Vodafone M-Pesa

Impact of mobile money

on Romanian society

Mar 2015

Dana Popescu

General Manager M-Pesa

Serviciul M-Pesa este furnizat de Vodafone România M-Payments S.R.L . autorizata de către

Banca Naţională a României si înregistrată cu nr. IEME-RO-0002/16.12.2013 în Registrul

Instituţiilor Emitente de Monedă Electronică.

What is M-Pesa and why do we need it in Romania?

130% is the penetration level of

mobile telephony in Romania

Each Romanian

has a mobile

phone

Still low level of

financial

services

adoption

43% of Romanians (>15 yo) do

not use financial services due

to lack of proximity and prices

M-Pesa is Vodafone mobile-money transfer

and payment service which do not require a

bank account, internet connection or a

smartphone

Wh

at?

W

ha

t?

Opportunity Approach

Vodafone is well positioned to address customer needs and build a successful mobile money business together with its Partners

M-Pesa can accommodate

customers expectations:

safe, fast, easy available,

cheap service for money

transfer

M-Pesa is a strong and

sustainable differentiator for

Vodafone, addressing clearly

identified customer

segments

M-Pesa can evolve into part

of a wallet solution for specific customer segments

High % of pop. unbanked Cash driven society

Large int. remittances market [EUR bn]

Large domestic money transf. mkt. [EUR bn]

AU

7.0

99%

HU

8.6

78%

CZ

8.9

81%

RO

18.2

48%

52%

Unbanked

Sep 2014

6,224

84%

16%

Sep 2013

5,960

15%

85%ATM withdr.

Card tranz.

2011

1,27

2014e

1,52

2013

1,43

2012

1,35

2014

8.8

3.7

2012

9.2

4,5

4.7

2008…

10.7

5,9

4.8

3,9 4,3

7.5

3.5

2013

InformalOfficial

Identifying key segments to target - Core adopters of money transfers

406 April 2015

Parent

Displaced

worker

Parent

(household)

Elders

Student/

Youth

Youth

Parent to Student/ Pupils

studying in other locality

than home

Friends

1

2

4

3

1

Family to Elders living in

different area

2

Displaced worker sending

money back to family3

Friends transfers - Family

members sending gifts /

support to other family

members

4

Key end-users segments doing one-to-one transactions, whether sending money

to family members, among friends or for informal transactions

End-users

core adopters

of p2p

transactions

5

Secure and fast

No registration fee

No monthly fee

Multifunctional Send money Pay bills Recharge prepaid Pay at merchants

Availability 24 x 7 rural & urban No need for internet access No need for bank account/

card account

What can you do with M-Pesa?

SENDER – card

holder(abroad or domestic)

6

www.m-pesa.ro

Jo

urn

ey

be

ne

fits

• Easy to use and

access from a

secured web

interface

• No charges to

send money (only

exchange fee of

the bank from

EUR to Ron)

Customer Journey – Card2M-Pesa End2End Flow

RECEIVER(domestic)

• Always in control of

your money – in m-

pesa account

• Easy to receive

money from abroad

• Cost me nothing to

receive money in my

m-pesa account

M-Pesa partners’ benefits – distributor

• A new source of revenue

• Increased traffic in partner’s locations

• Market study shows that M-Pesa has the ability to attract new customers in Distributors’ portfolio.

M-Pesa partners’ benefits – merchants

Lower commission for payment transactions -compared with bank POS

Reduced cost for cash management

High availability of fundscollected via M-Pesa payments

Customers benefit of

one of the most

secured payment

method – a key

benefit mainly for

online payments

1 Transfer bani2 Retrag bani3 Depun bani 4 Reincarcare5 Plati facturi

6 Plati la comerciant7 Contul meu

8 Tarife M-Pesa

M-Pesa increases the level of financial inclusion, thus acting as a

driver of economic growth

M-Pesa stimulate the local economy and generate new jobs in the

distribution network

M-Pesa streamline the time and resources needed for sending

money and thus increase quality of life day-to-day customer

M-Pesa ensure transparency and control over the flow of money

M-Pesa benefits for Romanian market

9

• Location based

advertising through

SMSs sent in target

proximity

Mobile advertising: geo-location

10

Mobile advertising: geo-location

11

• Location based

advertising

through SMSs

sent in target

proximity

Mobile advertising: geo-location

12

• Location based

advertising

through SMSs

sent in target

proximity

“SMS INSERT”

SMS sent after

Cartela

Vodafone

recharge

Mobile advertising: SMS Insert

13

«Ai incarcat 3EUR. Credit total:

4.5EUR.

Trimite minim100 de lei prin

M-Pesa celor dragi si primesti

un Mega Bonus. Detalii pe

www.m-pesa.ro.»

Multumesc