This presentation was given by mPay Connect at Columbia University for the summit on "Macroeconomics of Mobile Money" by the Columbia Institute for Tele-Information on April 2, 2010. Special thank you to contributors to the discussion on the LinkedIn Group: Mobile Payments Series - mPay Connect.

1. mPay Connect Consulting
Mobile Money:
the catalyst to jumpstart emerging markets
Special “Thank You” to contributors from LinkedIn Group:
Mobile Payments Series – mPay Connect
Menekse Gencer
Mail: mgencer@mpayconnect.com
Skype: meneks80 April 2, 2010
Company: www.mpayconnect.com

2. agenda
1. background
2. what will be mobile money’s impact GDP?
3. why will it have this impact?
4. recap
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3. background
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4. mobile money = mobile + digital cash
Using the mobile phone as a channel
to conduct financial services
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5. from paypal to the masai
mobile money for the unbanked
+ =
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6. what will be the impact?
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7. mobile money will lead to increases in GDP
in emerging markets
Future GDP Cartogram
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8. GDP grows when Mobile rises
Impact on GDP
1.5% of 10% increase of Mobile Subscribers
in Emerging Markets
Increase in GDP
1.2%
1.0%
0.6%
0.5%
0%
Average India
Columbia University
Emerging Market
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April 2, 2010 Source: Vodafone, World Bank

9. Kenya’s mPesa Example
9 million users, >$300 million/month
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10. why?
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11. mobile money stimulates levers of GDP
GDP = Consumption + Investment + Government Spending + Net Exports
New Infrastructure,
More Education
More businesses,
Greater Investment More net exports
& Gov’t Spending
New Jobs & Income
Increases in
Consumption,
Savings, Taxes
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12. why?
mobile money = 4 forces at work
Mobile Electronic
= =
Data Efficiencies
Ubiquity
Infrastructure Capital
= =
Foundation
Catalyst
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13. Mobile
first ubiquitous 2-way data transmission device
Mobile Subs
$5+ Billion
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14. Mobile
reaches those currently with
no access to financial services dependent on cash
World Economic Pyramid
Banks
500 Mill
*>$20k/yr
Unbanked,
2 Billion Mobile
*$3260 to $20k/yr
Opportunity:
1.7 Billion in
Today 2012
4 Billion 2012 Source: CGAP
*<$3260/yr or <$9/day
Source: World Resources Institute
(*Individual Annual Income: 2005 USD Purchasing Power Parity)
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15. Electronic remote transmission replaces
human transport time for cash
eliminate “shoe leather costs”
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16. Electronic
less friction than cash
enables ability to transact more often
smoothing transaction =
money received at time of need
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17. Nature of
Electronic
digitization and ability to track=
less “leakage” and crime, more tax revenue
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18. Infra-
structure
mobile payments =
enabler of new industries
mHealth, off-grid energy, trading
Mobile Payments
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19. Infra-
structure
building blocks =
enabler of new services
Marketing
Mobile Payments
Identity
Management
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20. Infra-
structure
new industry & innovations spur
investment = new jobs
over 140+ mobile payments initiatives
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21. Capital formalizing capital
increase in savings, credit
informal to formal financial services
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22. mobile money = catalyst to GDP growth in emerging markets
GDP = Consumption + Investment + Government Spending + Net Exports
New Businesses &
Net Exports
Greater Investment
New Jobs & Income
& Gov’t Spending
Increases in
Consumption,
Savings, Taxes
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23. challenges
1. Lack of other infrastructure
2. Government & regulatory policies
3. Lacking capital markets
4. Fragmented / Lack of interoperability
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24. Questions?
Menekse Gencer
mPay Connect Consulting
• Wharton MBA ‘98, Harvard BA Economics ’93
For more information
mgencer@mpayconnect.com
www.mpayconnect.com
www.twitter.com/mpayconnect
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