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2. Leveraging APIs to drive mMoney innovation
-- Expanding services beyond P2P
-- Africacom, November 2013
Copyright © 2013 mahindra mahindra comviva Technologies Limited. All rights reserved.
1

3. Contents
Growth profile - Mobile money services
Problems with current systems
Accelerating growth with money APIs
Tips for take-off
Source: Operator, Mahindra Comviva
2

4. Growth Profile – Mobile Money Services
400
310
Million
300
254
254
200
74
100
0
2011
2012
2013 (JAN-MAY)
Transaction Volume (million)
Transaction
volume
Cash-in
0.1% 7.9%
15.0%
0.4%
0.3%
14.4%
0.7%
Cash-out
0.2%
21.4%
0.3%
19.0%
Utility Payments
24.8%
Airtime top-up
50.8%
41.5%
19.2%
41.9%
21.0%
Merchant Payments
14.1%
2%
2.5%
2.7%
P2P Transfers
Bulk Payments
Recharge and P2P are dominating
3

5. Service expansion limited by current systems
--- Need to move away from a do everything mobile money system
 Accept mobile money as a payment
instrument
 Accept mobile money as a payment
instrument
 Accept EMI for payments >USD 1,000
 mMoney platform needs to interface with
merchant’s till and billing infrastructure for
processing payments
 Allow customers to post credit requests
and receive funds from social network
towards payment
 Directly debit customer’s mobile money
account

Merchants have custom business requirements creating significant IT overheads
and escalations in costs and complexity

Average industry merchant on-boarding time - 4-6 weeks depending on complexity
of integration

Multiply time to market with the number of partnerships needed to embed digital
payment instruments into consumers’ lives
4

6. Levers to displace cash
More
Transactions
Financial
Inclusion
Acceptance
Growth
More
Merchants
Product
Penetration
More
Consumers
Small Ticket
Transactions
More
Volume
• The cost of cash is high
• Approximate 1.5% of the country’s GDP
5

7. Transaction volumes dependent on number of
acceptance points
Direct correlation between transaction volumes and acceptance points
Comparative analysis of transaction
volumes and acceptance points
Number of merchants
(Oct 2013)
M-Pesa, Kenya
(Jul 2013)
Zaad, Somaliland
(Apr 2013)
Airtel Money, India
(Feb 2012)
90
85,000
80
Tigo Pesa,
Tanzania
70
60,000
(Plan to reach 100,000
by Apr 2014)
8,600
7,000
Merchants (‘000)
Tigo Pesa, Tanzania
60
M-Pesa,
Kenya
50
40
30
Airtel Money,
India
20
10
Orange Money,
Madagascar (Nov 2012)
3,000
Zaad,
Somaliland
Orange Money,
Madagascar
-
20
40
60
80
Monthly transactions (million)
6

8. Levers to displace cash
More
Transactions
Financial
Inclusion
Acceptance
Growth
More
Merchants
Product
Penetration
More
Consumers
Small Ticket
Transactions
More
Volume
• The cost of cash is high
• Approximate 1.5% of the country’s GDP
7

9. Expanding services using APIs
— APIs are application programmable interface that allows outside systems to interface with existing platform
Provides more time to
innovators and entrepreneurs
Developers can
drive transactions
Provides opportunity to sell
more by bringing purchase into
the app itself
Makes products part of
customer conversations
API wealth
Helps to reach the long tail
Citizen developers
Professional developers
Hobbyists
App stores
Helps to get into the app store
so more people can find us!
8

10. APIs - path to new business opportunities
— Provide customers with the ability to innovate based on the functionality they want to use
Business models are evolving...
...and growth is accelerating dramatically
Stores
Number of banking apps (worldwide)
(800)###
100000
75000
50000
25000
0
2013
2014
2015
By 2015, 25% of banks in the Global 1,000
will have launched their own app store
Source: Gartner 2013
2016
Websites
Web APIs
Number on new Financial Services APIs launched (worldwide)
200
180
160
140
120
100
80
60
40
20
0
2005
2006
2007
2008
2009
2010
2011
2012
By 2015, 50% of banks in the Global 1,000
will have launched an API platform
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11. APIs - path to new business opportunities
— Provide customers with the ability to innovate based on the functionality they want to use
13 billion API calls / day
(May 2011)
1.4 billion API calls / day
(May 2012)
5 billion API calls / day
(April 2010)
You
Tweet?
You
Facebook?
You
Check-in?
1 billion API calls / day
(May 2012)
1 billion API calls / day
(Q1 2012)
Consumption of APIs
is growing — FAST!
You
Post?
5 billion API calls / day
(October 2009)
You
“Candy Crush”?
1.1 billion API calls / day
(April 2011)
1 billion API calls / day
(January 2012)

