DOCSLIB.ORG

Mobile Payments SCOPE

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Mobile Payments SCOPE International Practices on Mobile Payments SCOPE Evolution of Mobile Payments. Status Report. Future Direction. Mobile Payments- Currently Prevalent M-Commerce: Mobile phones linked to credit/debit cards can be used to make payments typically for transportation, vending machines etc. E-Money: Cash loaded in the mobile phones at service provider outlets. Consumers use this virtual cash as real value for all types of transactions. Banking Channel: Mobile phone used for accessing the bank accounts. All payments are routed through the bank. Mobile Payments: Different Perspectives Developed World Complimentary to the traditional payment systems. Flexibility, Ubiquity and Convenience. Enabler for wide range of M-Commerce Services. m-ticketing, m-retail, m-banking etc. Suitability for any payment amount levels. Payment systems linked to individual Bank Accounts. Markets reflect technology orientation. Driven by the industry. Mobile Payments: Different Perspectives Developing World Lack of alternative solutions. Accessibility and affordability. Limited micro payments. Concept of E-Money is very popular. Micro-Financing. Driven by MNOs. Industry Initiatives Mobey Forum MET Forum NFC Forum PayCircle IrDA Mobey Forum Preferred Payment Architecture (2003) Remote Payments Server based Wallet Local Payments Bank issued EMV card Requires dual chip phones EUROPE EC draft blueprint (2003). SimPay service (2005). Pan-European Universal Mobile Payment System (UMPS). Applicable to Any Payment Scenario Suitability to any payment amount level Availability for every mobile phone user Employment of existing standards EC Sponsored many developmental projects. SEMOPS A Pan-European effort for cross-border secure mobile payment service funded by eTEN Program. Cooperation of Banks and MNOs essential. Built on real-time credit push concept. Users (customers or merchants) interact only with with its trusted bank or MNO. Banks and MNOs interact through the Data center. SEMOPS Transaction Flow SEMOPS Commercially launched in Hungary Pilots have been completed in Greece and Italy. Commercial rollout in Greece and Italy planned in 2009. EUROPE PayBox (2004) - Austria Operator Driven (Mobilkom) and e-money based. PosteMobile (2007) - Italy Bank as Mobile Virtual Network Operator (MVNO) Projected as early example of second-generation remote payments, coupling payments with mobile digital signature infrastructure to support new, advanced mobile services. EUROPE PayPal Mobile (2006) - UK PayBox PayPal Mobile Paste Mobile Telco Centric Third Party Driven Bank Centric E-Money Institute MVNO Asia-Pacific Most advanced M-Commerce market in the world (Test bed for majority of m-Commerce & m-Payments/ Trials) Japan Mainly proximity payments NTT DoCoMo M-Wallet (FeliCa chip) - 20 million subscribers KDD M-Wallet - 5 million subscribers Two Years ahead of the rest of the world in contact less adoption. m-Payments penetrated almost all sectors. (Transportation, Retail, Hospitality, Finance and Government) Asia-Pacific South Korea Early initiatives by the carriers and banks fell apart due to mutual distrust. Payment gateway service providers became prevalent. Move towards Contact less technology in 2007. SKT - Visa, KT Freetel – Mastercard. Solutions were designed to migrate from USIM to NFC when it is widely available in 2008. m-Payments penetrated almost all sectors (Transportation, Retail, Hospitality, Finance and Government) Asia-Pacific Hongkong & Singapore Smartcards with Sony’s Contactless FeliCa chip Taiwan Smartcards : VMA, Paypass China (Biggest in subscriber base) China Union MobilePay India Paymate, mCheck, Obopay, atom USA Mobile Payments were slow to take off because of availability of other alternatives. PayPal Mobile (2006). M-Banking. Moving towards NFC based contact less Mobile Payments (m-ticketing, m-retail). Stands Third (after Japan and South Korea) in adopting contact less technology. Latin