1. No category

How to get the informal sector to switch
from cash to mobile money?
Yaron Assabi
[email protected]
Hidden Agenda
 Why consumers want mobile
service at lower fees and with
personal benefits based on
usage
 Cash is not king, it is dangerous bad for the environment and
expensive
 Mobile: the ideal platform for
micro-payments
 Relevant technology can change
behaviour
 Small change to make a big
difference
DSG Experience
Digitalmall.com founded in September 1998 as a technology partner
for retailers who wanted to create a new channel to market via ebusiness.
In December 1999 we sold a 51% stake to iTouch prior to their IPO
on the FTSE .
iTouch wanted to enter the mobile commerce market and we wanted to
expand internationally .( iTouch was in turn owned by Independent News
and Media at the time and delivered mobile content)
In March 2000 we launched the 1st mCommerce transaction in SA on
mywap.digitalmall.com on Radio 5 ( Doctoza –Accenture)
Soon thereafter we launched in UK , Ireland , Australia , NZ ,and
Israel .
Although we were first to market and the IPO was very successful
(₤42.5 million for 20% of group) the market crashed and as the share
price lost value we decided to do a MBO in November 2001 and
refocused our business on Africa .
As our customers’ required new solutions and the market dynamically
changed so has Digital Mall’s business model which led to the innovative
evolution of what is known today as, The Digital Solutions Group.
DSG Experience
In 2001 we launched a multi -channel commerce solution for
Ster- Kinekor including first mobile ticketing.
In 2003 multi -channel communication solution for the IEC for
2004 /2005 Elections and won an innovation award for service
delivery within government– ATM , IVR ,SMS , Web , Email and
Contact Centre ( 11 official languages) This was the first Mgovernment deployment
In 2004 we launched the first and only gambling board
approved mobile betting application in SA for Phumelela for
Horse Racing Soccer ( best B2C m-commerce application Vodacom
Mobile Connect 2004)
In 2005 first SMS donation platform with text to screen for 46664
Over R2 million raised to date
DSG Experience- Mobile Financial services
 In 2004 we launched the first financial mobile application for
TransUinion Mead & McGrouther . We created the first e-book
on mobile “ The car dealer guide “ which is the bible of the
industry was outdated by the time it was printed and we made
an electronic version of it with value adds such as a “finance
calculator “. We are upgrading this application currently for all
Smartphones.
 In 2006 we conceptualized and designed the proof of concept
for Investec Private Security Clients – Mobile Ticker

In 2007 we conceptualized Hippo with Telesure the first
insurance aggregator service that delivers multiple insurance
quotes based on customer needs via web and mobile .
 In 2011 we are building mobile apps for Discovery .
DSG M-Vouchers
In 2007 1st M-Voucher for QSR for Nando’s= Assegai Award for best mobile
marketing campaign
SMS to rate our service “best customer experience award 2008 “
DSG designed and managed over 3,000 mobile marketing campaigns in the
past 12 years and won numerous innovation awards
Flexible Engagement Model
Consulting – Outsourcing – SAAS or Managed Services
DSG Strategic Focus
 Seamless, MNO or Corporate
Customer branded solutions
linking devices to the customer
services platform
 Services that are competitive with
the ecosystems but offering broad
device coverage
SERVICES
3rd Party
Network
Aggregators
Portal
 Value for customers:
APIs
 Increased sales
 Branding/customer
mindshare
 Customer insight
 Lower cost of service via
Web UIs
m-self service
8
Mobile Development Partnerships
Unbanked Opportunity
Mobile is the ideal platform for micropayments
 Mobile Networks cover most populated areas and therefore are ideal for
enabling mobile commerce and payments
 Pre Paid wallet is equivalent to a current account
 It is easier to top up airtime remotely and keep currency electronically vs.
cash.
 A Mobile network is designed for micro billing ( per second billing )
whereas credit cards R15 minimum transactions.
 The world is moving towards pay per use –” 20p to use the toilet at
Paddington station “ – what happens when you do not have change?
Prefer Mobile Phone over Wallet?
 The banking and credit card industries
have noticed that it takes an average of
26 hours for a user to (notice and) report
a lost wallet. Yet if you lose a mobile
phone, the average time to report it is 68
minutes.
Mobile Money
 Mobile Networks cover most populated areas and therefore
are ideal for enabling mobile commerce and payments
 Pre Paid wallet is equivalent to a current account- very little
credit card penetration in Africa which is an opportunity for
the MNO ‘s to take the lead in Mobile App Eco System
 It is easier to top up airtime remotely and keep currency
electronically vs. cash.
