A presentation at Mobile Money World conference in Johannesburg; looks at it from point of view of what the user is expected to sacrifice. Also examines success factors behind Mpesa in Kenya that do not apply elsewhere.

1. The real challenge
in mobile payments
By Arthur Goldstuck (Twitter: @art2gee)
Mobile Money World, 14 March 2012

2. Mobile money
comes in many
shapes

3. Mpesa
PayD
eWallet
Eyenza
PayWizard
ISPCASH
Celpay
etc …

4. Africa
-­‐
Economy

5. But so does
money itself

6. Money Market - Shoprite
CashSend - ATM
Instant Money - Spar
Mzansi Money Transfer - PO

7. Does the
cellphone
change money?

8. Data starting to cannabilise SMS
3% 2%
5% 8%
16% 12%
Content/music
76% 77%
Data / Internet access
SMS/MMS
Voice calls
2009 2010
Data as a percentage of total mobile spend has grown from 5%-8% in 2010.
16-18 yr almost doubled, but massive increases seen in 35+ age groups.

9. Current vs. future brand usage
(NB: Intentions , not actions)
n=1203
Current usage % Future usage % Brand Momentum
(main phone) (future / current)
Nokia 51 48 (U=45, R=52) 0.95
Samsung 28 12 (U=10, R=14) 0.42
LG 5 2 0.37
Blackberry 4 24 (U=29, R=20) 6.10
Motorola 4 1 0.37
Sony-Ericsson 2 3 1.31
HTC 1 2 1.96
iPhone (Apple) 1 3 (U=5, R=1) 4.74
Other 5 5 0.97
“Mobile Consumer in SA 2011”, World Wide Worx

10. How much the
low-income SA
user spends on
phone per day:

11. Africa
-­‐
Economy

12. And every
four days:

14. Equivalent to …

16. In one month,
this is how much
bread these
phone calls cost:

18. This is what you
want them to
give up for each
mobile payment:

20. This is what they
can afford:

22. The Golden Rule:
Disposable income
is not expandable
To increase
disposable income,
you must increase
income.

23. The Payments revolution
It is not a global phenomenon.
Local dynamics are critical.

24. The great Mpesa gap
12 success factors in Kenya not present in SA

25. 1. High unbanked population
2. Regulatory openess
3. Dominant telco at launch
4. Population dispersal
5. Culture of remittances
6. Low cost of use
7. Bank agnostic
8. Swahili brand name
9. No paperwork
10. Quick, easy registration
11. Extensive network of outlets
12. Serving wananchi (ordinary folk)

26. And then came NFC
…and the mobile industry
is suddenly Captain Picard

27. Captain Picard
said:
“Make it so.”

28. But mobile industry
can’t simply
decree a global
payment system.

29. One model does
not fit all markets.

30. The killer app in
mobile money:
Homework

31. Thank you
Arthur Goldstuck
(011) 7827003
arthur@worldwideworx.com
www.worldwideworx.com
Twitter: art2gee