Poste Italiane Solution

PANEL/SESSION 4

DEVELOPMENT STRATEGY WITH PARTNERS: NEW SERVICES AND PRODUCTS

STRATEGIE DE DEVELOPPEMENT AVEC LES PARTENAIRES: NOUVEAUX SERVICES ET PRODUITS

Ms Luzineth MESQUITA Head of Finances and Postal Bank Department Empresa Brasileira de Correios o Telégrafos (Brazil) 2014 UPU Postal Financial Services Forum

Development strategy with partners: New Services and Products Postal Bank coverage

6.193 Service Points REGIÃO NORTE 519 Agências 8% REGIÃO NORDESTE 1.811 Agências 29% REGIÃO CENTRO- 2.361 OESTE Municipalities not previously served 1.156 Agências by agencies BB 19% REGIÃO SUDESTE 2.066 Agências 34%

REGIÃO SUL 611 Agências 75 mil 10% Service Points BB e Postal Bank The Portfolio • Accounts • Loans • Withdrawals • Credit cards • Deposits •Bill/invoice/taxes payments •Account balances and statements • Social benefits •Remittances

Opened Accounts Credit Cards Loans 2.7 Million 1,7 Million 244 Thousand New Modern and Innovative Services ROLES MobileInternational Virtual Network Organization Operator Government Technical assistance and financing of projects Regulations IntegrationElectronics of efforts Postal and action’s Services convergence Ensure reliable service Provide Consultancy Policy of Financial Inclusion Acting on lobbying government bodies Vigilance and monitoring Discussion Forum Consumer protection rules Spread of best practices Legal Securty Standardize technology and formal Instruments Sponsorship, Pre-paid Subsidy card Consortium Insurances Post Office Partner Mobile Payment Corporate sustainability Know How Universalize the services and expand the Competencies Infrastructure (network, people, techinical) Range of products and services Cooperative business model Convergence of objectives Quality and efficiency Supervision and Control Integration and social inclusion Risk Management Instrument Expansion of of Government Remittances Actions - IFS The UPU should assist countries in modernizing their postal financial services, adapting to such regulations and their postal platform for electronic payments (IFS), which should be able to interact with other providers of electronic services in new technologies, as well as having a body for management by its members, all the business of the postal payment network and operational issues related.

Luzineth de Lima Mesquita [email protected] www.correios.com.br Mr Walter PINCI Head of Payment Systems in BancoPosta and Board Member of MasterCard Poste Italiane 10

Innovative Payment Systems Development strategy with partners: New Service and Products

Walter Pinci – Head of Payment Systems

March 2014

31/03/2014

Drive the innovation 11

1 To deliver to the Poste Italiane customer base a SIM NFC NFC-enabled only, with payment functionalities and VAS embedded Drive the innovation 2 To launch new, bundled and light acquiring leveraging on MPOS services leveraging on Mobile solution and VAS internal assets for merchant and key selected

3 To launch a new cash-to-wallet remittance partnerships e-Money services leveraging on Mobile widespread in the most relevant money transfer corridors from Italy

31/03/2014 12 1 NFC – Poste Italiane solution

PAYMENT BancoPosta Cards

TRANSPORTATION Applet Calyspso & Myfair

LOYALTY TSM

CORPORATE VAS

Super App SIM

The SIM is preloaded with 4 card profiles ready to use once linked with a phisical card and with other Value Added Services embedded in the App (to update “over the air”)

31/03/2014 13 2 MPOS - Background

Background Gross Euro Merchant with Volume POS 90% of Italian payment business Merchant EUR 5m without POS Top Merchants is with cash

 High penetration on Top/ EUR 50k-5m Medium Medium merchants (90%) Merchants  Very low penetration on Small/ Micro merchants EUR 10-50k (<10%) Small Merchants  About 1mln Micro merchant without acquiring services, resulting more than EUR 0-10k Micro 10Bln €* of Merchants incremental GEV

(*) Source: Euromonitor, European Central Bank 31/03/2014 14 2 MPOS – The partnership

. Using a mobile device as a POS terminal, replacing traditional card machines: – Smartphone/ Tablet + – MPOS + – App

. The new Poste Italiane offer: – Bank account (for SMEs) – Card reader – Acquiring service

The partnership is built on the relevant Poste Italiane customer base, the innovative positioning on mobile and the easy to use solution delivered by Payleven

31/03/2014 15 3 e-Money – Cash to Mobile Wallet – How it works

The partnership  6,8 Bln Mobile in the world

 Mobile Wallet platforms handle e- SENDER SIDE money

 In Kenya, for example, mobile financial

transactions represent a significant part of the country’s GDP TRANSFER SIDE

 On some corridors, a significant part of remittances has been towards RECEIVER SIDE Mobile Wallets wallet  Transfers by migrants @ 39 Bln euro in Ericsson