America M-Banking (Brazil, Argentina) NFC enabled Mobile Payments Forecast for Next 12-24 Months (NFC Forum) Population ASIA 67% EMEA 57% AMERICAS 54% Mobile Payments in Developing World (Philippines) Smart Money (2001) SMART Communications & Branco De Oro (BDO). Cash-In and Cash-Out at SMART and BDO offices and at a range of accredited retailers. Maximum limit of P50,000 (US$950) maintained. G-Cash (2004) Globe Telecom. Cash-In and Cash-Out at G-Cash partner merchants. SMART MONEY Cash deposits and withdrawals. Transfer of credit to prepaid accounts (SMART Load). Transfer of cash to and from users. Transfer of airtime credit to and from another user. (SMART Pasa Load) Cashless purchase at wide range of shops where retailers have SMART Money account. Direct credit from employer payroll. Bill payment. Inward international remittance from overseas (SMART Padala). Cashless purchases at at wide range of shops with MasterCard debit card. SMART MONEY - Numbers Retailer Partners - 700,000 Transactions volume - US$100 million per month. International remittance - US$50 million per month. Added cash float in BDO - US$10 million. Mobile Payments in Developing World M-PESA - Kenya (2007) WIZZIT - South Africa (2006) Celpay - Zambia (2004) - DR Congo Mobile Payments in Micro-Finance CARD – NGO Project (February 2005) Based on G-Cash Platform. Cash-in and Cash-out at authorized G-Cash retailers. G-Cash retailers authorized for disbursement of loans and collecting re-payments. BENEFITS Improved efficiency by reducing field collection effort and costs. Reduction in risk faced by the officials carrying cash. Savings to the borrower who has to travel far to make payments over-the-counter in some cases on weekly basis. Mobile Payments in Micro-Finance RBAP – TAP Project Joint venture of RBAP-MABS and Globe Telecom. Based on G-Cash Platform. Rural Green Bank of Caraga (April 2005). Training provided to 87 rural banks (October 2005). Kenya The Success of M-PESA in handling bulk disbursements of payments from organizations to employees led to the trails for disbursement and repayments of micro loans. Examples of Financial Inclusion Projects Country Provider Model Afghanistan Roshan (mobile operator) M-banking Brazil Caixa Economica Federal (bank) Card-based Banco Bradesco (bank) Card-based Chile BancoEstado (bank) Card-based Colombia Banco Caja Social (bank) Card-based DR Congo Celpay (bank) M-banking India SKS Microfinance (MFI) M-banking State Bank of India (bank) M-banking Kenya Safaricom (mobile operator) M-banking Equity Bank (bank) M-banking Malawi Opportunity International (bank) Card-based First Merchant Bank (bank) Card-based Mexico Banamex (bank) Card-based Source - CGAP Financial Inclusion Projects Contd. Country Provider Model Mongolia XacBank (bank) M-banking Pakistan Tameer Bank (bank) M-banking Peru Banco de Crédito (bank) Card-based Philippines SMART (mobile operator) M-banking GXI (mobile operator) M-banking Russia Tavrichesky Bank (bank) M-Banking Senegal Ferlo (third-party) Card-based South Africa MTN Banking (bank-MNO JV) M-banking WIZZIT (third-party) M-banking Tanzania Vodacom (mobile operator) M-banking Uganda Uganda Microfinance Ltd. (MFI) Card-based Source - CGAP Conclusions Perception of Mobile Payments is different in different parts of the world. The Developed world is moving towards NFC enabled contact less Mobile Payments, with industry consortia (GSMA, Mobey Forum) advocating replacement of SIM with multi application UICC to support NFC. Cross-border payment services like SEMOPS continue to prevail as remote payment services. Conclusions E-Money will continue to be the driver for Mobile Payments in under developed nations. Mobile Payment solutions for Financial Inclusion needs to be affordable and operationally simple to have maximum acceptance form the communities. With its mixed population, India requires different mobile payment solutions to different communities. The role of MNO is critical in implementing Financial Inclusion through mobile payments. THANKS .
