How to get the informal sector to switch
from cash to mobile money?
Yaron
Assabi
yaron@dsg.co.za
yaronassabi

Hidden
Agenda
Ø Why consumers want mobile
service at lower fees and with
personal benefits based on
usage
Ø Cash is not king, it is dangerous -
bad for the environment and
expensive
Ø Mobile: the ideal platform for
micro-payments
Ø Relevant technology can change
behaviour
Ø Small change to make a big
difference

Our Vision
“ A world where everyone, no matter who they are or
where they live, can gain easy ‘mobile’ access to
affordable basic financial services to improve their
lives and raise their standard of living.’

Critical Success Factors
Ø The informal business sector is primarily cash based across Africa
Ø Mobile Money integration and mCommerce is not easy for a merchant and
therefore should be simplified via software that gives access to multiple
payment options or CSP ( Commerce Service Provider) $5&11#-$F)&1$"1)#-
($&-#$."*34$&3.$()"/?.$1)&1$0)&34#)'8$F)'$3"1G
Ø On Device App that is cross platform
Ø Security , Device Management and remote wiping
Ø Vertically focused app for SME providing the same service as a standard POS
but on the mobile device with smart SaaS based features & reporting
Ø Usability & Quality Management

Cash is NOT King it is Dangerous and Expensive
ü Have you ever bought a Nando’s meal in Nigeria ?
ü Africa is primarily a cash based economy due to vast dispersed geography it is
not economical to have a large branch network ( e.g. 2/3 of Namibia is desert)
ü The mattress is still a major safe deposit box – it is expensive and dangerous
ü Violent crime statistics will drop once we migrate to electronic money in Africa
and it should therefore be a high priority.
ü Electronic money will have a positive impact on our environment. ( eliminate
carbon emission on travel , printing of money etc..)
ü There was a time when Banks stopped reporting incidents as there were too
many -they were worried about consumer confidence – if Banks could spend
less on security, costs will drop and they could focus on service

Mobile is the ideal platform for micropayments
ü Mobile Networks cover most populated areas and therefore are ideal for
enabling mobile commerce and payments
ü Pre Paid wallet is equivalent to a current account
ü It is easier to top up airtime remotely and keep currency electronically vs.
cash.
ü A Mobile network is designed for micro billing ( per second billing )
whereas credit cards R15 minimum transactions.
ü The world is moving towards pay per use –” 20p to use the toilet at
Paddington station “ – what happens when you do not have change?

Unbanked Opportunity

Mobile is the ideal platform
for micropayments
ü Mobile Networks cover most populated areas and therefore
are ideal for enabling mobile commerce and payments
ü Pre Paid wallet is equivalent to a current account- very little
credit card penetration in Africa which is an opportunity for
the MNO ‘s to take the lead in Mobile App Eco System
ü It is easier to top up airtime remotely and keep currency
electronically vs. cash.
ü A Mobile network is designed for micro billing ( per second
billing ) whereas credit cards R15 minimum transactions.
Most Apps
ü The world is moving towards pay per use –” 20p to use the
toilet at Paddington station “ – what happens when you do
not have change?

Pay by Phone and control your eco foot print
9 | Touchatag |August 2009

Mobile Development Partnerships

How Mobile is changing shopping ?

Prefer Mobile Phone over Wallet?
ü The banking and credit card industries
have noticed that it takes an average of
26 hours for a user to (notice and) report
a lost wallet. Yet if you lose a mobile
phone, the average time to report it is 68
minutes.

Market Overview- $151 billion this year

Mobile Lifestyle
“Give people more control over their
banking and you’ll win their loyalty. That’s
because mobile is not a channel so much
as a way consumers live their lives and
consequently, the way banks have to
conduct their business.”
Douglas Brown
Senior VP Mobile Product Development
Bank of America

Applications will determine winners

Mobile Payment Processing
à Accept credit, debit, mobile money & stored-value cards in the field
à Software only solution – no card-swipe hardware required
à Card information entered onto SmartFORM™ on the handset
à Immediate authorization
à Mobile receipt printing can be made available (Bluetooth® printer
required)
à Compliant with highest levels of industry security standards
à Eliminate cash from the system
Increase Cash Flow
From
Shortened
Receivables

Fuel /Tax Calculation & Reporting
à Interface with SARS efilling
à KM per L Report
• Etc.
à “Petrol card like “ integration
à Electronic driver logs
à Provide valuable reporting
Reduce Manual
Reporting Costs

Customer Benefits
T
ransfo
Reduce Expenses p ro d u rm o u
à Complete more transactions per day ct i n n r
into y ovatio
à Complete transactions quicker our m n
à Reduce mPos costs leade arket
à Ensure accuracy rship!
à Eliminate paper-based reporting
Increase Cash Flow
à Increase market share, customer service & revenue
à Optimize inventory levels
à Increase revenue per merchant
à Faster & more accurate invoicing
Improve Safety/Security
à More affordable
à Faster response times

