English/ Database/Download.Html); Data Are As of August 2010
Total Page:16
File Type:pdf, Size:1020Kb
IFC ADVISORY SERVICES | ACCESS TO FINANCE Public Disclosure Authorized IFC Mobile Money Study 2011 SUMMARY REPORT Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized In Partnership with the Republic of Korea IFC ADVISORY SERVICES | ACCESS TO FINANCE IFC Mobile Money Study 2011 SUMMARY REPORT In Partnership with the Republic of Korea International Finance Corporation 2011. All rights reserved. 2121 Pennsylvania Avenue, N.W. Washington, DC 20433 Internet: www.ifc.org The material in this work is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. IFC encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly, and when the reproduction is for educational and non-commercial purposes, without a fee, subject to such attributions and notices as we may reasonably require. IFC does not guarantee the accuracy, reliability or completeness of the content included in this work, or for the conclusions or judgments described herein, and accepts no responsibility or liability for any omissions or errors (including, without limitation, typographical errors and technical errors) in the content whatsoever or for reliance thereon. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. The findings, interpretations, and conclusions expressed in this volume do not necessarily reflect the views of the Executive Directors of The World Bank or the govern- ments they represent. The contents of this work are intended for general informational purposes only and are not intended to con- stitute legal, securities, or investment advice, an opinion regarding the appropriateness of any investment, or a solicitation of any type. IFC or its affiliates may have an investment in, provide other advice or services to, or otherwise have a financial interest in, certain of the companies and parties (including named herein. All other queries on rights and licenses, including subsidiary rights, should be addressed to IFC’s Corporate Relations Department, 2121 Pennsylvania Avenue, N.W., Washington, D.C. 20433. International Finance Corporation is an international organization established by Articles of Agreement among its member countries, and a member of the World Bank Group. All names, logos and trademarks are the property of IFC and you may not use any of such materials for any purpose without the express written consent of IFC. Additionally, “International Finance Corporation” and “IFC” are registered trademarks of IFC and are protected under international law. Contents Foreword ..................................................... v 4. Business Model Analysis ........................72 Acknowledgments .................................... vii Elements of Business Models ...............................72 Abbreviations ............................................. ix Competitive Strategy ..........................................74 Business Models in Survey Countries ..................76 Executive Summary .....................................1 Proposed Evolutionary Business Model ...............82 Defining Mobile Money ........................................2 5. Mobile Money Demand Curves ............84 Value Proposition of Mobile Money ......................2 MNO-Centric Model Provides Alternative Finan- Insights from Kenya, Japan, and the United States 3 cial Infrastructure ...........................................85 Major Money Flow Estimates ...............................5 Transition Phase Brings More Offerings ..............87 Parameter Analysis ................................................6 Seamless Integration and Collaboration Phase .....88 Survey Findings .....................................................6 Opportunity Analysis ............................................7 Appendixes Business Models ....................................................8 A. Methodology ..................................................89 Hypothesis of Progressive Development ................8 B. Demand Estimates ..........................................92 Conclusion: Mobile Money Demand Curves ......10 References ...............................................106 1. Introduction ...........................................13 Study Context and Focus ...................................13 Box Understanding Electronic Money and Mobile 4.1 Update on New MNO-Bank Partnership ..79 Money ...........................................................14 Positioning of Mobile Money ..............................14 Figures Value Proposition of Mobile Money ....................15 ES.1 Hypothesis of Progressive Development of Structure of the Report ........................................16 MNO-Centric Model ..................................9 ES.2 Mobile Money Demand Curves .................11 2. Case Studies as Context: Kenya, 2.1 Kenya: Number of Current and Projected the United States, and Japan ...................17 M-PESA Subscribers ..................................17 Kenya .................................................................17 2.2 Kenya: Impact of Mobile Money on United States .......................................................19 Safaricom ...................................................18 Japan ...................................................................21 2.3 Kenya: Subscriber Uses of M-PESA ...........18 Summary .............................................................25 2.4 Kenya: Potential Monthly Transactions in Key Mobile Money Market Segments ........19 3. Four-Country Analysis ...........................27 2.5 United States: Electronic Payments as a Share Demand Estimates .............................................27 of Monthly Volume of Total Payments .......20 Parameter Analysis ..............................................33 2.6 United States: Penetration of Various Surveys of Mobile Money Users and Nonusers and Electronic Payment Instruments, 2008 ......20 Agents ...........................................................38 2.7 United States: Growth in Number of Opportunity Analysis ..........................................61 Payment Instruments per Consumer ..........20 i ii IFC Mobile Money Study 2011: Summary Report 2.8 United States: Mobile Market Shares by 3.25 Percentage of Respondents Rating Their Operator ....................................................21 Ability to Use Various Devices as High or 2.9 United States: Potential Monthly Highest ......................................................51 Transactions in Key Mobile Money 3.26 Thailand: Familiarity with Mobile Market Segments .......................................21 Phone Capabilities .....................................51 2.10 Japan: Market Share of Mobile Service 3.27 Brazil: Nonuser Unfamiliarity with Providers ....................................................22 Mobile Phone Capabilities .........................51 2.11 Japan: Shares of Types of Consumer 3.28 Percentage of Nonusers Who Have Payments, 2008 .........................................24 Heard of Mobile Banking ..........................51 2.12 Japan: Direction of Service Evolution ........24 3.29 Brazil: Source of Information on Mobile 2.13 Japan: Potential Monthly Transactions in Banking Services ........................................52 Key Mobile Money Market Segments ........25 3.30 Nigeria, Sri Lanka, and Thailand: Source 3.1 Brazil: Potential Monthly Transactions in of Information on Mobile Banking Key Mobile Money Market Segments ........28 Services ......................................................52 3.2 Nigeria: Potential Monthly Transactions in 3.31 Sri Lanka: Preferred Method to Learn Key Mobile Money Market Segments ........30 about Mobile Money .................................53 3.3 Sri Lanka: Potential Monthly Transactions 3.32 Cash Withdrawal Sources Used Most in Key Mobile Money Market Segments ....31 Frequently by Users and Nonusers .............54 3.4 Thailand: Potential Monthly Transactions 3.33 Sri Lanka: Frequency with Which in Key Mobile Money Market Segments ....32 Nonusers Withdraw Money .......................54 3.5 The Four Country Mobile Money 3.34 Nigeria: Frequency with Which Users Markets in the Porteous Regulatory and Nonusers Withdraw Money ................54 3.35 Most Convenient Time of Day to Environment Model ..................................35 Withdraw Money ......................................55 3.6 Brazil: Socioeconomic Characteristics of 3.36 Typical Methods of Money Transfer ...........55 Mobile Money Users and Nonusers ...........40 3.37 Brazil: Typical Methods of Money 3.7 Nigeria: Types of Bank Accounts Held .......41 Transfer .....................................................56 3.8 Nigeria: Socioeconomic Characteristics of 3.38 Thailand: Knowledge of Cost Differences Mobile Money Users and Nonusers ...........42 for Different Methods of Money Transfer .... 56 3.9 Sri Lanka: Types of Bank Accounts Held ...43 3.39 Fund Transfer Destinations ........................56 3.10 Sri Lanka: Mobile Phone Access to 3.40 Typical Bill Payment Channels ..................57 GPRS/Mobile Internet ..............................43 3.41 Sri Lanka: Bills Paid Via Mobile Phones ....58 3.11 Sri Lanka: Socioeconomic Characteristics 3.42 Perceptions of Relative Expense of Mobile of Mobile Money Users and