[MobileMonday Switzerland #2 : Mobile payments and banking.] Simon Cavill is an acknowledged industry expert in mobile phone, payments and digital broadcasting with over 25 years of industry experience and a raft of patents to prove it. As the CTO of Mi-Pay, Simon was instrumental in the creation and development of this company from start-up to a mature mobile payments business with operations on four continents. http://www.mi-pay.com/

1. Africa today - Europe Tomorrow?
Deploying the Last Mile of financial services
Simon Cavill
Mi-Pay Ltd

2. At the forefront of the hottest
trends in payments worldwide
• Mobile Initiated Payments & Pre-Paid Top-Up Outsourcing
• Domestic & International airtime and person to person payments
• Meter Initiated Payments (Pre-paid Utilities)
• Micro Payments (e-Wallets issuing & Micro-finance Services)
• Mobile & Internet Payments (Service Provider)
• Media Interactive Payments (Mobile Digital Broadcast & TV)

3. Mi-Pay – Mobile Payment Veterans?
• Specialists in secure mobile initiated financial services and
payment applications
• 4-year track record of deploying mobile applications
worldwide
– 18 countries; 5 languages
• Working with
– Banks & Core banking software providers
– Payment services providers
– Mobile operators and MVNO’s
• Implementation partners include
– Logica, Unisys, Isys Mobile, Masabi, FE Mobile
• Customers include
– Cliq Radio - Live music downloads from UK radio stations
– Misys and Temenos – retail banking software suppliers
– Mobile operators across Europe, The Middle East and Africa
– And several projects in course of completion in Sudan, Kuwait,
Tanzania, Ghana, Senegal etc.
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4. Choices, Choices…
The Rich have a wide range of choices – The Poor do
not…
The Rich have immediate access to a wide range of
payment methods and financial services – The Poor use
cash only and have very limited access to financial services
The Rich trade effortlessly – The Poor would like to if they
had the tools and services to do so
There are more Poor people in the world than Rich ones…
Mother is the necessity of invention – There are many interesting and innovative
uses of mobile phones across the developing world largely driven by the lack of any
other infrastructure available to the mass of potential consumers.
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5. This is Our Market…
That Lady in the blue dress on the top right is our key client – She is a pre-pay top
up vendor amongst other things and is the focus of our B2V (Business to Vendor)
strategy. We either get her a special SIM or side-load our Java applet onto her
phone supplied either by the operator or distributor she works for. This application
enables her to provide a direct electronic top-up channel to her customer base
removing the need for her to sell coupons or scratch-cards, although it does not
actually stop her doing so. The same device also provides basic stock control and
enables her to act as a mobile ATM and/or deliverer of financial services to her
local client base.
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6. And it’s a Large Market…
2.5 Billion
???
Lots more!!
Potential market of 6.3 Billion people
Do not underestimate the millions of consumers across the World that currently
share a single handset between them. Bringing financial services to these shared
users is a real technical challenge!
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7. Some of whom are short on resources…
are
Our challenge is to delivery a wide range of financial services to people like this….
No access to a bank or any other financial infrastructure in daily life as in the
developing World, most bank branches are confined to cities. The only device
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8. In the most unusual places…

9. Where the phone is often the only contact point for
financial services…
There are a whole range of drivers impacting the adoption of mobile initiated
payments and financial services to both existing and potential mobile phone
consumers around the world.
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10. So what are the Real Challenges?
Bringing a variety of financial services to potential consumers
across the developing World

11. here’
OK, So here’s the Technology Slide
Voice (IVR) SMS
Universal but requires careful Works on 3 Billion handsets
design Used almost universally
Voice recognition for secure ID only Less secure
Simple and effective Encrypted SMS adds security
USSD
Universal across all GSM
devices
Menu driven - easy to use
More secure than SMS and
WAP Secure Java Applet NFC APPLICATIONS
Best client experience Tying Ad views to payment opportunities
Flexible and brandable Small retail payments from SVA’s
Extremely Secure Ads / promo / service discovery
Multi-factor authentication Instant free content in retail stores
3Des encryption locally and in transmission Transport
No sensitive data on handset
Simon’s Law – There are only three universal delivery platforms for the mobile
handset that can reach every mobile phone consumer – SMS text messaging,
Voice and USSD. Everything else is a risk at it relies on the consumer having a
phone that can initiate an IP connection.
Mi-Pay uses Java applications where they can be deployed to “known” groups of
users such as vendors with suitable handsets.
Consumers interact with Mi-Pay’s mobile initiated financial services through SMS or
USSD typically. An IVR system can be supported where appropriate.
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12. The Last Mile of Financial Services
Micro- Bill Micro- Utility
Insurance Payments Finance Payments
Pre-Pay Person to Pension International
Phone Top Person Distributio Money
Financial up’s Payments n Transfers
Services
Education Airtime as Tax International
Fees Currency Payments Airtime
Transfers
Pre-Pay Funeral Banking the Unbanked
Fees
MOBILE MOBILE
AGENT AGENT
Agent Java applet,
Networks USSD
USSD, SMS,
Consumers IVR (Voice)
R
$ R
$
R
$
Mi-Pay
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13. Mobile Money Transfer
Mi-Pay’s strategy is to work with and through mobile operators and financial service
providers across the world to build and maintain mobile initiated money transfer
services that combine the simplicity, cost advantages and reach of the Hawala type
schemes with the strengths of a financially compliant service run through the locally
trusted brand of the mobile operator or bank as appropriate.
The system has unique advantages as it enables the operators to hold the inbound
remittance flow of money offshore and then offset this value against the locally held
vendor cash balances. We then instruct the vendor to issue cash to the recipient
on the production of a SMS containing a one-time PIN plus their national ID card to
the vendor.
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14. Airtime as Currency
In many places, the operator is the trusted brand and has an enormous reach both
politically and geographically. We can use this to potentially create a separate
currency based on airtime that can be transferred between consumers or redeemed
for cash at certain pre-pay vendors who in turn hold the airtime minutes and resell
them to other customers.
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15. forward…
Our current road map going forward…
Educational loans/ Micro-investment
Group finance
microloans Savings
Household Life insurance Pensions
Individual
microloans
Health insurance
Housing loans
remittances Consumer finance
Target
Clients
Grants and
subsidies Agricultural
finance
Individual
microloans leasing
Small Business
Group Life Weather
microloans insurance Crop insurance
insurance
Available today Product Availability Early planning and
experiments
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16. What’s the relevance of all this to Europe?
Making it all work
Large scale deployments will provide working models
Manage fraud, compliance, & dispute management – Indemnified services?
Airtime/Money Transfers
Family / friends can top up / recharge phones of relatives overseas from their own
handsets
Transfer small amounts of money instantly to those with or without bank accounts
Airtime recipients can use received airtime as “currency” forwarding to others on
a domestic P2P basis
SEPA – P2P Transfers
Direct transfer of small amounts between individual using their handsets
Simple Bill presentment and non retail payments
NFC is still a long way from practical deployment
Practical experience gained elsewhere will be key…

