OTC FACTS, FIGURES AND IMPLICATIONS
ACROSS MARKETS
ANALYSIS OF REGISTERED AND
UNREGISTERED MOBILE MONEY USERS
IN FINANCIAL INCLUSION INSIGHTS COUNTRIES
OTC
FIVE THINGS TO KNOW ABOUT OTC
1.
Over-the-counter (OTC) transactions are a larger portion of mobile money use in newer mobile
money markets, and a lesser portion in the more mature markets.
2.
OTC can be a gateway for registered use; it is common for users to first have unregistered
transactions before formalizing the account.
3.
A customer uses OTC out of a desire for assistance and lack of perceived need for a registered
account.
4.
Unregistered and registered account holders make similar types of transactions, but frequency
varies. Mobile money usage is lower for OTC users vs. registered account holders.
5.
There’s greater OTC usage among younger and less educated consumers. Gender differences
are more pronounced in rural areas and by income.
Note: This report reflects 2014 research conducted as part of the Financial Inclusion Insights program in the following
countries: Bangladesh, India, Indonesia, Kenya, Nigeria, Pakistan, Tanzania and Uganda.
2
OTC
MARKET IMPLICATIONS
OTC may not be a long-term component in the marketplace. If markets with lower mobile money
penetration follow the direction of more mature markets, OTC use may give way to registered
use. Therefore:
1.
Can we make mobile money use easier:
–
2.
3.
Usage of OTC in the emerging markets suggests a need for assistance with utilizing a mobile money
service, and, therefore, can be interpreted as an access channel to the mobile money experience.
Can we better explain the registered use value proposition:
–
With a lack of perceived need, combined with the desire for assistance, the challenge becomes
converting a “do it for me” OTC behavior into a “do it yourself” registered account.
–
Here, the market may have to convey that registered use is for everybody, despite frequency and
reason for usage.
Can there be a higher touch option for registered use?
–
Some groups will be harder to register. Younger, less educated groups, and poor/rural women might
require more of a perceived need to get a registered account, as well as assistance, as they are the
most likely to utilize OTC.
–
For those higher barriers, such as social or educational factors, a middle path might be found with
actions like agent-assisted registered transactions.
3
OTC
Kenya leads mobile money usage, with other African countries a distant
second; Nigeria and parts of Asia trail behind
Mobile money (MM) users
(Have you ever used this [country specific] mobile money service for any financial activity?)
73%
44%
Despite
early
entrance,
MM use in
Indonesia
lags due to
government
policies.
43%
23%
8%
1%
Date of market
entrance
Number of
active providers
.3%
0%
Kenya
Tanzania
Uganda
Bangladesh
Pakistan
Nigeria
India*
Indonesia*
2007
2010**
2009
2010
2009
2011
2011
2007
4
4
4
2
8
12
14
6
* Provisional Data
The number of mobile money users in Nigeria, India and
Indonesia is too small to analyze by OTC usage.
** Initial entrance in 2008 was unsuccessful.
Source: InterMedia FII Tracker surveys Wave 2, 2014.
4
OTC
As markets mature, OTC transactions drop as a percentage of mobile
money use
Kenya
Mobile money
(MM) usage
(Have you ever used this
[country specific] mobile
money service for any
financial activity?)
27%
73%
Tanzania
56%
44%
Uganda
57%
43%
Bangladesh
Pakistan
77%
92%
23%
8%
MM User
Not an MM User
Registered vs.
unregistered users
(Do you have a registered
account?)
13%
14%
22%
77%
87%
Registered
Unregistered (OTC)
86%
78%
23%
96%
4%
Due to the low number of MM
users with registered accounts
in Pakistan, further analysis is
not possible.
Source: InterMedia FII Tracker surveys Wave 2, 2014.
5
OTC
Transacting via OTC could be a gateway to registered use, as it often
predicates a user opening an account
In Kenya….
24%
In Tanzania….
of those with registered
Airtel Money accounts
conducted mobile money
activities over the counter
prior to signing up.
In Uganda….
62%
19%
of mobile money account
holders (19% Airtel Money,
21% M-Pesa, 22% Tigo Pesa)
used OTC prior to
registering.
