txtmoney overview, feb ´09
TRANSCRIPT
AN OVERVIEW, of , a mobile money services suite.
MONEY TALKS
© 2009 Fourth Screen Incorporated ApS.
© 2009 Fourth Screen Incorporated ApS 2
Notice
Thisdocumentisprovidedinconfidence.Thereceiverisnotauthorizedtoreleaseittoathirdpartyexceptwithinhisorganizationforpurposesofreview.
Disclaimer
Thisdocumentisnotanofferingcircularandhasnotbeenreleasedincollaborationwith,orapprovedby,anygovernmentalorregulatoryauthority.ThisdocumenthasbeenpreparedbyFourthScreenIncorporatedApS.andcirculatedtoanumberofprospectivepartners.ThepurposeofthisdocumentistoprovidepreliminaryinformationabouttheCompany’sproductsandservices,inordertoassistindecidingwhethertoproceedworkingwiththeCompanyornot.Eachrecipientacknowledgesthatthisdocumentwillbeusedsolelyforsuchpurpose.EachpersonreceivingthisdocumentexpresslyacknowledgeshavingreadandacknowledgedthecontentofthisDisclaimer.ThisdocumentwaslasteditedFebruary19,2009.
© 2009 Fourth Screen Incorporated ApS.
AN OVERVIEW, of , a mobile money services suite.
MONEY TALKS
© 2009 Fourth Screen Incorporated ApS 3
“Momentumisbuildingbehindmobilefinancialservicesandwebelieve2008willbeaseminalyearforthisexcitingnewsector.”
RobConway,CEOboardmemberGSMA.
© 2009 Fourth Screen Incorporated ApS.
© 2009 Fourth Screen Incorporated ApS 4
FourthScreenInc.ApSisatechnologycompanyestablishedinlate2005,focusedonthedevelopmentofservicesandmediaforthemobilemarket.Thecompanyoriginallyfocusedonthreekeyareas: Licensinganddevelopmentofmobilevideocontent Thedevelopmentofaflashmemory‐basedmobilecontentdistribution
platform Thedevelopmentofanadvertising‐supportedcontentdeliveryplatform
formobilecontentFourthScreenhaspartneredwithkeyplayersinthemobilesector,includingNokia,DangaardTelecomm,andKingstonTechnologies.Onthecontentside,thecompanyhasworkedwith,amongothers,theBBC,Zentropa,andmobileoperatorTeliaSonera.AstheCompanydevelopeditsknowledgeandexperiencewithinthemobileservicesmarket,itidentifiedagreatbusinessopportunityforthedevelopmentofamobile‐basedsystemtofacilitatemobilemoneytransfers.Overthecourseof2008,thecompanyfurtherdevelopedthisideaworkingwithanumberofkeypartnerstodevelopamobilepaymentplatform,whichwecall .Thetechnologyplatformbehind isbeingdevelopedaftertheexperiencesofaproductteamwithanaverageof5yearsdevelopingandimplementingmobilepaymentsolutions.Theplatformitselfsupportsallmobilenetworksandhandsets,andincorporatesthehighestsecuritystandardsintheindustry. ‘splatformismeanttobeanopenservicebuilttoappealtomobileoperators,users,banks,moneytraders,andothercommercialpartnerslookingforaMobileMoneyTransfer&PaymentsPlatform(MMT&MPP).Moreimportantly,thecompanyseestheproductasatoolwithvastpotentialinhelpingexpandfinancialandmobileservicestoalargenumberofpeoplewhotodayaremarginalizedtotheseandthebenefitsthattheycanprovide.ItisthefirmconvictionofFourthScreenthatcanbecomeahighlyprofitablebusinessandsocialdevelopmentinnovator,bybuildingasimple,elegantsolutionthatcanputthepowerofmoneyintothehandsofmillionsofpeopletoday.
INTRODUCTION.
© 2009 Fourth Screen Incorporated ApS 5
“Thebrickandmortarbankbranchsystemcanonlygosofar.Withcellphoneserviceandalocalshophandlingthecash,mobilebankingcanreacheveryvillageandbarriointhedevelopingworld.
