Egypt Digital Ecosystem for Financial Inclusion

Transcription

1 Egypt Digital Ecosystem for Financial Inclusion Empower citizens to contribute to the formal economy via electronic and mobile payment channels MasterCard s Open-loop network connects all stakeholders to a global Web of opportunity. PAGE 1

2 2016 Mastercard. Proprietary and Confidential The Process of Inclusive Growth Ensures all segments of society are able to reap the benefits of economic growth Financial inclusion is an important driver of inclusive growth but it is not enough PAGE 2

3 2016 Mastercard. Proprietary and Confidential Did you know. MasterCard Egypt Payment Ecosystem is the World 1st country-wide open loop solution that extends the usage of the mobile to become the personal payment tool in a simple, secure, convenient way for both banked and unbanked population. UKRAINE MasterCard s Core Operating Competencies Connect Payment Parties Together to create a cooperative and profitable value system for all participants Issuers Banked Consumers Bank-Centric Formal Financial Services Electronic payments replace cash payments as medium of exchange Unbanked Consumers Network Operators -Centric Informal Financial Services

4 2016 Mastercard. Proprietary and Confidential Egypt checks all the boxes for Payments Large population Significant unbanked population High mobile penetration Strong support from the Egyptian Government and Financial Institutions facilitating the creation of the digital ecosystems Partnership between all players (Public and Private) to Empower citizens to contribute to the formal economy via electronic and mobile payment channels 4

5 Enabling Banked and Unbanked Consumers to Manage Money According to Their Lifestyle Disbursements Payroll/ Benefits Top-Up Bill Pay POI Purchase Receive Money Family & Friends Sunsidies Money In How consumers receive money to fund their unique lifestyle needs Consumers Money Out How consumers spend money for their unique lifestyle needs Pay Family & Friends Transfer Money from Account POS Purchase Remote (P2M) Purchase Load Money Load Money at agent Load Money from card Money Management A safe value store for the consumer s funds and the ability for the consumer to be informed and in control of their money Pay Merchant Buy Online Local Purchase Cash Out at Agent Load Money at ATM Balance Query Activity Query Account Management Activity Alerts POS/ATM Alerts Cash Out Cash Out at Bank/MNO Cash Out at ATM

6 Egypt s ecosystem Use Cases benefiting banked, unbanked, Corp/SMEs and Gov. Robust turn-key outsourced solution drives complete set of financial services for both banked and unbanked. Leverage MasterCard well established rules, policy, and Settlement Services, and business model. Customized for Egypt in line with the CBE requirements Fully interoperable Wallet Providers Use Cases (Enabled by MasterCard) Send Money Load from card (AVL) Pay to Merchant E-Commerce (Online Card) Government Salary Disbursement To National ID Bill Payment MNOs Top up FMCG Collection Insurance Consumer Banks Open Loop Access International Remittance Universities Sport Clubs Agent (Cash in/out) Cardless ATM (Cash in/out) Gameya Transportation Aggregators Direct Billers Merchants Cash in/out Agents Government Payments Post Branch (Cash in/out) Microfinance Integrate other apps Empower Banks to acquire merchants, billers, aggregators, Gov services to maximize transaction and generate new revenue streams 6

7 Customers adoption to mobile financial services is growing exponentially 11 participants (9 banks and 2 Telcos) More than 5 Million Wallets 5 transactions / month per active consumer 12% of the total electronic transactions in 2017 Majority of consumers try the service once remain active for the subsequent months! Transactions # of Wallets x42 x e e MAY 7,

8 Did we hit the tipping point? close but not yet. There is potential to multiple active customer base and exploit the massive digital opportunities in the Egyptian market. Expand low-cost acceptance via mobile device and QR code enablement Unbanked consumer realize more ways & places to pay. Leverage common market infrastructure and Ecosystem Acceptance Encourage Inflows Bulk Disbursements Corporate Salaries and Payroll Microfinance and Micro loans Cross Boarder Remittance SME Business Solutions Government Inflows and Payments: Disbursements: Pensions, Social benefits, Payroll, incentives etc Digitizing Ministries payments Transit automation (Metro and Railway) Government Consumer Awarness Consumer Education is key to accelerate service adoption Focus on a single use case How to use it the basics MAY 7,