Load more

Recommended publications
  • Security Cover
    BASE PROSPECTUS TELEFO´ NICA EMISIONES S.A.U. (incorporated with limited liability under the laws of The Kingdom of Spain) guaranteed by TELEFO´ NICA, S.A. (incorporated with limited liability in The Kingdom of Spain) A15,000,000,000 PROGRAMME FOR THE ISSUANCE OF WHOLESALE DEBT INSTRUMENTS This prospectus has been approved by the United Kingdom Financial Services Authority (the ‘‘FSA’’), which is the competent authority for the purposes of Directive 2003/71/EC (the ‘‘Prospectus Directive’’) and relevant implementing measures in the United Kingdom, as a base prospectus (the ‘‘Base Prospectus’’) issued in compliance with the Prospectus Directive and relevant implementing measures in the United Kingdom for the purpose of giving information with regard to Telefo´nica Emisiones S.A.U., Telefo´nica, S.A. and the issue of debt instruments (the ‘‘Instruments’’) under the programme described above (the ‘‘Programme’’) during the period of twelve months after the date hereof. Applications have been made to the Financial Services Authority in its capacity as competent authority under the Financial Services and Markets Act 2000 (the ‘‘FSMA’’) for Instruments issued within 12 months from the date hereof to be admitted to the official list of the FSA (the ‘‘Official List’’) and to the London Stock Exchange plc (the ‘‘London Stock Exchange’’) for such Instruments to be admitted to trading on the London Stock Exchange’s Gilt-Edged and Fixed Interest Market. References in this Base Prospectus to Instruments being ‘‘listed’’ (and all related references) shall mean that such Instruments have been admitted to the Official List and have been admitted to trading on the London Stock Exchange’s Gilt-Edged and Fixed Interest Market.
    [Show full text]
  • A Handbook of Vendors to the North American Payments Market
    2021 BUYERS’ GUIDE A handbook of vendors to the North American payments market Volume Eighteen, Number Eight • DigitalTransactions.net • August 2021 DigitalTransactions.net brings you the most important payments market news, in one place, updated the moment it happens Breaking news from the payments market, posted daily Concise, clean interface is easy to navigate Calendar of industry events Complete current and past issues of Digital Transactions magazine Detailed listings of payments market suppliers 13 years of payments news and analysis DIGITALTRANSACTIONS.NET CONTENTS August 2021 ■ Volume 18, Number 8 The Gimlet Eye 4 A Remarkable Industry BUYERS’ GUIDE 2021 ACH Information . Fraud Prevention . Payment Processing . ACH Processing . Gift Cards . Payment Software . Acquiring Bank . Global Acquirers . Payments Education . Age Verification . Healthcare Payments . PCI Compliance . Agent & ISO Program . High Risk Processing . PCI Security . Alcoholic Beverage POS Software . Identity Verification . Portfolio Assessment . Alternative Payments . Imaging Services . Portfolio Purchases . Associations. Imprinter Equipment & Supplies . Portfolio Sales . ATM Equipment & Services . Incident Response & Forensics . POS Cloud . Auto ID/RFID Technologies . Independent Software Vendors . POS Software . Automated Sales Tax Solutions . Independent Sales Organizations (ISOs) . POS Stands . Back Office Automation . Instant Card Issuance . POS Supplies . Bar Code Technology . Insurance . POS Systems . Bill Payment and Presentment