Technologycanenableustoreachmillionsofpoorpeoplewho,untilnow,havebeenleftoutoftheformalfinancialsystem.”
ElisabethLittlefield,CEOCGAP
© 2009 Fourth Screen Incorporated ApS 6
KEEP IT SIMPLE.
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Usingeverydaytechnologytosolveeverydayneeds.
© 2009 Fourth Screen Incorporated ApS 8
InQ22008,worldmobileconnectionssurpassed3.6billion,adding165millionconnectionsinthelastquarterandtwothirdsofabillionoverthelast12months.
Thisrepresents55.3%penetrationbypopulationandannualgrowthof22.1%.AsofFebruary,2009,wehavesurpassed4billionmobileconnections.
GSMA Quarterly World Review: Q3 2008
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n2009mobilephonesareeverywhere.Insideyourpocket,yourspouse’spurse,inyourchild’s(or
nephew’s)hand.
Andhereistheinterestingpart.
Theyaretrullyubiqutous.
Unlikeothergadgets,mobilephonesareusedbyeveryoneandtranscendthenormalbarriersofclass,geography,andculture.
Theyareusedeverywherewherepeoplearefound.Fromthelargestmetropolis,tothemostremotevillages,peopleusetheirmobilephoneslikenootherdevicebeforeorsince.
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IT’S IN YOUR POCKET.
10© 2009 Fourth Screen Incorporated ApS. © 2009 Fourth Screen Incorporated ApS.
snotoverrated;quitethecontrary:Inthemobilespaceitiscrucialforsuccess.I
ALL THUMBS.
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egardlessoftheconstantadditionsoffunctionssuchascameras,GPS,musicplayersandotherdevelopments
gearedtowardsturningthemintotheSwissArmyKnifeofmoderndevices,studieshavefoundthatmobilephonesaremostlyusedfortwothings:talkandtext.
Butoverwhelmingly,phonesareusedtotext.
Everyminute,everyhour,everyday.
People…
text.
R
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fyouhaveaphone,youtext.Youalsousemoney,butnotalwaysabank.txtMoneyisamobileservicethatallows
anyonewithamobilephoneaccesstomoneyandfinancialservicesonthegoviathetextfunctionofanymobilephone/device.
isasuiteofservicesthatcanprovidefasteraccesstotheirmoneyandbankingservicestothe“banked”,whileopeningaworldofopportunitiestomillionsof“un‐banked”peopletheworldover.
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WithtxtMoney,youcan:
1. Sendandreceivemoneyfromtoanymobilephone.Anywhere.
2. Usea“mobilewallet”to“topup”servicesandaccountsusedonaregularbasis(likeutilities,phonecard,insurance,andmanyothers).
3. Beusedforbranchless,mobilebanking,meaningyoucanmakebalanceinquiries,obtainstatements,transfermoniesbetweenaccounts,andmuchmore.
© 2009 Fourth Screen Incorporated ApS.
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sthemostprofitablem‐moneyserviceavailable,remittances,1arekeytorealizingthepotentialof
txtMone.
Recognizingthis,theservicewillbemarketedandsupportedthroughanetworkofpartnerssuchasremittanceservices,mobileagents,MoneyTransferOperators(MTOs),MicroFinanceInsdtitutions(MFIs),andotherbusinesstargetingmigrantworkersandtheunderbanked.2
Thepartnernetworkwillbeusedtosigncustomersintotheserviceasperinternationalremittanceregulations.OnceacustomerissignedinintotxtMon’,sendingmoneyanywherewithinthenetworkisnotcomplicated.
Aftersigningupforanaccount,allittakesisforacustomertosendatextmessage.Andthemoneyistransferredhandset‐to‐handset.Anywhereintheworld.Instantly.3
A
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MOBILE REMITTANCES.
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TOP IT UP.
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hefundsavailablethroughtxtMoney‘smobilewalletsystemcaneasilybeusedforreplenishingor“topup,”
credittoanyaccountsubscribedtothesystem.4
Thisfeatureisparticularlyattractivetotheunderbankedandforpeopleoflimitedmeansandinremoteareaswhocanavoidwastedtime,transportcosts,securityrisks,andotherexistinghindrancesinthepaymentofmanybasicservices5.