In Bangladesh….
registered for an Airtel
Money account only after
conducting mobile money
activities over the counter.
Source: InterMedia FII Tracker surveys Wave 2, 2014.
56%
of bKash users made a
transaction through an
agent at the same time or
prior to registering for an
account.
6
OTC
Even in Bangladesh, a top OTC market, there are signs of a
transition to wallets
Bangladesh mobile money (MM) use
(Shown: Total population, N=6,000)
22%
23%
19%
18%
5%
3%
Ever used MM
OTC MM use
Registered MM use
2013
2014
Source: InterMedia Bangladesh FII Tracker survey (N=6,000, 15+) Wave 2 June-August 2014.
3%
4%
Active registered MM account
use
OTC
Barriers to registration include lack of perceived need, desire for
assistance, and in Uganda, access to a point of service
What is the main reason you have not signed up for a mobile money account even though you are using the services?
Bangladesh
Uganda
(Shown: Percentage of unregistered mobile money users,
n=1,012)
(Shown: Percentage of unregistered mobile money users,
n=295)
I can have all the services through an agent, I
do not need an account
I do not need to, I do not make any
transactions
27%
19%
16%
Using such account is difficult
I prefer that agents perform transactions for
me, they will fix problems that arise
I do not see any additional advantages to
registration
I do not have a state ID or other required
documents
Agent can help me use the service/I do not
know how to use it on my own
I never have money to make a transaction
with such account
Fees for using such account are too high
I do not understand the purpose of this
account, I don’t know what I can use it for
I prefer to keep money in cash and use mmoney only to send/receive money
No one among my friends or family has such
account
11%
10%
10%
8%
6%
Registration fees are too high
3%
I do not have a state ID or other required
documents
I can have all the services through an agent, I
do not need an account
4%
3%
Fees for using such account are too high
4%
9%
3%
2%
2%
1%
1%
Registration fees are too high
0%
I have heard of fraud on mobile money
0%
There is no point-of-service/agent close to
where I live
I do not trust my money is safe on an mmoney account
I never have money to make a transaction with
such account
There is no point-of-service/agent close to
where I live
I do not see any additional advantages to
registration
0%
0%
5%
Agent can help me use the service/I do not
know how to use it on my own
I prefer that agents perform transactions for
me, they will fix the problems if anyting…
3%
3%
3%
Using such account is difficult
I do not need to, I do not make any
transactions
I prefer to keep money in cash and use mmoney only to send/receive money
I do not understand the purpose of this
account, I don’t know what I can use it for
1%
I have heard of fraud on mobile money
1%
I do not trust my money is safe on an m-money
account
No one among my friends or family has such
account
2%
2%
0%
0%
OTC
In Tanzania and Kenya, the lack of proper identification is, by far, the main
reason individuals have not signed up for an account
What is the main reason you have not signed up for a mobile money account even though you are using the services?
Tanzania
(Shown: Percentage of unregistered mobile money users,
n=191)
I do not have a state ID or other required
documents
I do not see any additional advantages to
registration
There is no point-of-service/agent close to
where I live
I can have all the services through an agent, I
do not need an account
I do not trust my money is safe on an mmoney account
2%
Fees for using such account are too high
2%
I never have money to make a transaction
with such account
I do not need to, I do not make any
transactions
Agent can help me use the service/I do not
know how to use it on my own
34%
5%
5%
4%
2%
2%
2%
Using such account is difficult
1%
I prefer that agents perform transactions for
me, they will fix problems that arise
1%
Registration fees are too high
1%
