash driven - Traditional and operation run by self along with one or two
employees - Unstructured and not habituated to electronic payment - Mostly un-banked even at personal level
Ground Need
Remote payment
Fake Note Security
Change Incremental Sale
Savings
How to Overcome the Challenges?
Merchant Plus Wallet
Customer Wallet
Small Merchant Wallet
Bank
Payment from customer wallet
No operational cost. service/settlement is free
Limit 15,000 BDT per month
No start up cost for opting service
Distribution House
DISTANCE LOCATION
Service/settlement fee
No Limit
Direct Bank Settlement
Payment is free
Whereas Cash-out is charged
What is next?
- Making better digital experience
- Overcome literacy issue through technology
- It should economically making them better off
- Helping their business to grow
- It has to be assimilated as their basic need
- Managing fraud
*All the pictures has taken from internet