    [Show full text]
  • World Bank Document
    在销售端实现无现金交易： 发达国家的成功与失败案例 子储蓄...电子汇款...很多生活在发达国家 尽管这些发达国家的经历不能直接转 Public Disclosure Authorized 电的人对这些方式司空见惯，因为进行电子交 化为可供发展中国家借鉴的教训，但 易是他们日常生活的一部分。毕竟，通过借记卡或信 本文力图向大家传达这样的信息：在 用卡支付账单或提取现金非常普遍，谁也不会对此多 发展中国家的环境下，哪些方案可 加考虑。 能可行，哪些或许不可行，以及哪 些是共性的，哪些可能是个性的。 对于持有储蓄账户的人来说，借记卡已经成为标准支 付工具。在大多数发达国家，借记卡的普及率都非常 电子支付市场在亚洲相对成功可能有其特别的原因， 高。制约借记卡进一步推广的因素主要有以下三点： 即客户对新技术的青睐、移动运营商在品牌建设战略 中传播创新理念的重要性、借记卡的普及率较低。现 • 银行账户在人群中的普及率。 在，很多亚洲模式又重新在欧洲找到了出路。有鉴于 • 在缺乏经济活力或人口稀少的地区，低迷的经济形 香港对交通卡（八达通卡 Octopus）的成功运作，英 势将会制约终端设备（自动柜员机 [ATM] 或销售端 国也推出了相似的业务（Oyster 卡）。日本和韩国的 Public Disclosure Authorized [POS] 设备）的充分部署。 运营商（分别为 NTT DoCoMo [DCM] 和 SK Telecom） • 在通信基础设施有限或交易价值非常低的市场环境 为客户提供了具备超短程通信技术1 的手机，使用此 下（这些情况下通信费占交易成本的比例可能非常 类手机进行当面移动支付的益处开始逐步显现，而很 高），能维持实时支付授权的通信成本。 多欧洲运营商对内嵌 NFC 功能的手机充满兴趣，并热 切期待其在欧洲的推广。 上述三点对很多发展中国家来说都是重要的制约因 素，而这些地方的银行业务推广通常还受到社会经济 对于发达国家中使用智能卡和手机支付平台的状况， 阶层和地理位置的限制。即使在发达国家，这些因素 本文将有关这两方面的典型失败案例和一些可借鉴的 也可能产生有利于选择电子支付方案的商机，从而弥 经验进行了梳理。我们从几十个案例中撷取了几个 补纸质现金的随意性和借记卡需要部署大量的通信设 实例2，并且无意对任何特定方案的细节展开深入讨 施的缺点。 论。我们并非只为了向您讲述这几个情节跌宕的冒 Public Disclosure Authorized 险故事，而是要从失败和成功的经验中汲取有用的教 然而，很多试图推行前沿电子货币和支付设备以取代 训。尽管这些发达国家的经验不能直接转化为可供发 通过借记卡提取现金的做法均告失败，这是因为客户 展中国家借鉴的教训，但本文力图向大家传达这样的 通常会对这些系统的必要性或实用性产生质疑。欧洲 信息：在发展中国家的环境下，哪些方案可能可行， 很早便对该市场进行探索，从20 世纪90年代中后期的 哪或许些不可行，以及哪些是共性的，哪些可能是个 现金替代物智能卡（Mondex、Proton）到 21世纪初的 性的。 互通移动支付平台（Simpay、Mobipay），但显然并不 算成功。 三类基本方案简述 NOTE FOCUS 而在亚洲，包括日本、香港、韩国、新加坡、台湾在 我们对三类方案进行讨论，并且在每类案例中介绍两 第51期 内的市场却相对成熟，正是它们率先开发出新方案， 个供应商（有不同的市场接受程度）的运作。尽管我 2008年12月 实际上也获得了一定的成功。所以相对于欧洲市场的 们关注的重点是通过手机进行支付，但先从使用智能 惨重失败，我们可以将目光投向亚洲，学习其在无声 卡的两个案例切入，因为该方式与手机支付具有很多
    [Show full text]
  • White Paper Contents
    BREAKTHROUGHS IN THE EUROPEAN MOBILE PAYMENT MARKET White Paper Written by Laurent Bailly and Bernard Van der Lande Executive Summary Mobile payment has yet to fulfil its potential. The time is now right for the mobile phone to step up and become an everyday, convenient payment method. Technological advances, such as the new generation of mobile devices, the emergence of contactless payments, IP everywhere and 3G, coupled with the adoption of the new legal framework for payments and the creation of the Single Euro Payment Area (SEPA) means the future for mobile payment has never been more promising. Contents The future of mobile payment will likely belong to contactless technology Still in its pilot stage in Europe, Near Field Communication (NFC) contactless Executive Summary 1 payment is a huge opportunity for proximity payment, as it addresses both the cash and card payment markets. Introduction to mobile payment 2 Why the time is right for Collaboration between stakeholders is key mobile payment 4 Standardisation and business model issues need to be resolved through strong collaboration between mobile operators, banks and retailers, so as to Mobile remote payment 5 limit the number of rival solutions, which would inhibit mobile contactless Mobile proximity payment 11 payment adoption. Conclusion 16 Mobile remote payment will prosper in the short term The technology for mobile remote payment is already mature with opportunities beyond mobile content, such as pre-paid top-up and electronic bill payment. For mobile operators, it provides new opportunities to drive additional revenue via mobile shopping and payment traffic. The market is also accessible to banks and new entrants.