Naturally,thesystemcanbeusedforallformsofpaymentofservicestoanyonewithamobilephone.
T
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WithtMoney‘smobilewallet,customerswillbeabletocheckbalances,transferfunds,ormakepaymentsfromamobilephoneusingatext‐basedsolutionwhichavoidscommonchallengessuchasmultiplemenu’sthataddcomplexitytotheservice,OSdevelopmentandsignature,andadaptingtovariousscreensizesandresolutions.6
Money‘splatformisdesignedtoworkunderseveralmulti‐languagemodules,andtomarketedtoreachtheun‐banked(orunderbanked)massesinthedevelopingworld,wheredistance,costoftransportation,andsecurityhavecontributedtomarginalizemillionsfromaccestofinancialservices.7
BRANCHLESS BANKING.
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YourbalanceisUS$29.Thankyou.txtMoney
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heproductisbeingdevelopedasabrandedservicesuitethatcanbesoldasastandalonemobileremittanceservice(through
scratchcardsandtopupterminalssuchascashiersatconveniencestores),orasamobileservicethat“powers”m‐moneyremittancestoMTOpartnersinthemarket.TheservicewillbeinitiallymarketedtomigrantsintheUSasanalternativemodetootherremittanceservicesalreadyinthemarket.Signupofcustomersintothesystemwillbedonethroughanetworkofagentsthatarealreadysellingremittanceandmobileservicesandsubscriptions.AFEEWILLBECOLLECTEDPERREMITTANCE,WITHAPARTOFTHATFEEBEINGPAIDtotheagentsforsigningupcustomersintotheservice.Aftersignatureintothesystem,payment/transfer/currencyexchangewilltakeeffectviatheuseofexistingserviceprovidersforsuchservices.Atpayoutpoints,txtMoneywillusetheexistingnetworkofpayoutpointsavailablethroughtheserviceprovider’snetwork.Inaddition,workingwithMFI’sandinconcertwithserviceprovidersrequiringregularpaymentcollection(utilities,telephone,schooling)txtMoneywillencouragetheuseofitsm‐walletforpaymentandpurchaseofgoodsandservices.COLLECTINGAFEEPERTRANSACTIONFORTHESERVICE.
T
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BUSINESS MODEL.
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Keytodeveloptheproductwillbethealliancewithpartnerswithastatedinterestinservicingtheunderbanked,aswellasworkingwithcompanieslookingtoextendtheirserviceofferingstonewmarketsegments.AlsoofnoteisthefactthatthecurrenteconomiccrisisandthesignificantshrinkageofinvestmentinITbyprivateenterprise,8whichinitselfopensgreatopportunitiesforthemarketinganddevelopingofabrandedserviceformobilefinancialservices.Onthisvein,thecompanyalsoplanstoexploitthesellofWHITELABELsystemsbasedonourplatformforcustomerssearchingtodrivetheirownmobilepaymentservices.Allofthealliancesunderlinedherearebeingdevelopedwithaneyetowardspartnerswithexistingdistribution/marketinginfrastructureswithinthetargetmarket.ThecompanyhasselectedtheUS/MéxicoandLatAmcorridorsasitsfirsttargetregionfortheproduct.
STRATEGY.
© 2009 Fourth Screen Incorporated ApS.