Europe, Italy @ 6,8 Bln euro

31/03/2014 16 3 e-Money – Cash to Mobile Wallet – How it works

e-money wallet Ericsson

Interconnect beneficiary’s sender wallet

− The sender pays cash in − The transfer between Poste − Ericsson tops-up its wallet Euro, the receives the Italiane and the Wallet by having funds transferred equivalent e-money in local platform is through Eurogiro to the Wallet platform trust currency and the Interconnect account service

The service will allow users to pay cash over the counter in any Post Office and will have the equivalent e-money credited to a beneficiary’s mobile wallet in another country by the next common banking day between the two countries

31/03/2014 Mr Zouheir ELLOUMI Directeur central Poste Finance and POC Committee 5 “Products and Services Development” Group Chairman La Poste Tunisienne Zouheir Elloumi Directeur Central des Produits Financiers Mail: [email protected] Mohamed Zouhaier BASLY,

Président de la Poste Tunisienne

[email protected]

Tunis, 28 Mars 2011 Berne, 28 mars 2014 LA POSTE TUNISIENNE : LES INDICATEURS CLES

• Réseau moderne, étendu et de proximité : 1046 Points de vente  Taux de couverture : 42,8% . 7657 habitants / agence sans compter le réseau postal . 4381 habitants / agence avec le réseau postal  42% des bureaux dans les zones rurales  76% des bureaux informatisés  46 Postes ambulantes

• Un parc de 177 DAB soit 9,3% du nombre des DAB en Tunisie

• 32 Espaces Poste Finance installés au niveau des bureaux pour vendre les produits financiers à forte valeur ajoutée

• Clientèle de la Poste:  Nombre de clients permanents: 6,4 Millions de clients dont 400 000 porteurs de cartes prépayées  800 Mille clients servis par jour soit 7% de la population

• Population tunisienne: 10 000 000 d’habitants

• Nombres de lignes téléphoniques mobile (carte-SIM): 13 000 000

DÉVELOPPEMENT DES PARTENARIATS: LES OBJECTIFS POUR LA POSTE TUNISIENNE DÉVELOPPEMENT DES PARTENARIATS: LES PREREQUIS POUR LES SERVICES VIA MOBILE

• Appui des pouvoirs publics à l’utilisation des nouvelles TIC et au développement des transactions numériques multicanales

• Assistance et encouragement des relations de partenariat par les pouvoirs publiques

• Mise en place du cadre réglementaire pour le développement des opérations financières sur internet et via mobile

• Mise en place des moyens nécessaires pour garantir la pérennité des offres (technique, sécurité, assistance et support, formation…).

DÉVELOPPEMENT DES PARTENARIATS: LA SOLUTION DE LA POSTE TUNISIENNE POUR LES SERVICES FINANCIERS VIA MOBILE

 Mise en place d’une plateforme portant une gamme de services diversifiés M-Payement.

 Ouverture des services M-Payement à tous les opérateurs de téléphonie mobile chacun selon ses besoins.

 Etablissement de relations contractuelles gagnant – gagnant: innovation et développement des produits et partage des commissions suivant l’apport technologique de chacun.

 Une solution basée sur une technologie simple (USSD) accessible à partir de n’importe quel type de téléphone mobile pour une couverture totale du marché et pour atteindre toutes les catégories de clients (étudiants, retraités, …).

 Une solution évolutive et dynamique qui permet l’ajout d’autres services financiers (Micro Paiement, Micro Finance, …) et d’autres moyens de paiement (carte de paiement liée au compte courant postal et bancaire).

DÉVELOPPEMENT DES PARTENARIATS: RESULTATS EN CHIFFRES

Chiffres clés: 2013 • Plus de 400 000 clients porteurs de cartes prépayées • Plus de 278 000 utilisateurs actifs • Nombre moyen de nouveaux utilisateurs par jour: 700 • Nombre moyen de transactions par jour: 8000 • 1 690 000 Opérations de recharge téléphonique • 93 600 Opérations de virement • 15 130 000 consultations de solde • 40 000 encaissements mandats bourses • 4 000 encaissements mandat minute • 2 000 encaissements mandat Western Union (démarrage août 2013) • Les opérations via Mobile sont réalisées avec deux opérateurs, le troisième sera opérationnel à partir du mois d’Avril 2014

DÉVELOPPEMENT DES PARTENARIATS: RESULTATS EN CHIFFRES

Evolution des activités financières 1999/2013

Répartition du chiffre d'affaires en 1999 Répartition du chiffre d'affaires en 2013

40% 60% 70% 30% Services postaux Services financiers Services postaux

Services financiers DÉVELOPPEMENT DES PARTENARIATS: QU’ATTENDENT LES POSTES DE L’UPU

 Multiplier les rencontres avec la communauté postale (forums, conférence, etc.) .