    [Show full text]
  • Tapping Into Portfolio Power Players
    News August 23, 2010 • Issue 10:08:02 Industry Update .......................................14 Debit surcharges targeted by California lawmakers .......................42 Tapping into portfolio Have NFC payments reached tipping point? .....................................43 power players Skimmers shifting from ATMs to gas pumps .......................................45 Trade Association News MWAA inspires and informs once again ........................................47 Features SellingPrepaid Prepaid in brief ....................................30 Legislative fallout for gift card providers By Thom Aldredge, World Gift Card .......32 Views ISOs, MLSs and fi nancial services re-regulation By Patti Murphy The Takoma Group ...............................26 Fraud trends in 2010 By Nicholas Cucci Network Merchants Inc. ........................28 Education Street SmartsSM Variations on valuations By Ken Musante, Eureka Payments LLC ....54 Going global in Europe By Carrie Hometh, Payvision..................58 Succeeding at PCI compliance – Part 4: Maintaining the program By Dawn M. Martinez First Data Corp. ...................................60 teady income from POS terminal sales and leasing now seems like the Technical details: stuff of fairy tales, so many new merchant level salespeople (MLSs) What to share and what to spare strive to build residual streams rapidly by signing merchants who are easy to reach and can make quick decisions. Usually these are mom- By Dale S. Laszig S and-pop stores or other small enterprises. Ultimately, however, diversification is Castles Technology Co. Ltd. ...................62 necessary to create the strongest portfolio possible; this is especially important Are your online contracts enforceable? during a recession. By Sarah Weston Jaffe, Raitt, Heuer & Weiss PC ...............64 One way to diversify is to pursue prospects who, due to the size or complexity of their businesses, take months or years to make decisions about transaction The proper care and feeding of LinkedIn processing.
    [Show full text]
  • The Consumer Implications of the Use of Electronic and Mobile Payment
    THE CONSUMER IMPLICATIONS OF THE USE OF ELECTRONIC AND MOBILE PAYMENT SYSTEMS Written by: SiLu Liu and Yue Zhuo Supervised by: Dilip Soman and Min Zhao November 2012 1 Table of Contents Executive Summary ........................................................................................................................ 4 1. A Model for Retail Electronic Payment ................................................................................... 6 1.1 Elements of the Model .......................................................................................................... 6 1.2 Consumer Perspective ........................................................................................................... 7 1.3 Business Perspective ............................................................................................................. 8 2. Case Studies ............................................................................................................................... 10 2.1 Credit Cards ......................................................................................................................... 10 2.2 MasterCard PayPass ............................................................................................................ 12 2. 3 Simpay ................................................................................................................................ 13 2.4 Dexit ....................................................................................................................................
    [Show full text]
  • When Collaboration Makes Sense – and When It Doesn’T
    When Collaboration Makes Sense – And When It Doesn’t By Eric Grover Digital Transactions September 30, 2018 Through the years, the network game hasn’t changed. Payment systems need volume, and that means interoperability with other networks. The key is to be smart about it. The payments world is a patchwork of overlapping and interdependent networks. For success, networks need a path or paths to critical mass. For most, leveraging directly competitive and adjacent systems is essential. In payments, network effects and habit matter enormously. The most feature-rich, secure, or cheapest payment system in the world is worthless if only one consumer or business uses it. By contrast, systems with billions of users are compelling, notwithstanding imperfections. To boost usage, networks partner, often ceding some control and economics. In free-market capitalism, no relationship, however one-sided, is consummated unless both parties calculate that they’ll profit. But payment-system relationships evolve based on changing relative power and interests. For example, imagine a world where 50% of Mastercard transactions were initiated over Apple Pay. Those able to shift payments share command better economics, so, at a minimum, Apple would take a bigger bite of interchange. While there are hundreds of national retail-payment schemes, only a handful of systems are or aspire to be global. Mastercard and Visa are the only genuinely planetwide retail-payment systems. They command the lion’s share of cross-border retail payments in every country except China, Iran, North Korea, Sudan, Syria, and the part of Ukraine occupied by Russia. Their open model leveraging tens of thousands of banks to deliver payments to end users has been the most successful payments-system strategy ever.