 A Mobile network is designed for micro billing ( per second
billing ) whereas credit cards R15 minimum transactions.
Most Apps
 The world is moving towards pay per use –” 20p to use the
toilet at Paddington station “ – what happens when you do
not have change?
Market Overview- $151 billion by 2012
How Mobile is changing shopping ?
Pay by Phone and control your eco foot print
16 | Touchatag |August 2009
Mobile Lifestyle
“Give people more control over their
banking and you’ll win their loyalty. That’s
because mobile is not a channel so much
as a way consumers live their lives and
consequently, the way banks have to
conduct their business.”
Douglas Brown
Senior VP Mobile Product Development
Bank of America
Critical Success Factors
 The informal business sector is primarily cash based across Africa
 Mobile Money integration and mCommerce is not easy for a merchant and
therefore should be simplified via software that gives access to multiple
payment options or CSP ( Commerce Service Provider) $5&11#-$F)&1$"1)#($&-#$."*34$&3.$()"/?.$1)&1$0)&34#)'8$F)'$3"1G
 On Device App that is cross platform ( we are starting with Android only)
 Security , Device Management and remote wiping
 Vertically focused app for SME providing the same service as a standard POS
but on the mobile device with smart SaaS based features & reporting
 Usability & Quality Management
Sample Screen Shots
Mobile Payment Processing
Accept credit, debit, mobile money & stored-value cards in the field
Software only solution – no card-swipe hardware required
Card information entered onto SmartFORM™ on the handset
Immediate authorization
Mobile receipt printing can be made available (Bluetooth® printer
required)
Compliant with highest levels of industry security standards
Eliminate cash from the system
Customer Benefits
Reduce Expenses
 Complete more transactions per day
 Complete transactions quicker
 Reduce mPos costs
 Ensure accuracy
 Eliminate paper-based reporting
Increase Cash Flow
 Increase market share, customer service & revenue
 Optimize inventory levels
 Increase revenue per merchant
 Faster & more accurate invoicing
Improve Safety/Security
 More affordable
 Faster response times
Security
 Security is always a consideration when implementing a POS solution.
 The primary concerns are employee access to registers, adherence to security
standards, & securing the saved transaction record in the database through
compliance with data protection standards.
 When migrating to a mobile POS environment, the concerns are the same.
 The mobile device will operate within a mobile data network so capturing
customer payment data and transmitting using 3G network is inherently risky.
 The Payment Card Industry Data Security Standards (PCI-DSS) have specific
provisions and additional processes that must be implemented in order for a
retailer to be allowed to mobile payments .
 The connection should use strong encryption through HTTPS and should
adhere to the PCI-DSS standard protocols to manage the transaction.
 Merchant / Employee authentication to the mobile device should be robust and
tracked through to the transaction level.
 Once the transaction is complete or cancelled, the system should delete the
transaction record from memory only available on SaaS environment for recall.
DSG partners with Adaptive Mobile
The world leader in mobile security
Comprehensive proven network protection
Enabling a safe and trusted mobile experience for
consumers and enterprises worldwide
23
The changing face of mobile security in 2010
iPhone+Android
BotNet PoC
Hack Royal
Bank of
Canada
Android
Malware App
Droid09 Banking
JAN
FEB
iPhone
Jailbreak OTA
Threat
MAR
iPhone
In-App Premium
Rate Calls
SMS Smishing
For Banking details
APR
Blackberry
SMS Snooping App
MAY
JUN
iPhone
Banking App Flaw
JLY
Android
Trojan Infected
Music Player
AUG
Privacy Risks
In Application
Analytics
SEP
Fake Mobile AV
App Widespread
China Infection
OCT
Android
SMS Replicator
Spyware
24
NOV
DEC
The value of a trusted network
Corporate
Security As
A Service
New
demographic
segments
When your
subscribers
have control
over their
network
Secure
M2M
Enablement
NEW
BUSINESS
MODELS
Protection
of vulnerable
users
NEW
SUBSCRIBERS
When you
comply with
regulation
Protection
against
network
volatility
New Service
& Content
Adoption
When your
subscribers
can trust what
they are
charged
Trusted
Network
s
When your
network has
control over
the traffic it
carries
When your
network is
trusted by
other
networks
Isolation of
infected
devices
Growth of
mobile
payments
Retained
customer
prepay
balances
NEW
TRANSACTIONS
Transfer
Settlement
control
Lock down
content
revenue
leakage
The DSG/Adaptive Mobile Difference
Network
Network
Network
INSIGHT
PROTECTION
REVENUE
Threat Analysis
Multi bearer Security
Parental Controls
Threat Reporting
Fraud Controls
Enterprise Controls
Reputation Profiling
Content Controls
Personal Controls
Regulatory Retention
Usage Policies
Premium Content
Protection
Adaptive Mobile Customers
Global Customer base
Protecting over 600 million subscribers worldwide
© Copyright 2011.
