1. International Practices on Mobile Payments

2. SCOPE Evolution of Mobile Payments. Status Report. Future Direction.

3. Mobile Payments- Currently Prevalent M-Commerce: Mobile phones linked to credit/debit cards can be used to make payments typically for transportation, vending machines etc. E-Money: Cash loaded in the mobile phones at service provider outlets. Consumers use this virtual cash as real value for all types of transactions. Banking Channel: Mobile phone used for accessing the bank accounts. All payments are routed through the bank.

4. Mobile Payments : Different Perspectives Developed World Complimentary to the traditional payment systems. Flexibility, Ubiquity and Convenience. Enabler for wide range of M-Commerce Services. m-ticketing, m-retail, m-banking etc. Suitability for any payment amount levels. Payment systems linked to individual Bank Accounts. Markets reflect technology orientation. Driven by the industry.

5. Mobile Payments : Different Perspectives Developing World Lack of alternative solutions. Accessibility and affordability. Limited micro payments. Concept of E-Money is very popular. Micro-Financing. Driven by MNOs.

6. Industry Initiatives Mobey Forum MET Forum NFC Forum PayCircle IrDA

7. Mobey Forum Preferred Payment Architecture (2003) Remote Payments Server based Wallet Local Payments Bank issued EMV card Requires dual chip phones

8. EUROPE EC draft blueprint (2003). SimPay service (2005). Pan-European Universal Mobile Payment System (UMPS). Applicable to Any Payment Scenario Suitability to any payment amount level Availability for every mobile phone user Employment of existing standards EC Sponsored many developmental projects.

9. SEMOPS A Pan-European effort for cross-border secure mobile payment service funded by eTEN Program. Cooperation of Banks and MNOs essential. Built on real-time credit push concept. Users (customers or merchants) interact only with with its trusted bank or MNO. Banks and MNOs interact through the Data center. SEMOPS Transaction Flow

10. SEMOPS Commercially launched in Hungary Pilots have been completed in Greece and Italy. Commercial rollout in Greece and Italy planned in 2009.

11. EUROPE PayBox (2004)- Austria Operator Driven (Mobilkom) and e-money based. PosteMobile (2007)- Italy Bank as Mobile Virtual Network Operator (MVNO) Projected as early example of second-generation remote payments, coupling payments with mobile digital signature infrastructure to support new, advanced mobile services.

12. Paste Mobile EUROPE PayPal Mobile (2006)- UK Telco Centric E-Money Institute Bank Centric MVNO Third Party Driven PayBoxPayPal Mobile

13. Asia-Pacific Most advanced M-Commerce market in the world (Test bed for majority of m-Commerce & m-Payments/ Trials)Japan Mainly proximity payments NTT DoCoMo M-Wallet (FeliCa chip) - 20 million subscribers KDD M-Wallet - 5 million subscribers Two Years ahead of the rest of the world in contact less adoption. m-Payments penetrated almost all sectors. (Transportation, Retail, Hospitality, Finance and Government)

14. Asia-Pacific South Korea Early initiatives by the carriers and banks fell apart due to mutual distrust. Early initiatives by the carriers and banks fell apart due to mutual distrust. Payment gateway service providers became prevalent. Payment gateway service providers became prevalent. Move towards Contact less technology in 2007. Move towards Contact less technology in 2007. SKT - Visa, KT Freetel – Mastercard. Solutions were designed to migrate from USIM to NFC when it is widely available in 2008. m-Payments penetrated almost all sectors m-Payments penetrated almost all sectors (Transportation, Retail, Hospitality, Finance and Government)

15. Asia-Pacific Hongkong & Singapore Hongkong & Singapore Smartcards with Sonys Contactless FeliCa chip Taiwan Taiwan Smartcards : VMA, Paypass China China (Biggest in subscriber base) China Union MobilePay India India Paymate, mCheck, Obopay, atom

16. USA Mobile Payments were slow to take off because of availability of other alternatives. PayPal Mobile (2006). M-Banking. Moving towards NFC based contact less Mobile Payments (m-ticketing, m-retail). Stands Third (after Japan and South Korea) in adopting contact less technology. Latin America M-Banking (Brazil, Argentina)

17. NFC enabled Mobile Payments Forecast for Next 12-24 Months (NFC Forum) Population ASIA67% EMEA57% AMERICAS54%

18. Mobile Payments in Developing World (Philippines) Smart Money(2001) SMART Communications & Branco De Oro (BDO). Cash-In and Cash-Out at SMART and BDO offices and at a range of accredited retailers. Maximum limit of P50,000 (US$950) maintained. G-Cash(2004) Globe Telecom. Cash-In and Cash-Out at G-Cash partner merchants.