    [Show full text]
  • Paying by Mobile
    WHITEPAPER Paying by Mobile This whitepaper is an extract from: Mobile Payments Strategies & Markets 2007-2011 . information you can do business with White Paper ~ Paying by Mobile Paying by Mobile Introduction The user demand for convenient and intelligent ways in which to make payments for goods and services using a mobile phone is creating exciting opportunities for those organisations that are part of the mobile payment ecosystem. The ecosystem includes mobile operators, banks, retail merchants & transport operators, handset manufacturers (and their suppliers), and a whole range of new entrants eager to put their innovative mobile payment solutions into the hands of mobile phone users. Mobile payment applications and services are already available in most regions in a variety of formats, and where they are being adopted, either in trial or production mode, the user feedback has been very favourable. As is the case with other, older, payment schemes like cash, the current mobile payment market does not have a single, definitive, payment method and there is substantial variation between what particular scheme is adopted from region to region. Mobile payment schemes vary from the remote methods, such as Premium SMS schemes for paying for digital content dominating in Europe, to the physical, whereby, in regions such as the Far East and China, users take their mobile phone to the physical storefront to pay for goods via contactless credit/debit card schemes. This white paper introduces the reader to the main types of mobile payment schemes and investigates market drivers/constraints and forecasts for them. Mobile Payment Types As with the physical and virtual worlds there are many different and competing categories of mobile payments currently available.
    [Show full text]
  • The Consumer Implications of the Use of Electronic and Mobile Payment Systems
    The Consumer Implications of the Use of Electronic and Mobile Payment Systems SiLu Liu, Yue Zhuo, Dilip Soman and Min Zhao Originally Prepared in November 2012 for the Financial Consumer Agency of Canada (FCAC) 15 November 2012. Research Report Series Behavioural Economics in Action Rotman School of Management University of Toronto ROTMAN SCHOOL OF MANAGEMENT 2 Correspondence and Acknowledgements For questions and enquiries, please contact: Professors Min Zhao and Dilip Soman Rotman School of Management University of Toronto 105 St. George Street Toronto, ON M5S 3E6 Email: [email protected] or [email protected] Phone Number: (416) 946-0195 ROTMAN SCHOOL OF MANAGEMENT 3 TABLE OF CONTENTS Executive Summary ....................................................................................................... 5 1. A Model for Retail Electronic Payment .................................................................................. 6 1.1 Elements of the Model ........................................................................................................ 6 1.2 Consumer Perspective ........................................................................................................ 7 1.3 Business Perspective ............................................................................................................ 8 2. Case Studies ............................................................................................................. 11 2.1 Credit Cards ......................................................................................................................
    [Show full text]
  • Banks Operator Network Payment Parties Payment Intermediaries - M Merchants Customers Different Interests: Different with With
    …… Lecture 7 Application Domains II: M-Payment II Mobile Business II (SoSe 2021) Prof. Dr. Kai Rannenberg Chair of Mobile Business & Multilateral Security Goethe University Frankfurt a. M. 1 . …… Agenda . Introduction . M-Payment Parties . Different Interests & Conflicts . M-Payment Infrastructures . Examples of M-Payment . Conclusion . 2 . …… Introduction . The mobile payment space is becoming more and more competitive, with both established leaders and start-ups entering the market. All parties are staking their claim for market share and consumer acceptance. In addition to differences in the applied technologies (cf. previous lecture), these solutions also differ in their business models, the involved parties, and their interests. 3 . …… Agenda . Introduction . M-Payment Parties . Different Interests & Conflicts . M-Payment Infrastructures . Examples of M-Payment . Conclusion . 4 . …… M-Payment Parties Different parties with different interests: . Customers Banks . Merchants Merchants . Network operators . Intermediary . Financial Service Providers Intermediaries Network Customers operator . 5 . …… M-Payment Parties Customers | 1 It was often argued that mobile payment services provide several advantages to customers such as: . Mobility properties enable the efficient utilisation of travel and waiting time. Increased comfort & user friendliness through the independence towards time and place (particular due to the fact that there are less and less branches). In conjunction with personalised offers, spontaneous, time-independent shopping & payment is enabled. Enhanced security with regard to payment transactions in the on- & offline-world. 6 . …… M-Payment Parties Customers | 2 But: Are these “advantages” obvious to customers? And: How do these “advantages” relate to traditional means of payment? . 7 . …… M-Payment Parties Intermediaries . Intermediaries are processing payments between the different parties (e.g.