27
What customers want?
CONFIDENTIAL
28
Mobile Cloud
As mobile devices have limited storage and
processing capability, cloud applications for mobile are
critical.
Mobile has been using the cloud for decades, ever
since Telco’s began offering voicemail.
We see opportunities for storage, music and video
services, VPN access to desktop, and business
applications for field workforces. Enterprise -full range
of solutions for field and remote works leveraging a
SaaS ( Software As A Service) model .
Unified communications for SME and applications in
the areas of sales force management, document
management, CRM and other enterprise applications
will become viable over their phone once carriers can
guarantee QOS ( Quality of Service) .
On Demand Delivery
It will be
increasingly
important for
businesses to
focus on ways to
unlock
innovation
http://www.flickr.com/photos/62586822@N00/3852562268/
Base of Pyramid Text Apps
 Easy to install &
compatible with any JAVA
enabled device
 User friendly as opposed
to USSD or short code
commands
 Customer will migrate to
WAP over time
Benefits of J2ME Text apps
Shorthand’s TextApp Platform enables operators to rapidly launch popular, branded
SMS content and operator services at a very low cost, helping expand existing
subscriber base, increasing ARPU and reducing churn.
 Increase ARPU
– Monetize incremental SMS messaging.
– Increase VAS revenue via improved service
discovery and ease-of-use.
 Reduce churn
– Increase customer satisfaction by
enhancing handset utility.
– Maximize stickiness with simple recharge
and account status notifications.
 Create new SMS revenue streams
– Recurring revenue from new subscription
services
– Drive discovery of operator services and
deliver through powerful ad/promotional
channel
 Reduce customer service costs
– Simple, intuitive client UI reduces call center
requests.
 Improve market share
– Offer premium content on mass-market
handsets in a user-friendly manner – no
data plans needed.
– Offer Apps for popular brands that appeal to
many market segments.
• e.g. payments, local search, food, social
networking, etc.
 Capture detailed tracking metrics and
analytics
– Monitor user behavior and usage activity.
 Lead users towards data adoption
– Shorthand provides various options to link to
the mobile web browser.
33
Business Value
Real-time knowledge
Targeted advertising
Enhanced brand loyalty
Know your customers
Know their problems
Proactive help where needed
Know your customers
Know their preferences
Give them more of
what they want
Why customers leave?
They don’t leave because
there’s a compelling reason to
leave.
They leave because there’s no
compelling reason to stay
Mobile Loyalty and Rewards
Use phone camera to scan image and see discounts
37 | Touchatag |August 2009
Cross Platform –Common API’s
Deliver web applications to any device
Reach the maximum number of users
Regardless of their choice of device
Browsing, Messaging, Clients, USSD…
Mobiles, PDA’s, PC, Games Consoles…
With minimum effort
Adopt a “Write Once, Deliver Anywhere” strategy
Standards based integration – W3C DIAL (XDIME)
Re-use branding templates across multiple systems
Automated support for new devices
With high quality user experience
“Optimize Up” to the capabilities of each device
Take advantage of latest device capabilities
Graceful fall-back for older devices
Use device knowledge within applications e.g. don't offer
video if the phone doesn't support it
38
Background
 DSG Secured exclusive rights for Africa , Middle East & Indian
Ocean
 US-based company with global presence that provides a full range
of software testing services to customers of all sizes
 Provides real-world, “in-the-wild” testing services for web, mobile,
and desktop apps
 Utilizes a global community of professional software testers
 Not a traditional QA outsourcing or off-shoring company
 Act as extension & complement to in-house QA activities
Some customers
40
Crowd -sourcing usability
Testing types – Mobile, Web, Desktop
 Exploratory
 Functional
 Usability
 Hybrid-load testing
 Localization and internationalization
Real-world coverage – broad matrix
 OS/Browser/3rd Party Apps
 Location-based
 Language-based
 Handset maker, model and wireless carrier (for mobile)
 “In-the-wild” testing vs. “In-the-lab" testing
Consumer & SMB-facing applications
 Web, Desktop and Mobile
It is all about EXPERIENCE