9 POS 2017 Mastercard. Proprietary and Confidential. QR Code Acceptance where to use my wallet 1 2 In-store merchants Digital Merchants Acceptance Consume r Educatio n Encourag e Inflows Governm ent Consumer Scan QR Code Enter Pin Notification to mobile app or mpos Merchant ID Enter Pin **** Receipt printed from POS machine MAY 7,

10 Acceptance where to use my wallet 1 2 In-store merchants Digital Merchants Acceptance Consume r Educatio n Encourag e Inflows Governm ent Request to Pay Billers Recurring payments Payment initiated by merchant Payment initiated by Customers Payment scheduled to deducted from wallet Merchant/ corporate Value to be paid Merchant/ corporate Select merchant Enter value Merchant/ corporate Confirm by PIN Confirm by PIN Confirm by PIN Key success factor is engagement with Merchants and corporates 10

11 Encouraging Inflows and main pillars for growth Acceptan ce Encourage Inflows Disbursements Corporate Salaries and Payroll Microfinance and Micro loans Cross Boarder Remittance SME Business Solutions Consume r Educatio n Governm ent International Remittance (21 Bn $) Global remittance market of USD 600 billion, Egypt receives around USD billion, ranked number 6 globally 85-90% of Egypt remittance received in cash Instant transfer to mobile wallet Safe and secure transfer Collect instantly from any ATM (Card-less) Wallets are not just a simplified solution for customers, it is an important tool to grow the amount of inflows to the banking system MAY 7,

12 Direct Cash is the major mean to transfer over Electronics Acceptan ce Encourage Inflows Funds Out Summary Receiver Estimated Competitive Market Shares Consume r Educatio n Governm ent Direct Bank Arrangements 30-50% Traditional (Direct cash deposit at agents/branches 85%-90% Airtime Top Up <1% ~5% Global Breakthrough now in Egypt Bank wire transfer 10%-15% Bank Transfer / Wire 10%-15% 20%-30% Leverage HomeSend network that connects more than 100 large senders globally. Instant, Cost efficient, speed to market Collect instantly from any ATM (Card-less) Source: MasterCard Advisors analysis based on SME interviews

13 Government the Inflows to the wallets 1 2 Ministry of Social Solidarity Ministry of Education Acceptan ce Consume r Educatio n Encourag e Inflows Government MasterCard in cooperation with Ministry of Social Solidarity and Vodafone initiated a Government disbursement model for social benefits to the mobile wallets The Pilot focused on one program for the Women alimony, where they receive their benefits on the phones where they can cash it out from the nearest agents saving them cost and effort of traveling to the ministry outlets. After the success of the pilot the Ministry is planning to rollout the service to 25K beneficiary as first phase and to 300K next year (and this is just one program) MAY 7,

14 Government the Outflows and Convenience 1 2 Ministry of Social Solidarity Ministry of Education Acceptan ce Consume r Educatio n Encourag e Inflows Government 50,000 schools, 18 Million Students and the Ministry collects 10% of the fees Engaged with Ministry of Education to facilitate public school payments through (Pilot below) مدفوعات 1- دفع مصاريف مدارس 2- دفع مشتريات 3- دفع فواتير مدفوعات- مصاريف مدارس إدخل رقم الطالب مدفوعات- مصاريف مدارس مصاريف الطالب خالد محمد 56 جنيها مصريا للدفع إدخل رقمك السري مدفوعات- مصاريف مدارس تم الدفع بنجاح. 6. مدفوعات 7. إستعالم رصيد MAY 7,

15 Consumer Education is key to accelerate service adoption Acceptan ce Encourag e Inflows Focus on a single use case Two key learnings How to use it the basics Consumer Education Governm ent Person to Person Money Transfer How to download the APP Set the M-PIN Why it is safe Try one transaction MAY 7,