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Thecompanyhasidentifiedandbeenin contactwithanumberofkeypartners:BancomerTransferServices(BTS).AcompanyofBBVAUSA,theleadingcompanyinthemoneytransferandconsignmentofmoneybusinessfromtheUnitedStatestoMéxico.BBVAdistributionagreementsforitsserviceswithhundredsofinstitutions,amongthemWellsFargo,MoneyGram,andtheUnitedStatesPostalService.In2008,BTSprocessedmorethan45%ofthemoneyconsignmentsfromtheUnitedStatestoMéxico.cruz/kravetz:IDEAS.andTerrySoto.Cruz/kravetz:IDEASisanindependentagencyfocusingontheUSHispanicmarket.Itoffersexpertbrandplanning,creativedevelopment,mediabuying,salespromotion,publicrelations,anddirectresponse.TerrySotoisPresidentandCEOofAboutMarketingSolutions,Inc.(AMS),aCalifornia‐basedmanagement‐consultingfirmalsospecializedintheU.S.Hispanicmarket.PriortofoundingAboutMarketingSolutions,TerrywasManagingPartneratcruz/kravetz:IDEAS,whereforovereightyearsshemanagedclientssuchasHarrisBank,MoneyGram,KraftFoods,CampbellSoupCompany,ElPolloLoco,Lincoln‐Mercury,MexicanaAirlines,PennzoilMotorOilandothers.cruz/kravetz:IDEASandTerrySotowereinstrumentalindevelopingandimplementingthemarketingstrategyusedbyBTSwhichresultedinitbecomingthedominantplayerintheUSremittancesmarket.InterAmericanDevelopmentBank(IASB):TheIDBprovidessolutionstodevelopmentchallengesin26countriesofLatinAmericaandtheCaribbean,partneringwithgovernments,companiesandcivilsocietyorganizations.TheIDBlendsmoneyandprovidesgrants.Italsooffersresearch,adviceandtechnicalassistancetoimprovekeyareaslikeeducation,povertyreductionandagriculture.Ourclientsrangefromcentralgovernmentstocityauthoritiesandsmallbusinesses.TheBankalsohasanestablishedfundforinvestmentinthedevelopmentofmobilebanking.
© 2009 Fourth Screen Incorporated ApS.
POTENTIAL PARTNERS.
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ConsultativeGrouptoAssistthePoor(CGAP).CGAPisanindependentpolicyandresearchcenterdedicatedtoadvancingfinancialaccessfortheworld'spoor.Itissupportedbyover30developmentagenciesandprivatefoundationswhoshareacommonmissiontoalleviatepoverty.HousedattheWorldBank,CGAPprovidesmarketintelligence,promotesstandards,developsinnovativesolutionsandoffersadvisoryservicestogovernments,microfinanceproviders,donors,andinvestors.TheBill&MelindaGatesFoundation.Leadingglobalphilanthropicfoundation,whichrecentlyannouncedafundtopromote/financeM‐bankingsolutionstothepoor.TheGlobalSystemforMobileCommunicationsAssociation(GSMA).TheGSMArepresentstheinterestsoftheworldwidemobilecommunicationsindustry.Spanning219countries,theGSMAunitesmorethan750oftheworld’smobileoperators,aswellas200companiesinthebroadermobileecosystem,includinghandsetmakers,softwarecompanies,equipmentproviders,Internetcompanies,andmediaandentertainmentorganizations.TheGSMAhasestablishedaMobileMoneyTransfer(MMT)programtopromotestandards,leverage,anddevelopmobiletechnologiestouseformoneytransferandmobilemoneyservices.
© 2009 Fourth Screen Incorporated ApS.
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Formoreinformation,pleasecontact:EduardoCelisMediaDirectorFourthScreenInc.ApsAmerikavej12,[email protected]@mplus‐store.commobile:+4523446160skype:ecrojotxtMoneyisagloballyscalable,mobilemoneyservicesuitewhichworksonanymobilephoneusinganymobilenetwork.
THANK YOU
© 2009 Fourth Screen Incorporated ApS.
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Anumberofarticles,whitepapersandpublicationshavebeenusedinthedevelopmentoftheconceptsbehindthisdocument.Thearticles,infullarepostedon‐linehere.
Specialcreditforkeyinformationandmaterialusedasarefferenceandasconfirmationoftheconceptsdevelopedhereingoto:
IgnacioMasandKabirKumaroftheTechnologyprogramatCGAP.AswellasRobertW.Meins,oftheIDB.
ImportantNotice:Alltrademarks,refferencedata,logos,andothercopyrightsremainthepropertyoftheirrespectiveownersandarebeingusedorpostedasrefferencedmaterialsonly.