    [Show full text]
  • The Financial Lives of Government Employees
    The Financial Lives of Government Employees The Potential of Digital Finance in Sierra Leone Acknowledgements This report documents findings from research on the financial lives of government employees in Sierra Leone. The research was commissioned by the Government to People Payments Project – Building Digital Ecosystem thanks to funding from USAID. UNCDF MM4P and Bank of Sierra Leone would like to acknowledge Intellecap for conducting the research and thank the authors Usha Ganesh, Somatish Banerji, Anuja Kaushal, Aditi Aiyyer, Ritwik Bhattacharjee, Usman Khaliq and Rohit Wadhwani as well as the government employees who shared information about their financial lives. Table of Contents 4 Executive summary 6 Introduction 14 Survey findings 38 Use case identification and analysis 61 Recommendations - Proposed use case pilots 70 Way Forward 73 Annexures The Financial Lives of Government Employees The Potential of Digital Finance in Sierra Leone EXECUTIVE SUMMARY Financial inclusion is a key driver of equitable economic growth. Financial literacy, access to financial services, credit and formal financial markets are critical components of financial inclusion that can help transition developing countries to accelerated socioeconomic growth paths. Digital financial services (DFS), by leveraging ubiquitous and innovative technologies like mobile phones and point-of-sale (POS) machines, can play a catalytic role in helping developing countries realize financial inclusion. With Sierra Leone’s economy recovering from the twin shocks of civil war and health crisis, the level of financial inclusion in the predominantly rural country is very limited. 87% of the economically active population of the country does not have access to formal and regulated financial systems, while the remaining 13% avails of financial services through a limited number of financial access points such as bank branches and ATMs.
    [Show full text]
  • Shiny Sreekumar 201 210 414 Gudenauer Weg 57 53127 Bonn [email protected]
    Master Thesis Information Management Faculty of Computer Sciences University of Koblenz-Landau Biometric Authentication in Mobile Payments Supervisors: Prof. Dr. J. Felix Hampe Stefan Stein Submitted by: Shiny Sreekumar 201 210 414 Gudenauer Weg 57 53127 Bonn [email protected] Koblenz, September 2010 1 Acknowledgements I would like to acknowledge and thank all the people who contributed, in different ways, to the completion of this thesis: • Professor Dr. J. Felix Hampe for his guidance and support always and for pointing me in the right direction with new ideas. Above all, I am thankful for his undying patience. • Stefan Stein for his friendly assistance at all times. • Professor Elaine Lawrence and Dr. Agnieska Zmijewska who, through email exchanges, sent me relevant papers and answered any queries I might have had. • Lee Barr for the numerous iterations of proof-reading and pep-talks. • My mother and my dear friends for all their help, patience and understanding. Most of all, I would like to thank Alexandra Bohnet for constantly pushing, believing and the final “This is it” weekend! Without her, I could not have done this. Shiny Sreekumar Bonn, September 2010. Picture on title page put together by author using following sources: Pantech PG6200 Phone - (PC Welt, 2006); Fingerprint – (O'Gorman, 1999) Sound wave – www.nanobioart.com/nanolab/category/day7 ; Euro – www.wikipedia.org/wiki/Euro Shiny Sreekumar: Biometric Authentication in Mobile Payments 2 Abstract Mobile payment has been a payment option in the market for a long time now and was predicted to become a widely used payment method. However, over the years, the market penetration rate of mPayments has been relatively low, despite it having all characteristics required of a convenient payment method.
    [Show full text]