1. Mobile Money Technology Solutions Nicola D’Elia, mApps and Innovation Manager October 2010, Kuala Lumpur

2. Agenda 1. Background 2. Market Overview 3. 7Key Learnings 4. Vendor Selection Criteria 5. Analytic Hierarchy Process 6. Conclusions

3. Market overview 84 Live Deployments as of 01.09.2010 vv 87 Planned Deployments Planned Live Geographic Distribution # Deployments per Vendor Live Planned

4. 7 key learnings 4. Look for vendors with live deployments and local expertise Ensure your vendor’s success is tied to your own 5. 1. Technology and Security are essential, but there is more... 6. Build a strong relation with your vendor 2. Engage with Vendors while you are Defining your Business Strategy 7. Data, Data, Data... 3. Be realistic with your time-to-market expectations

5. Technology and Security are essential Before 60% of mobile operators included technology and security as top selection criteria After 30% Solution Security But there is more... Supported Transactions Transaction and Application Supported bearer channels User authentication/registration PCI Compliance Service authentication Transactional Integrity Hardware Security, Operating System and Database Hardening Scalability and transaction volume Performance / High Availability Operations and Maintenance Security Fraud detection and management

7. Process Mapping & Re-engineering

8. Requirements Analysis

9. Conduct research

10. Shortlist vendors

11. Define selection criteria

12. Apply multi-criteria decision framework

13. Negotiations

14. References checks

15. Allocate resources

16. Ensure appropriate support

17. Operational Support

18. Platform refinement

19. Reporting

20. Plan for platform upgradesDesign effective RFP Visit live deployments in similar markets Conduct workshop with vendors

21. Be realistic with your time-to-market expectations Set Strategic Context Vendor Selection Contract Negotiation Implementation Pilot Roll-out 2M 2M 3M 5M 6M 10M Expected time-to-market 12M >>16M Reality The average time from vendor selection to full scale roll-out has been 16 months

22. Look for vendors with live deployments and local expertise Few vendors manage platforms with high volumes Local expertise and established relations with key partners

25. 50% active customers

27. Data, data, data... Customer engagement Customer/Agent balance Platform unavailability, New players in the market, change in pricing strategy, agent network Insufficient agent network planning, Customer engagement Identify the cause Aggregate volumes and values Customer base Number of transactions Number of customers Customer engagement Agent engagement Customer/Agent ratio Transactions patterns Data

29. Technical architecture & IF requirements

30. Scalability and transaction volumes

31. Interoperability

32. Security standards

33. Performances/High availability

34. Proven deployment and years of operations

35. References

36. Number of employees

37. Partnership feeling

38. Other (Ownership structure, capital investors)

39. Vendor financials

40. Costs (fixed, variable, additional feature)

41. Other costs

42. Legal terms

43. Risk sharing

44. Business model

45. Future roadmap

46. Time to market

47. Flexibility to new developments

48. Training and Support

49. Reporting

50. Easy of use

52. Technical architecture & IF requirements

53. Scalability and transaction volumes

54. Interoperability

55. Security standards

56. Performances/High availability

57. Other

58. Vendor financials

59. Costs (fixed, variable, additional feature)

60. Other costs

61. Legal terms

62. Risk sharing

63. Business model

64. Future roadmap

65. Time to market

66. Flexibility to new developments

67. Training and Support

68. Reporting

69. Easy of use

70. Other stakeholder engagement

71. Proven deployment and years of operations

72. References

73. Number of employees

74. Partnership feeling?

75. Other (Ownership structure, capital investors)Subfactors Alternatives Vendor 1 Vendor 2 Vendor 3

76. Analytic Hierarchy Process (AHP) Model the hierarchy Pairwise comparisons Evaluate the weight of the hierarchy elements Compute the priorities Technology Vendor overview Technology Finance Vendor overview Strategic Relevance Finance Vendor 1 Strategic Relevance Operations Operations Vendor 2

77. Analytic Hierarchy Process (AHP) Model the hierarchy Evaluate the weight of the hierarchy elements Compute the priorities Goal Select the best technology vendor Factors and Subfactors Vendor overview Technology Finance Strategic Relevance Operations .25 .20 .35 .10 .10 0.30 0.20 0.50 Alternatives Vendor 3 Vendor 1 Vendor 2

78. Are you happy with your technology provider? MNOs level of satisfaction with m-wallet providers Satisfied 3.6 3.5 3.4 3.4 3.3 3.3 Neutral 3 2.9 2.7 Dissatisfied Promoters Passive/Detractors 0 1 2 3 4 5 6 7 8 9 10 Not at all likely Neutral Extremely likely How likely are you to reccomend to a colleague or friend? 64% 36% System flexibility Client engangement model Responsiveness to service development requests Reporting tools and customer support Local capabilities Product documentation Business process support Price What to improve Approximately one operator out of three is satisfied with their vendor

79. Our journey so far... 1. Create a strong business partnership MNO and vendor need to believe in the success of the platform 2. Learn together Leverage the expertise of your vendor and be thorough 3. Listen to your client The operator’s success is your success

80. Q&A

81. Q&A Unanswered questions? Send them to: e-mail mmu@gsm.org SMS +60123211275 (include your name) or