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1 Copyright © 2013 mahindra mahindra comviva Technologies Limited. All rights reserved.

Leveraging APIs to drive mMoney innovation

-- Expanding services beyond P2P

-- Africacom, November 2013

2 Source: Operator, Mahindra Comviva

Contents

Growth profile - Mobile money services

Problems with current systems

Accelerating growth with money APIs

Tips for take-off

3

400

200

100

0

300

2011 2012

74

310

2013 (JAN-MAY)

254

Transaction Volume (million)

Mill

ion

50.8%

0.1% 7.9%

0.4%

24.8%

14.1%

2%

41.5%

15.0% 0.3%

0.2% 21.4%

19.2%

2.5%

41.9%

14.4% 0.7%

0.3% 19.0%

21.0%

2.7%

Cash-in

Cash-out

Utility Payments

Airtime top-up

Merchant Payments

P2P Transfers

Bulk Payments

Transaction

volume

Growth Profile – Mobile Money Services

Recharge and P2P are dominating

254

4

Service expansion limited by current systems

Merchants have custom business requirements creating significant IT overheads

and escalations in costs and complexity

Average industry merchant on-boarding time - 4-6 weeks depending on complexity

of integration

Multiply time to market with the number of partnerships needed to embed digital

payment instruments into consumers’ lives

Accept mobile money as a payment

instrument

Accept EMI for payments >USD 1,000

Allow customers to post credit requests

and receive funds from social network

towards payment

Accept mobile money as a payment

instrument

mMoney platform needs to interface with

merchant’s till and billing infrastructure for

processing payments

Directly debit customer’s mobile money

account

--- Need to move away from a do everything mobile money system

5

Levers to displace cash

More

Merchants

More

Consumers

More

Volume

More

Transactions

Acc

epta

nce

Gro

wth

Fin

anci

al

Incl

usi

on

Pro

du

ct

Pen

etra

tio

n

Sm

all T

icke

t

Tran

sact

ion

s

• The cost of cash is high

• Approximate 1.5% of the country’s GDP

6

Transaction volumes dependent on number of

acceptance points

85,000

8,600

3,000

Tigo Pesa, Tanzania (Oct 2013)

Zaad, Somaliland (Apr 2013)

Orange Money,

Madagascar (Nov 2012)

7,000 Airtel Money, India

(Feb 2012)

Number of merchants

-

10

20

30

40

50

60

70

80

90

- 20 40 60 80

Me

rch

an

ts (

‘00

0)

Monthly transactions (million)

Comparative analysis of transaction volumes and acceptance points

Tigo Pesa,

Tanzania

Zaad,

Somaliland

M-Pesa,

Kenya

Orange Money,

Madagascar

Airtel Money,

India

Direct correlation between transaction volumes and acceptance points

60,000 (Plan to reach 100,000

by Apr 2014)

M-Pesa, Kenya (Jul 2013)

7

Levers to displace cash

More

Merchants

More

Consumers

More

Volume

More

Transactions

Acc

epta

nce

Gro

wth

Fin

anci

al

Incl

usi

on

Pro

du

ct

Pen

etra

tio

n

Sm

all T

icke

t

Tran

sact

ion

s

• The cost of cash is high

• Approximate 1.5% of the country’s GDP

8

Expanding services using APIs

Helps to get into the app store

so more people can find us!

Helps to reach the long tail

Makes products part of

customer conversations

Provides opportunity to sell

more by bringing purchase into

the app itself

Provides more time to

innovators and entrepreneurs

Developers can

drive transactions

AP

I w

ealt

h

Citizen developers

Professional developers

Hobbyists

App stores

— APIs are application programmable interface that allows outside systems to interface with existing platform

9

APIs - path to new business opportunities

— Provide customers with the ability to innovate based on the functionality they want to use

Business models are evolving...

Stores (800)### Websites Web APIs

...and growth is accelerating dramatically

Number of banking apps (worldwide) Number on new Financial Services APIs launched (worldwide)

By 2015, 25% of banks in the Global 1,000

will have launched their own app store

By 2015, 50% of banks in the Global 1,000

will have launched an API platform

100000

75000

50000

25000

0

200

180

160

140

120

100

80

60

40

20

0 2013 2014 2015 2016 2005 2006 2007 2008 2009 2010 2011 2012

Source: Gartner 2013

10

APIs - path to new business opportunities

— Provide customers with the ability to innovate based on the functionality they want to use

Source: Gartner 2013

1 billion API calls / day

(May 2012)

1.4 billion API calls / day

(May 2012)

13 billion API calls / day

(May 2011)

5 billion API calls / day

(April 2010)

1 billion API calls / day

(Q1 2012)

1.1 billion API calls / day

(April 2011)

1 billion API calls / day

(January 2012)

5 billion API calls / day

(October 2009)

You

Post?

