the next wave of mobile financial services-02
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The Next Wave of Mobile Financial Services-02 david yatesTRANSCRIPT
DAVID YATESPresident, Business Development & Innovation
Mobile Update
WESTERN UNION: A GLOBAL REMITTER
MULTICHANNELMULTICHANNEL• 445,000 cash agent locations• 20 countries with wu.com • 40 bank ABMT partnerships• 14 country partnerships for Mobile• Global partnerships with leading• Global partnerships with leading
MNOs
• US$5.2 billion revenue (2010)• 200 countries and territories
• Over 16,000 corridors• $76 billion in P2P principal
WESTERN UNION STRATEGY FOR MOBILE
Partnering with banks, mobile network operators (MNOs) or independents to enable mobile-based transactionsp
Partner with banksService banked consumers using the Western Union gmobile channelExample: ABSA Bank South Africa
Western Union on
Mobile Banking
Partner with MNOsPrimary focus: unbanked consumersWestern Union Primary focus: unbanked consumersReach underserved receiversExample: Safaricom / M-PESA Kenya
onMobile Wallet
ONE CONNECTION: ALL COUNTRIES, ALL CHANNELS
Bank Accounts WU-Core systemWU-gateway
WU-gatewayDirect
agreement
Bank Accounts
SEND RECEIVEDirect
agreementAccounts
Cards
M-Wallets
WU Core system WU-gatewayagreement
Paymentswitch
Cards
M Wallets
agreement
Paymentswitch
Other OtherCards M-WalletsOther Other
Westernunion.com
MNO PARTNERSHIP PRODUCTS
Western Union is the largest international branded cash in/cash out network for mobile
Sender uses mobile wallet as source of funds. Receiver payout in cashMobile Send1 Receiver payout in cash, mobile, or bank channels
Mobile Send1
Mobile ReceiveFunds directed by Sender (Push or alternatively by the Receiver (Pull) to the wallet or account
2
NEW PRODUCT DEVELOPMENT
Money Transfer Mobile AppsDirect consumer
Transfer FundsDirect consumer
Core money transfer
T t k t N th
$$$
Target markets: North America & Europe
P2P Customers
Western Union Yellow PhoneMobile allet / prepaidMobile wallet / prepaid
Core money transfer
T t k t i t i
Transfer Funds
P2P C tTarget markets: emerging countries P2P Customers
WESTERN UNION COMPETITIVE ADVANTAGESMobile leverages the same trusted platform used by 445 000 locations in 200 countriesMobile leverages the same trusted platform used by 445,000 locations in 200 countries
Western Union Money Transfer endorsed by the GSM Associationy y
CONSUMER INSIGHTS
WHY DO THEY SEND MONEY?Regular support/ living expenses 60%
Special occasion (birthday/ wedding) 44%
Regular support/living expenses go to fundamental needs
Holiday (Christmas/New Year) 43%
Emergency / urgent transfer 26% 78
50
Groceries
Utilities or utility bills
%
Medical, doctor or hospital bills 21%
Educational expenses for a student 15%
38
31
20
Payment of medical expenses
Rent payments
School fees
13
9
8
7
Pay debts
University/other education fees
Savings and investments
Mortgage payments 7
4
1
1
Mortgage payments
Business reasons
Alimony
Family/Friends/Personal use
Regular, loyal customer
Source: Western Union Consumer Tracking Study, US Outbound Senders
1Clothing
WHERE DOES THE MONEY GO?66% of migrants worldwide send remittances to their loved ones at home
41%Russia/CIS
56%43%
41%
European UnionCanada
Russia/CIS
%73%
64%
OAsia
Latin America
76%75%75%
CaribbeanMiddle East
Oceana
87%82%
76%
Africa South AsiaCaribbean
CASH STILL A PREFERRED METHOD OF PAYMENT IN MUCH OF WORLDOF PAYMENT IN MUCH OF WORLD
CASH INTEROPERABILITY WITH MOBILE IS KEY
Source: McKinsey, “Perspectives on the Worldwide Payments Business,” Feb, 2010.
CONSUMER PRIORITIES: CHANNEL AGNOSTIC
• Funds sent immediatelyS • Funds sent immediately• Funds available for pickup immediately
Speed
• Large distribution network• Channel alternatives based on customer preference
Convenience• Channel alternatives based on customer preference
• Trusted brand• Consistent experience – no surprises• World-class service
Reliability
KEY CONSUMER LESSONS
• Average remittance $200; average cash load $20• Remittances drive subsequent volume• Mobile account adoption strengthened by remittances• Interoperability with cash network vitalp y• Multiple services, utility bill, airtime top-up drives consumer adoption• Slightly lower remittance average, but more frequentL i b f f ll t ti l• Learning curve before full potential
• Trust factor and brand recognition extremely important
Successful mobile wallet programs could attract 25-40% of transactions
PARTNERING WITH WESTERN UNION
Gateway & Certification Program allowing world-class m-Wallet platforms to connect to Western Unionp
Quick scalability and easy integration with m-Wallets and Mobile BankingBanking
Mobile NetworkOperators/ Carriers
Financial Institutions
WESTERN UNION PARTNERSHIPS
80K locations active for directed transfers in 48 countries
wu.com activated in 5 countries
14 t t i l14 country agreements in place6 active in 5 countries: Philippines Kenya Malaysia South Africa CanadaPhilippines, Kenya, Malaysia, South Africa, Canada
5 more countries in progress
9 mobile operator centric 4 bank centric9 mobile operator-centric, 4 bank-centric
Over 130 M potential connections to subscribers/accounts
Western Union leading the number of cross-border initiatives in multiple geographies
NEWS AT MOBILE WORLD CONGRESS
• Agreement to launch Mobile Money Transfer service in Middle East, Asia, Africa, ,
• Etisalat Group has operations in 18 countries d 135 illi b iband 135 million subscribers
• Will enable Etisalat subscribers to send receiveWill enable Etisalat subscribers to send, receive money using their mobile phones
CONCLUSION
Remittances key part of Mobile Money Programs
Western Union has built The mobile technology platformgy p
Partnerships with key players
Western Union is positioned toWestern Union is positioned to play at the center of the Mobile channel
WESTERN UNION IS LEADING THE WAY FOR MOBILE MONEY TRANSFER
THANK YOU