1. Value Proposition for Prepaid Market Segmentation
Rich Bialek, CEO
June 24, 2015

2. Current State of Prepaid in Africa
Tunisia
Morocco
Algeria
Lybia
Egypt
Cape Verde
Mauritania
Mali
Senegal
Niger
Chad
Eritrea
Gambia
Sudan
Burkina
Faso
Guinea-Bissau
Djibouti
Guinea
Nigeria
Sierra Leone
Cote
d‘Ivoire
Ethiopia
Ghana
Central
African Rep.
South
Sudan
Benin
Somalia
Liberia
Cameroon
Togo
Uganda
Equatorial Guinea
Congo
Kenya
Sao Tomé and Principe
Gabon
Democratic
Republic
of the Congo
Rwanda
Burundi
Tanzania
Advanced
Seychelles
Angola
Comoros
Malawi
Zambia
Developing
Zimbabwe
Namibia
Mozambique
Mauritius
Emerging
Botswana
Madagascar
South Africa
Swaziland
Lesotho

3. Prepaid Needs by Market
Emerging Markets
General Purpose Card
Developing Markets
Basic Segmentation
Advanced Markets
Advanced Targeting

4. Segmentation – Developing Markets
For developing prepaid markets, identify segments that meet three criteria:
High profit potential
Large customer base
Relatively easy to launch
Two examples are Travel and Salary card programs.

5. Travel Cards Justification Marketing
High profit potential with international travel
Market to business and holiday travellers
Safer and simpler than cash
Protects debit and credit accounts
Marketing
Target companies needing to simplify per diem and expense reporting
Promote worldwide acceptance of prepaid
Partner with local travel agencies
Print, billboard and radio advertising

6. Salary Cards Justification Marketing
Lower profit per card, but predictable monthly revenue stream
Market to existing corporate clients
Reduces employer expenses
Employee financial inclusion
Marketing
Target companies currently paying with cash or cheques
Promote the safety and cost reduction vs. handling cash
Present to industry groups in your country

7. Segmentation – Advanced Markets
For advanced prepaid markets, identify segments that expand the customer base and prepare customers for other banking products
Purchase habits require a card (online shopping, travel, etc.)
Potential for long-term banking relationship (debit/credit, home loans, business owners, etc.)

8. Gen Y Cards Justification Marketing
20-35 year-olds more likely to incorporate smartphones into their lifestyle
Frequent digital purchases (apps, music)
Desire for online shopping capability
More educated and affluent – future business and government leaders
Marketing
Develop banking programs that fit – not one-size-fits-all
Card and advertising should be exciting and innovative
Partner with online shopping sites

9. University ID Cards Justification Marketing
Low revenue, but predictable monthly revenue stream
Also includes a faculty salary/travel card
Provides their first banking experience
Establishes bank loyalty just as they’re entering the workforce
Marketing
Develop ongoing relationship with students (and parents) throughout university career
Advertise on campus to explain the value and functionality of their prepaid card
Provide a new card as they graduate to extend relationship

10. Virtual Cards Justification Marketing
Reach mass audience with low-KYC, low-velocity digital card
Small revenue per transaction, but high transaction count
Provides opportunity to upgrade to a physical card
Marketing
Digital-only experience provides opportunity for SMS, , and in-app advertising
Promote added versatility of a physical card
Use customer data to promote targeted banking products (home loans, etc.)

11. Government Disbursement Cards
Justification
Large civil service population in many countries
Low profit, but frequent usage and predictable revenue stream
Government jobs often transition to corporate positions
Incorporates aspects of ID cards, travel cards, and payroll cards
Marketing
Seek out large groups (military, pensions, etc.) where the card adds most value
Promote additional banking products that fit target audience

12. GTP Example
GTP has launched the Market Ready line of products to enable bank partners to reach target segments quickly, inexpensively, and successfully.

13. White-Label Travel Card
GTP assists the bank with card/carrier design, print and digital advertising, and strategies for a successful launch.

14. Summary
In summary, segmenting your customer base can help your bank identify profitable and untapped markets that increase card revenue, enhance bank loyalty, and drive demand for other banking products.
Questions?