17. You…
Thank You…
Visit us on: www.mi-pay.com
Or contact us directly
Simon Cavill - Mi-Pay Ltd
Tel: + 44 1483 794920
Mob: + 44 7733 307123
Skype: simoncav
Email: simon.cavill@mi-
pay.com
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18. Mobile Money Worldwide
International / Domestic Airtime and Money Transfer
Currently developing & deploying white label systems for operator groups across four continents
Can receive payment requests from over 100 countries
Fully compliant with all appropriate local & international regulations
Can be provided on an indemnified basis - we take on fraud and other risks
Operator centric approach minimizing use of banks and other money transfer services
Airtime Transfers
Family / friends can top up / recharge phones of relatives overseas from their own handsets
Recipients can use received airtime as “currency” forwarding to others on a domestic P2P basis
Money Transfers
Unique approach - Offset inbound hard currency transfers held offshore against pre-pay cash already held in
local currency
Low cost approach maximizes revenues whilst enabling consumer to use the service for “free”
Cash transfers paid locally to recipients through operators top up/recharge vendors
Includes bill payment and other financial services through agent network
Mi-Pay is extremely active in this space, currently working with
operator groups in Europe, the Middle East, Africa, Asia and the
America’s to deploy a mixture of airtime and money transfer
systems.
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19. Future…
The Future…??
International / Domestic Airtime and Money Transfer
Already starting to interconnect “Sending” and “Receiving” operators
National Payment Switches
Airtime Transfers
Could airtime be the ” Euro” of the developing world?
Direct linking of people’s pre-pay accounts to others overseas – Auto top-up
Financial Services
Using existing or parallel agent networks to roll out financial services nationally
Pension Payments
Healthcare survey’s and Insurance schemes
Savings plans
Huge interest in Micro-Finance from overseas development agencies
There are already interesting discussions around the creation of
exchanges between non competing operator groups to enable the
transfer of airtime and/or money across the World.
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20. are…
Who we are…
Established in 2003 on the back of a friendly exit from LogicaCMG
UK HQ and secure data centre near London. Other offices in;
Sibiu, Romania - Merchant support, finance & back office
reconciliation
Dubai UAE - Mid/Near East & Africa sales, secure data centre, local
project management and support
Privately owned. Minority shareholders include:
VocaLink (National UK Payment switch owned by Bank of England,
Barclays and Natwest and other UK clearing banks)
Retail Decisions - Global Fraud screening company
Close Brothers Investment Bank
Founder member of GSMA Mobile Money Transfer Vendors Group
Offer indemnified top-up payment services (UK & Europe)
Web, SMS, Java, WAP, USSD & IVR
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21. do…
What we do…
Provide secure, white label services on an outsourced basis to mobile
operators, the finance industry and media owners across the World.
Manage direct pre-pay top up services for mobile operators and other pre-paid
account services - from bank accounts, cards, or cash over the counter
Domestic Peer to Peer mobile money transfer services in two major markets
Mobile e-wallet in several markets for utility bill payment, pre pay top up, loan
funding repayments and other services
International mobile cash remittances in five transmission corridors - UK to
India, UAE to Asia, EU to EU, EU to Africa, and USA to Latin America (2009).
Current clients include Vodafone, Orange, Du (Dubai), Mas Vida (Spain
MVNO), KPN/Telfort (Holland), Carphone Warehouse and Tesco Mobile (UK
MVNOs), Cliq (UK Radio), Luup, 6Telecom, and other major operator groups
Offer indemnified top-up payment services (UK & Europe)
Web, SMS, Java, WAP, USSD & IVR
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