 Prévoir des actions sur le terrain associant les partenaires nationaux ou internationaux pour le développement des services via mobile.

 Etudier le développent des services financiers via Mobile dans le cadre des groupes de travail concernés. Merci

Berne, 28 mars 2014 26 Mr Christopher CLARK Head, Partnerships and Resource Mobilization International Telecommunication Union (ITU) Empowering Post Offices to deliver e-services

Christopher Clark Head, Partnership and Resource Mobilization Division ITU

www.itu.int About ITU

29 Almost 150 years old Mandate to connect the world ITU is based in Geneva, Switzerland 193 Member States and 700 Sector Members and Associates. 760 staff, from 80 nationalities. Organized in three Sectors:  Radiocommunication (ITU-R)  Standardization (ITU-T)  Development (ITU-D)

2 9 ITU’s Global Presence

5 regional offices, 8 area offices

3 0 Postal Sector: Challenge/Opportunity 31  Letter traffic down, but electronic opportunities  Government to person payments  Social benefits  Person to government payments  Taxes, fees, licenses  Consumer services: Mobile money, remittances  E-commerce  Track and trace 3 1 Connectivity for New Services 32

 Need reliable, secure, affordable connectivity to deliver new services  Without this, cannot compete. Cannot deliver new services.  Major challenge in rural communities  Industry partnerships for new tech, but:  How/when should the Post approach industry partners?  Negotiate from a position of strength  Maintain strategic role

3 2 ITU-UPU Collaboration: National Projects

 Have done projects to connect rural post offices  Challenge: cost of connectivity, access to energy. Not scalable/sustainable.  New business model:  Transactions to cover connectivity/electricity  Goal: Empower the Post = “Post as the Platform”  Avoid closed, propriety solutions with single big player (telecom, bank)  Instead: Interoperability between m-wallets plus coms hub for all mobile operators to extend services to the community.

3 ITU-UPU Collaboration: International

34 Standards

 Innovation in mobile money - many new services  But closed, proprietary systems that do not interact  ITU & UPU working on international standards – interoperable for all players  Goal: ITU & UPU provide a neutral platform for the various players

3 4 Thank You

www.itu.int Mr Sergey NANBA Coordinator, Postal Financial Services Universal Postal Union (UPU) Postal Payment Services based on: • UPU worldwide electronic postal payment network (WEPPN) • New state-of-the art technologies (IFS) • Intergovernmental treaty and publications: − the Postal Payment Services Agreement and its Regulations − e-Compendium, Operational Guide, e-Inquiry system, etc. − Multilateral agreement − Quality of service standards − Collective trademark

• Widespread network in countries for the benefit of all citizens in particular in rural areas • Good knowledge of customers and their needs • Perceived by customers as secure and efficient • Affordable high quality and secure products

© UPU 2013 – All rights reserved UPU worldwide electronic postal payment network • Secure, reliable and available to all UPU members. • International and domestic electronic postal payment services: − Urgent or normal payments • Interoperable with other networks (IFS – Eurogiro) • Four types of payment modes: − cash to cash − cash to account − account to cash − account to account • E-Commerce & COD (Cash–On-Delivery) • Automated clearing and settlement system • Full Track and Trace of payments (QCS)

Algeria Dominican Republic Morocco Armenia Ecuador New Caledonia – France Australia Egypt Niger Azerbaijan Estonia Peru Belarus France Portugal Benin French Polynesia Qatar Botswana Gabon Russian Federation Bangladesh Gambia Rwanda Burkina Faso India Senegal Burundi Indonesia Spain Cambodia Jordan Tajikistan Cameroon Kazakhstan Tanzania Chad Kenya Togo Chile Kyrgyzstan Tunisia China Laos Uganda Colombia Lithuania Ukraine Comoros Madagascar United Arab Emirates Congo Malaysia United Arab Emirates (IC) Congo (Republic) Mali Uruguay Côte d'Ivoire (Republic) Mauritania Uzbekistan Cuba Mauritius Vietnam Djibouti Moldova Zimbabwe

• Develop the UPU WEPPN as an universal integration platform • Interconnection with different services providers on global, regional and domestic levels • Offer financial products and services in a Non- Exclusivity environment and promote financial inclusion of rural and underserved populations • Provide connectivity to all places: post offices, postmen and customers • Extending IFS functionalities • Enable the customer to choose the financial services access point: post office, bank, MTO, MNO, etc.

Access to all services of postal partners: • Accounts • Loans • Insurances • Bill payments, • Government and social payments

E-Commerce solution

• Update the Postal Payment Services Agreement and its Regulations • Create a new Framework and select new partners: services providers and international organizations • Adapt the existing postal technological platform: create IFS Hub • Assist services providers in development of partnerships • Extend worldwide the UPU clearing and settlement system