Source: Gartner 2013
Consumption of APIs is growing fast
10

12. Use case 1: Online purchase using mobile money
API used
Account debit
Illustrative
Customer
1  Browses an ecommerce portal
 Selects item(s) to
purchase
 Portal displays
options to purchase
 Selects mMoney to
pay
Merchant e-commerce portal
2
4
 Portal redirects to
mMoney system to
authenticate customer
 Displays payment
confirmation post
successful
authentication
mMoney system
3  Customer
authentication is done
 Debits customer’s
wallet and credits
merchants’ wallet
 Redirects to portal
11

13. Use Case 2: Credit Disburse to customers
API used
Account credit
Illustrative
Micro-credit organization
1  SACCO* agent
(disbursement
officer) logs into the
portal
mMoney system
2
 Receives instruction with
customer details
Customer
3  Receives credit in the
wallet
 Identifies the respective
customer’s mMoney
wallet to be credited
 Selects loan
disbursement option
 Credits customer’s wallet
4
*SACCO - Savings and Credit Cooperative Organization
 Sends confirmation to
admin’s portal
12

14. Use Case 3: Online purchase using merchant app
API used
Account debit
Illustrative
Customer
mMoney system
IVR
1  Logs into the shopping mobile app of
a merchant
 Selects merchant and item(s) to
purchase
 Selects mMoney to pay
 App sends request to mMoney system
for customer authentication
3
 App displays confirmation of purchase
post successful authentication
2
 Authenticates customer using IVR
(this is required because app is from
3rd party)
 mMoney system debits customer’s
wallet and credits merchant’s wallet
 Sends payment confirmation
response to the app
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15. The evolution of APIs
Public APIs
The Power of Many
• PayPal
• Google Wallet
• UIDAI India
Partner APIs
Personalization, Acceptance
• Merchants
• Agent Network
• Value Added Services
Internal APIs
Platform Extensions
• Administration
• Reporting
• Service flexibility
14

16. Executing Public API Strategy
What It Takes
Governance
Monetization
Risk, Security, Fraud Control
Certification
Developer Portal
15

17. Open APIs shift control from financial service providers
to consumers
2014 and beyond: User control
Present: Financial institute control
Value network
enablement
Product
Manufacturing
New Services
Technology
Distribution
Financial
institutions
Distribution
Risk and
regulation
Branding
Branding
Pricing
16

18. Mahindra Comviva has a 38% share of the
MNO-led financial services market in Africa
mobiquityTM mMoney footprint
 Powers financial services for 31 MNOs in
26 African countries
Morocco
Egypt
Mauritania
 Addresses131 million customers or 12%
of Africa’s population
 Processed 310 million transactions in
2012
Senegal
Guinea B
Guinea C
Sierra
Leone
Cote
d'Ivoire
Mali
Niger
Nigeria
Ghana
Cameroon
Burkina
Gabon
Faso
Central African
Republic
Somalia
Chad
Uganda
Kenya
Rwanda
DRC
Tanzania
Congo B
Seychelles
Malawi
Zambia
Zimbabwe
Madagascar
 Handled transactions worth US$ 4.8
billion in 2012
Source: GSMA, Mahindra Comviva research, Wireless
Intelligence Q1 2013, Africa’s population (Q1 2013): 1,090 million
Botswana
Lesotho
Live
deployments:
Airtel
France
Telecom
Maroc
Telecom
Planned
deployments:
Airtel
France
Telecom
Maroc
Telecom
Tigo
Vodafone
Econet
Telecel
NationLink
Somtel
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19. Thank you
Visit us at Stand C08
Disclaimer
Copyright © 2013: mahindra mahindra comviva Technologies Ltd, Registered Office at A-26, Info City, Sector 34, Gurgaon-122001, Haryana, India.
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Copyright © 2013 mahindra mahindra comviva Technologies Limited. All rights reserved.
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20. Ensure “ease of use"
Best practices
Don't build the wrong kind of supply
 Elegance
 Simple
High
 Not too much system focus
 Flexibility
Business value
 Design not restricted to
programmer only
Managed
Services
 Security/support
 Marketing
Software
Modules
 Awareness
 Value
 Breadth of use
 UX
 Ease of use
Low
Low
System complexity
High
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21. Action plan for service providers
 Treat your public Web API program as a key component of
your organization's business and go-to-market strategies.
 Minimize risk by starting with inwardly focused Web APIs for
mobile enablement and internal innovation, and then expand
the strategic role of Web APIs incrementally as you gain
experience.
 Establish a cross-functional team appropriate for the maturity
level of your Web API program.
 Establish clear program goals with quantifiable metrics that
can be tied back to business value.
 Consider and address the governance and resource
requirements before releasing your Web API outside your
company
 Don't assume "if we build it, they will come." Support is just
as important as design principles.
 To get started building great open APIs, start by using some
great open APIs, like those of Twilio, Amazon, and Facebook
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