I do not understand the purpose of this
account, I don’t know what I can use it for
1%
I have heard of fraud on mobile money
1%
Kenya
(Shown: Percentage of unregistered mobile money users, n=291)
I do not have a state ID or other required
documents
I never have money to make a transaction with
such account
I do not see any additional advantages to
registration
2%
Using such account is difficult
2%
I do not understand the purpose of this account, I
don’t know what I can use it for
There is no point-of-service/agent close to where I
live
I do not need to, I do not make any transactions
I can have all the services through an agent, I do
not need an account
Agent can help me use the service/I do not know
how to use it on my own
43%
4%
1%
1%
1%
1%
1%
Registration fees are too high
1%
Fees for using such account are too high
1%
I have heard of fraud on mobile money
1%
I do not trust my money is safe on an m-money
account
I prefer to keep money in cash and use m-money
only to send/receive money
0%
0%
OTC
Younger and less educated are more likely to make OTC transactions
OTC usage by demographic group
(Shown: Percentage of mobile money users who do NOT have a registered account)
85% 88%
80%
74%
73%
92%
87%
Education
75%
55%
27%
11%
7% 6% 8%
Kenya
19%
14% 14%13%
11%
28%
28%
23%
19%
17%
19%18%
12%
3%
Tanzania
Uganda
Bangladesh
(n = 1,303)
(n = 1,245)
(n = 1,282)
(n = 2,300)
15-24
25-34
35-44
45-54
55+
Kenya
(n = 2,300)
25%
30%
18%
16%12%
22%
8%
4%
Tanzania
(n = 1,303)
No formal education
Uganda
(n = 1,245)
Primary
Bangladesh
(n = 1,282)
Secondary
Higher
10
OTC
Income and gender differences are not as pronounced on the national level
OTC usage by demographic group
(Shown: Percentage of mobile money users who do NOT have a registered account)
Gender
Poverty Line
86%
74%
82%
68%
Rural women and poor women are
even more likely to use OTC vs. men.
10%
16%
Kenya
12%
17%
Tanzania
Men
23%22%
Uganda
Women
Bangladesh
21%
8%
16%14%
22%
17%
Kenya
Tanzania
Uganda
Above
Below
Bangladesh
OTC
Registered and unregistered users’ activities are similar, including
withdrawals, deposits, transfers and top-ups
Number of mobile money (MM) activities
(Have you ever used a mobile money account to do the following…?)
Tanzania
Kenya
86%
70%
Withdraw money
Deposit money
56%
Receive/send money
P2P
47%
Buy airtime top-ups
Pay bills
44%
19%
8%
Saving money
16%
7%
MM transfers
16%
7%
Receive wages
8%
1%
Receive G2P
payments
2%
1%
Loans
4%
0%
Insurance
Uganda
1%
0%
(n = 2,300)
73%
88%
66%
46%
66%
24%
19%
9%
9%
3%
92%
72%
71%
35%
Bangladesh
94%
59%
76%
34%
33%
54%
13%
50%
1%
11%
2%
1%
1%
13%
0%
0%
0%
15%
1%
0%
7%
1%
2%
0%
3%
0%
6%
2%
0%
0%
2%
1%
3%
2%
2%
0%
1%
0%
1%
0%
1%
1%
1%
1%
0%
0%
1%
0%
(n = 1,245)
(n = 1,282)
(n = 1,303)
60%
40%
43%
72%
73%
63%
79%
Registered
Unregistered (OTC)
12
OTC
Registered users try more types of mobile money activities vs. unregistered
Usage by number of activities
(Have you ever used a mobile money account to do the following…?)
Tanzania
Kenya
Uganda
80%
3+ Activities
3
2
1
2
2
74%
41%
4
4
5
Average number of
activities
93%
69%
65%
5
3
11%
89%
71%
31%
40%
45%
91%
Median number of
activities
76%
71%
54%
2+ Activities
Bangladesh
2
5
4
2
3
2
Registered
Unregistered (OTC)
(n = 2,300)
(n = 1,303)
(n = 1,245)
(n = 1,282)
13
OTC
The number of recent transactions is also greater for registered users; OTC
transactions are limited
Registered/unregistered monthly median mobile-money usage
(In the past 30 days, how many times did you use a mobile money account for such financial activities?)
6
 Registered users conduct financial
activities five to six times a month while
OTC users conduct up to two
transactions monthly.
6
5
2
2
1
1
0
Kenya
Tanzania
Registered
Source: InterMedia FII Tracker surveys Wave 2, 2014.
Uganda
Bangladesh
Unregistered (OTC)
14
For more information, contact:
Colleen Learch, Director of Research
[email protected]
Nathaniel Kretchun, Associate Director
[email protected]
Ron Cohn, FII Program Lead
[email protected]