Security
Ø Security is always a consideration when implementing a POS solution.
Ø The primary concerns are employee access to registers, adherence to security
standards, & securing the saved transaction record in the database through
compliance with data protection standards.
Ø When migrating to a mobile POS environment, the concerns are the same.
Ø The mobile device will operate within a mobile data network so capturing
customer payment data and transmitting using 3G network is inherently risky.
Ø The Payment Card Industry Data Security Standards (PCI-DSS) have specific
provisions and additional processes that must be implemented in order for a
retailer to be allowed to mobile payments .
Ø The connection should use strong encryption through HTTPS and should
adhere to the PCI-DSS standard protocols to manage the transaction.
Ø Merchant / Employee authentication to the mobile device should be robust and
tracked through to the transaction level.
Ø Once the transaction is complete or cancelled, the system should delete the
transaction record from memory only available on SaaS environment for recall.

Business Value
g
Real-­‐<me
knowledge
ar ke0n Targeted
adver<sing
ile
M
Mob Enhanced
brand
loyalty
vice
ustomer
Ser Know
your
customers
Mobile
C Know
their
preferences
Know
your
customers
Give
them
more
of
Know
their
problems
what
they
want
Proac<ve
help
where
needed

Why customers leave?
They don’t leave because
there’s a compelling reason to
leave.
They leave because there’s no
compelling reason to stay

Mobile Loyalty and Rewards

Use phone camera to scan image and see discounts
23 | Touchatag |August 2009

Cross Platform –Common API’s
Deliver web applications to any device
Reach the maximum number of users
Regardless of their choice of device
Browsing, Messaging, Clients, USSD…
Mobiles, PDA’s, PC, Games Consoles…
With minimum effort
Adopt a “Write Once, Deliver Anywhere” strategy
Standards based integration – W3C DIAL (XDIME)
Re-use branding templates across multiple systems
Automated support for new devices
With high quality user experience
“Optimize Up” to the capabilities of each device
Take advantage of latest device capabilities
Graceful fall-back for older devices
Use device knowledge within applications e.g. don't offer video if
the phone doesn't support it
24

Mobile Learning –Training of Merchants

Background
ü DSG Secured exclusive rights for Africa , Middle East & Indian
Ocean
ü US-based company with global presence that provides a full range
of software testing services to customers of all sizes
ü Provides real-world, “in-the-wild” testing services for web, mobile,
and desktop apps
ü Utilizes a global community of professional software testers
ü Not a traditional QA outsourcing or off-shoring company
ü Act as extension & complement to in-house QA activities

Some customers
27

Crowd -sourcing usability
Testing types – Mobile, Web, Desktop
ü Exploratory
ü Functional
ü Usability
ü Hybrid-load testing
ü Localization and internationalization
Real-world coverage – broad matrix
ü OS/Browser/3rd Party Apps
ü Location-based
ü Language-based
ü Handset maker, model and wireless carrier (for mobile)
ü “In-the-wild” testing vs. “In-the-lab" testing
Consumer & SMB-facing applications
ü Web, Desktop and Mobile

Have you tested your app?

It
is
all
about
EXPERIENCE

From donor funded business models
philanthropy
investment
In traditional two pocket thinking, the
money you invest flows back to you.
Giving thru philanthropy flows away,
with no return.
Source : Good Capital

Self sustaining business models-recyclable giving
When good and capital come together, the money flows
back to you after its made an impact in the world. It’s
recyclable giving; more change for your buck.
Source : Good Capital

Electronic channels provide full audit trail of ROI
Rather than wondering "
What your money is doing"
in your name, you have the
confidence of knowing
--by creating accountability for
good impact, and
accountability for financial
performance"
"
"
"
"
"
Source : Good Capital

Incentives help drive adoption
Incentives were a strong motive for younger people to sign up for mobile banking
services, which allow them to keep track of checking and savings accounts on their
cell phones. Of respondents to a survey, 40 percent of people 18 to 45 said
incentives tipped the scales when it came to picking mobile banking.
SOURCE: AURIEMMA GROUP

Blended Value High Impact –10 % of PBT is
re-invested back into the community
Old style social capital
In the old style double bottom line view,
the social value hides behind a spreadsheet.
The new wave
The total blended value becomes clear.
as we acknowledge our desire for impact
Source : Good Capital

Small change will make a BIG difference
ü Select your community based NPO and all transactions on our
platform contribute towards your charity via loyalty points .
ü Round up your transaction – small change to make a big difference
ü Everytime you contribute we provide you with loyalty points and
account for how much good you have done for the community
through the platform for personal reward and recognition and tax
purposes
ü M-commerce through digitalmall.com , mticketing, prepaid airtime
sales
ü Micro franchising – creating job opportunities- we will stimulate
buisness ideas and support entrepenuers in m-government , m-
health , m-learning, microfinance ( Safaricom has over 9,000
Mpesa dealers) .
ü Entrepreneurship development program
ü Mobile application development partner program
ü Microbilling for mobile content and applications which is key to
success of the eco-system