You

Check-in?

You

Tweet?

You

Facebook?

You

“Candy Crush”?

Consumption of APIs

is growing — FAST!

Consumption of APIs is growing fast

11

Use case 1: Online purchase using mobile money

Illustrative

Merchant e-commerce portal Customer mMoney system

Browses an e-

commerce portal

Selects item(s) to

purchase

Portal displays

options to purchase

Selects mMoney to

pay

1 Portal redirects to

mMoney system to

authenticate customer

2

Displays payment

confirmation post

successful

authentication

4

Customer

authentication is done

Debits customer’s

wallet and credits

merchants’ wallet

Redirects to portal

3

API used

Account debit

12

Use Case 2: Credit Disburse to customers

Illustrative

Micro-credit organization Customer mMoney system

SACCO* agent

(disbursement

officer) logs into the

portal

Selects loan

disbursement option

1 Receives instruction with

customer details

Identifies the respective

customer’s mMoney

wallet to be credited

Credits customer’s wallet

2 Receives credit in the

wallet

3

API used

Account credit

Sends confirmation to

admin’s portal

4

*SACCO - Savings and Credit Cooperative Organization

13

Use Case 3: Online purchase using merchant app

Illustrative

Customer mMoney system

Logs into the shopping mobile app of

a merchant

Selects merchant and item(s) to

purchase

Selects mMoney to pay

App sends request to mMoney system

for customer authentication

1 Authenticates customer using IVR

(this is required because app is from

3rd party)

mMoney system debits customer’s

wallet and credits merchant’s wallet

Sends payment confirmation

response to the app

2

API used

Account debit

App displays confirmation of purchase

post successful authentication

3

IVR

14

The evolution of APIs

Internal APIs

Partner APIs

Public APIs

Platform Extensions • Administration

• Reporting

• Service flexibility

Personalization, Acceptance • Merchants

• Agent Network

• Value Added Services

The Power of Many • PayPal

• Google Wallet

• UIDAI India

15

Executing Public API Strategy

Governance

Monetization

What It Takes

Risk, Security, Fraud Control

Certification

Developer Portal

16

Open APIs shift control from financial service providers

to consumers

Present: Financial institute control

Financial

institutions

Product

Manufacturing

Technology Distribution

Risk and

regulation Branding

Pricing

2014 and beyond: User control

Value network

enablement

New Services

Distribution

Branding

17

Mahindra Comviva has a 38% share of the

MNO-led financial services market in Africa

Tanzania

Cote

d'Ivoire

Morocco

Sierra

Leone

Senegal

Zimbabwe

Cameroon

Botswana

Mauritania

Gabon Burkina

Faso

Chad

Congo B

DRC

Ghana

Guinea C

Kenya

Lesotho

Madagascar

Mali Niger

Rwanda

Somalia

Malawi Zambia

Uganda

Airtel France

Telecom

Maroc

Telecom Tigo NationLink

Vodafone

Econet

mobiquityTM mMoney footprint

Source: GSMA, Mahindra Comviva research, Wireless

Intelligence Q1 2013, Africa’s population (Q1 2013): 1,090 million

Live

deployments:

Planned

deployments: Airtel

France

Telecom

Maroc

Telecom Somtel Telecel

Nigeria

Seychelles

Egypt

Guinea B Central African

Republic

Powers financial services for 31 MNOs in

26 African countries

Addresses131 million customers or 12%

of Africa’s population

Processed 310 million transactions in

2012

Handled transactions worth US$ 4.8

billion in 2012

18

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Copyright © 2013 mahindra mahindra comviva Technologies Limited. All rights reserved.

Thank you Visit us at Stand C08

20

Ensure “ease of use"

Best practices

Elegance

Simple

Not too much system focus

Flexibility

Design not restricted to

programmer only

Managed

Security/support

Marketing

Awareness

Value

Breadth of use

UX

Ease of use

Bu

sin

ess v

alu

e

System complexity

Services

Software

Modules

Don't build the wrong kind of supply

High

Low

Low

High

21

Action plan for service providers

Treat your public Web API program as a key component of

your organization's business and go-to-market strategies.

Minimize risk by starting with inwardly focused Web APIs for

mobile enablement and internal innovation, and then expand

the strategic role of Web APIs incrementally as you gain

experience.

Establish a cross-functional team appropriate for the maturity

level of your Web API program.

Establish clear program goals with quantifiable metrics that

can be tied back to business value.

Consider and address the governance and resource

requirements before releasing your Web API outside your

company

Don't assume "if we build it, they will come." Support is just

as important as design principles.

To get started building great open APIs, start by using some

great open APIs, like those of Twilio, Amazon, and Facebook