19. SMART MONEY Cash deposits and withdrawals. Transfer of credit to prepaid accounts (SMART Load). Transfer of cash to and from users. Transfer of airtime credit to and from another user. (SMART Pasa Load) Cashless purchase at wide range of shops where retailers have SMART Money account. Direct credit from employer payroll. Bill payment. Inward international remittance from overseas (SMART Padala). Cashless purchases at at wide range of shops with MasterCard debit card.

20. SMART MONEY - Numbers Retailer Partners - 700,000 Retailer Partners - 700,000 Transactions volume - US$100 million per month. Transactions volume - US$100 million per month. International remittance - US$50 million per month. International remittance - US$50 million per month. Added cash float in BDO - US$10 million. Added cash float in BDO - US$10 million.

21. Mobile Payments in Developing World M-PESA- Kenya(2007) WIZZIT- South Africa(2006) Celpay- Zambia (2004) - DR Congo

22. Mobile Payments in Micro-Finance CARD – NGO Project (February 2005) Based on G-Cash Platform. Cash-in and Cash-out at authorized G-Cash retailers. G-Cash retailers authorized for disbursement of loans and collecting re-payments. BENEFITS Improved efficiency by reducing field collection effort and costs. Reduction in risk faced by the officials carrying cash. Savings to the borrower who has to travel far to make payments over-the-counter in some cases on weekly basis.

23. Mobile Payments in Micro-Finance RBAP – TAP Project Joint venture of RBAP-MABS and Globe Telecom. Based on G-Cash Platform. Rural Green Bank of Caraga (April 2005). Training provided to 87 rural banks (October 2005). Kenya The Success of M-PESA in handling bulk disbursements of payments from organizations to employees led to the trails for disbursement and repayments of micro loans.

24. Examples of Financial Inclusion Projects Country Provider Model Afghanistan Roshan (mobile operator) M-banking Brazil Caixa Economica Federal (bank) Card-based Banco Bradesco (bank) Card-based Chile BancoEstado (bank) Card-based Colombia Banco Caja Social (bank) Card-based DR CongoCelpay (bank) M-banking India SKS Microfinance (MFI)M-banking State Bank of India (bank) M-banking Kenya Safaricom (mobile operator)M-banking Equity Bank (bank)M-banking Malawi Opportunity International (bank)Card-based First Merchant Bank (bank)Card-based MexicoBanamex (bank) Card-based Source - CGAP

25. Financial Inclusion Projects Contd. Country Provider Model Mongolia XacBank (bank) M-banking Pakistan Tameer Bank (bank) M-banking Peru Banco de Cr é dito (bank) Card-based Philippines SMART (mobile operator)M-banking GXI (mobile operator)M-banking Russia Tavrichesky Bank (bank) M-Banking Senegal Ferlo (third-party) Card-based South Africa MTN Banking (bank-MNO JV)M-banking WIZZIT (third-party)M-banking Tanzania Vodacom (mobile operator) M-banking Uganda Uganda Microfinance Ltd. (MFI) Card-based Source - CGAP

26. Conclusions Perception of Mobile Payments is different in different parts of the world. The Developed world is moving towards NFC enabled contact less Mobile Payments, with industry consortia (GSMA, Mobey Forum) advocating replacement of SIM with multi application UICC to support NFC. Cross-border payment services like SEMOPS continue to prevail as remote payment services.

27. Conclusions E-Money will continue to be the driver for Mobile Payments in under developed nations. Mobile Payment solutions for Financial Inclusion needs to be affordable and operationally simple to have maximum acceptance form the communities. With its mixed population, India requires different mobile payment solutions to different communities. The role of MNO is critical in implementing Financial Inclusion through mobile payments.

28. THANKS