REFERENCE ARTICLES.
© 2009 Fourth Screen Incorporated ApS.
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BANKING TODAY MAY BE ABOUT MONEY, BUT THE FUTURE OF BANKING IS ABOUT PEOPLE.
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1Remittancesareoneofthemostexpensive(fromthecustomerside)moneyservicesavailable.Highlyprofitableforthebusinessinvolved,theyhavesufferedasignificantreductioninrecentfees.However,theWorldBankestimatesthatfurtherreductioninfeesandcostscoulddramatically,increasevolumeandprofitabilityforremittances.2TargetMarket&StrategicPartners.Atit’sbasiclevel,txtMoneycanbeseenasaservicedevelopedtoprovideakeybasicservicetomillionsof“underbanked”people.Whilethesolutionwilldifferentiateitselffromotherservicesbyreducingcostsatasignificantmarket(afactwhichrecentreportsfromGSMandCGAPunderlineascrucialforthesystemtosucceed),thestrategyistogrowtheservicethroughattractingtheunderbankedtotheuseofitsmobilewalletsuite.Formoredetailsofpartners,seepages24,25formore.3“Instanttransfer”intermsoftheproduct(remittances,balance,inquiries,etc),largelydependsonnetwork/serviceprovidersettings,aswellasindividualarrangementswithMTO’sandpaymentprocessors,however,thesystemprocessesthetransactioninseconds,andinthevastmajorityofcases,thetransactionstakelessthanaminutetoprocess.4PaymentofServicesviamwallet.BasicallyanyservicethatacceptspaymentviacreditcardorbankingsystemstheworldovercanbeprocessedviatxtMoney’sm‐wallet.Akeyideahereistheassimilationofasmanybusinessandservicesintoacceptingandpromotingthemobileplatform,whichshouldnotbeverydifficult,astherearemanyadvantagestopaymentrecipientstousetheserviceoverotheralternatives.5Transport,Security,andotherissuesfacedbythe“underbanked”andmillionsofcitizensinthedevelopedworldarearesultofstructuralandsocialconsiderationsthatdonotexistinthedevelopedworld.Forexample,inMexicobandsofcriminals,workingwithinsidemen,areknowntohitbanksandindividualsforrobberyastheymaketheirwayoutofabank,orfromreceivingcashfromremittances.Inaddition,accesspointstoATM,banks,andpublicserviceofficesarelimitedandremotetomanythroughoutLatinAmerica.Amobilewalletsolutioncangoalongwayindiminishingmanyoftheseobstaclesanddangerstotheaveragecustomer.6TXTbasedsolutionvs.SoftwareofSIMMbasedalternative.IncontrastfromPCs,wherethereisonedominantoperatingsystem(WindowsOS),mobileplatformsarefarmorecomplicated.TherearemanymobileOSsinthemarkettoday:Symbian,iPhoneOS,RIM(blackberry),WindowsMedia,PalmOS,Linux,andJ2ME,buttonameafewleadingplatforms.Inaddition,whilesomerecentreportsprojectthatby2010therewillbeover2.1billionPCsinthemarket,thereare3.1billionmobilephonesoutinthemarkettoday.Sofacedwiththatscaleofachallenge,thebestalternativeistodevelopanapplicationrunandmadefortexting,whichusesauniversaltechnologicalthread,regardlessofmobileOS.ThesameargumentworksagainstSIMcardbasedsolutions,in‐phoneresidentapplications,andcarrierexclusive(orhandsetexclusive)applications.7VirtualAccess.Asnotedpreviously,manyinherentfactorsoflifeinthecountriesoftheSouthernhemisphere,arerealhindrancesforlargesegmentsoftheirpopulations.Providingavirtualspacefromwherepeoplecanaccesstheirmoneyisakeyadvantagethatm‐bankinghasoverothertechnologies.8InvestmentinITbytheprivatesegmenthasbeenreduceddramaticallyoverthelasttwoquarters.Thisdrophasbeendramaticinthebankingsegment,whichshoweditsbiggestdropinthepastyearinadecade.
END NOTES