Vodafone M-Pesa
Impact of mobile money
on Romanian society
Mar 2015
Dana Popescu
General Manager M-Pesa
Serviciul M-Pesa este furnizat de Vodafone România M-Payments S.R.L . autorizata de către
Banca Naţională a României si înregistrată cu nr. IEME-RO-0002/16.12.2013 în Registrul
Instituţiilor Emitente de Monedă Electronică.
What is M-Pesa and why do we need it in Romania?
130% is the penetration level of
mobile telephony in Romania
Each Romanian
has a mobile
phone
Still low level of
financial
services
adoption
43% of Romanians (>15 yo) do
not use financial services due
to lack of proximity and prices
M-Pesa is Vodafone mobile-money transfer
and payment service which do not require a
bank account, internet connection or a
smartphone
Wh
at?
W
ha
t?
Opportunity Approach
Vodafone is well positioned to address customer needs and build a successful mobile money business together with its Partners
M-Pesa can accommodate
customers expectations:
safe, fast, easy available,
cheap service for money
transfer
M-Pesa is a strong and
sustainable differentiator for
Vodafone, addressing clearly
identified customer
segments
M-Pesa can evolve into part
of a wallet solution for specific customer segments
High % of pop. unbanked Cash driven society
Large int. remittances market [EUR bn]
Large domestic money transf. mkt. [EUR bn]
AU
7.0
99%
HU
8.6
78%
CZ
8.9
81%
RO
18.2
48%
52%
Unbanked
Sep 2014
6,224
84%
16%
Sep 2013
5,960
15%
85%ATM withdr.
Card tranz.
2011
1,27
2014e
1,52
2013
1,43
2012
1,35
2014
8.8
3.7
2012
9.2
4,5
4.7
2008…
10.7
5,9
4.8
3,9 4,3
7.5
3.5
2013
InformalOfficial
Identifying key segments to target - Core adopters of money transfers
406 April 2015
Parent
Displaced
worker
Parent
(household)
Elders
Student/
Youth
Youth
Parent to Student/ Pupils
studying in other locality
than home
Friends
1
2
4
3
1
Family to Elders living in
different area
2
Displaced worker sending
money back to family3
Friends transfers - Family
members sending gifts /
support to other family
members
4
Key end-users segments doing one-to-one transactions, whether sending money
to family members, among friends or for informal transactions
End-users
core adopters
of p2p
transactions
5
Secure and fast
No registration fee
No monthly fee
Multifunctional Send money Pay bills Recharge prepaid Pay at merchants
Availability 24 x 7 rural & urban No need for internet access No need for bank account/
card account
What can you do with M-Pesa?
SENDER – card
holder(abroad or domestic)
6
www.m-pesa.ro
Jo
urn
ey
be
ne
fits
• Easy to use and
access from a
secured web
interface
• No charges to
send money (only
exchange fee of
the bank from
EUR to Ron)
Customer Journey – Card2M-Pesa End2End Flow
RECEIVER(domestic)
• Always in control of
your money – in m-
pesa account
• Easy to receive
money from abroad
• Cost me nothing to
receive money in my
m-pesa account
M-Pesa partners’ benefits – distributor
• A new source of revenue
• Increased traffic in partner’s locations
• Market study shows that M-Pesa has the ability to attract new customers in Distributors’ portfolio.
M-Pesa partners’ benefits – merchants
Lower commission for payment transactions -compared with bank POS
Reduced cost for cash management
High availability of fundscollected via M-Pesa payments
Customers benefit of
one of the most
secured payment
method – a key
benefit mainly for
online payments
1 Transfer bani2 Retrag bani3 Depun bani 4 Reincarcare5 Plati facturi
6 Plati la comerciant7 Contul meu
8 Tarife M-Pesa
M-Pesa increases the level of financial inclusion, thus acting as a
driver of economic growth
M-Pesa stimulate the local economy and generate new jobs in the
distribution network
M-Pesa streamline the time and resources needed for sending
money and thus increase quality of life day-to-day customer
M-Pesa ensure transparency and control over the flow of money
M-Pesa benefits for Romanian market
9
• Location based
advertising through
SMSs sent in target
proximity
Mobile advertising: geo-location
10
Mobile advertising: geo-location
11
• Location based
advertising
through SMSs
sent in target
proximity
Mobile advertising: geo-location
12
• Location based
advertising
through SMSs
sent in target
proximity
“SMS INSERT”
SMS sent after
Cartela
Vodafone
recharge
Mobile advertising: SMS Insert
13
«Ai incarcat 3EUR. Credit total:
4.5EUR.
Trimite minim100 de lei prin
M-Pesa celor dragi si primesti
un Mega Bonus. Detalii pe
www.m-pesa.ro.»
Multumesc