Suggestion for Rural Computer and M-Commerce By: Naineet C. Patel Ranjeet Kumar Vimal Gautam Garde

CyberBooth  Basic Idea :  selling information as a commodity  Provide low cost computer to shopkeepers  feasible internet connection  access to govt. services, market services, etc  proper training with the help of govt or NGO's  Similar to a Phone Booth

How its different  CyberCafe  Doesn't need to have the customer directly interact with computer  Just need of one computer  Kiosk  Access to internet so large spectrum of services and information  Later more service can be added like printing, scanning, webcam, etc

Pros & Cons  Pros  Customer doesn't need to be literate or familiar with computer  Since shopkeeper will gain money for service so will themselves help in creating awarness  Can be easily setup  Cons  Security issue  Privacy issue

Our ideas on Services  Basic information like market prices of commodity, forum access etc can be provided  Weekly Chat sessions with experts can be provided for eg veterinarian, Agriculture Expert, etc  e-Post  Banking services  Mobile Recharge  Railway Booking  etc  Note: for customers who don't have online banking account, the shopkeeper can use his/her account and directly take cash for the customer.

Strengths  Can create jobs in rural areas  Useful to people who use internet once in a while, cant afford to have a computer or monthly internet service.  Since customers just need to interact with shopkeeper he will feel more confident and and less alienated  Experts help will be easily available and readily available  Helps to save & create money eg no need to travel far away to know market prices, recharge, booking,etc  Slowly and steadily can creates awarness of IT in rural public

M-Commerce Case study (work done in Philippines)‏

Features of m-Commerce Features of m-Commerce –Provision for cash deposits and withdrawals. –Ability for third parties to make deposits into a user account. –Ability to make retail purchase. –Over-the-air prepaid top-ups using the cash already in the account. –The ability to transfer cash between users account. –Provision for bill payments.

Issues included Issues included –Who would be the parties involved. –What responsibilities would each party undertake. –What services are to be offered. –Is a debit card appropriate. –What charges will apply. –Estimating the likely transaction volumes. –Deciding on the system vendors. –Identifying management and operational skill sets required.

–Back office support services. –Effective customer care service available –Preparing a realistic business case and project plan.

Opportunities and Challenges Customer perspective Customer perspective Institutional perspective Institutional perspective

Customer Perspective Features: Features: –Needs meet by m-Commerce solutions Accessibility: Accessibility: –Distribution of transaction points Affordability: Affordability: –Transaction costs need to be low Ease of use: Ease of use: –Easy to use, fast & user friendly

Institutional Perspective: Fees and Charges: Fees and Charges: –Need for an appropriate revenue strategy Efficiency Gains: Efficiency Gains: –Can the institution substantially increase business transactions at lower cost? Controlling Development Costs: Controlling Development Costs: –Need to ensure positive returns on investment

Institutional Perspective: Partnerships & Distribution Network: Partnerships & Distribution Network: –Multiple business partnerships are essential –Need a wide enough network focused on accessibility and ease of use Multiple Business Cases: Multiple Business Cases: –Each partner must benefit through reduced costs, –increased efficiency, or direct income

Agencies participated G-cash from Globe G-cash from Globe Smart Money Smart Money We will discuss about G-cash

Rural Banks in the Philippines Philippine rural banking network coverage: 760 rural banks with over 2,000 branches Philippine rural banking network coverage: 760 rural banks with over 2,000 branches US$2 billion in assets US$2 billion in assets Over 5 million deposit accounts Over 5 million deposit accounts Over 1 million borrowers Over 1 million borrowers

Globe Telecom One of the leading mobile phone operators in the Philippines One of the leading mobile phone operators in the Philippines Over 13.5 million subscribers Over 13.5 million subscribers Over US$1B annual revenue Over US$1B annual revenue Cell phone industry processes approx. 200 million messages per day in the Philippines Cell phone industry processes approx. 200 million messages per day in the Philippines Alliance partners include 7 mobile operators in Asia with close to 70 million subscribers Alliance partners include 7 mobile operators in Asia with close to 70 million subscribers Alliance partnership involves sharing of technology, innovation, and best practices including marketing programs. Alliance partnership involves sharing of technology, innovation, and best practices including marketing programs.

What is G-CASH? o Cash-less and card-less micro payment over a mobile phone. o The country’s first and only mobile wallet service  Purchase goods and services  Micro-finance applications  Tax and bill payments  Send and receive money person to person or P2P  Domestic and international remittances

Subscriber Registration Subscriber REG 1234 / Aurora Reyes/ Juan/ Dela Cruz/ 5 Santol St., Project 4, QC/ Thank you Juan Dela Cruz for registering to G- Cash on 08/12/04 at 10:30 a.m. You may now use G-Cash. For more info, reply to this msg with INFO. Ref Send SMS: REG M- PIN/Mother’s Maiden Name/First Name/Last Name/Addres Confirms receipt of SMS with welcome text and corresponding trace number 2882 SMS facility

Recipient receives SMS advisory of G-Cash transfer Outlet’s service unit receives SMS acknowledgment with confirmation number Merchant: a)Verifies identity of customer b)Processes transaction Collects payment a)Sends G-Cash from outlet’s service unit to recipient’s mobile no. via P2P Customer shows valid Text-a- Payment ID and gives cash-in amount and service fe e Customer goes to Outlet to exchange cash for GCash

P2P Transfer Enter amount and PIN. Send to digit mobile no. of recipient Fee: only P1.00/send Both the sender and recipient receive a SMS advisory with corresponding trace number

Issues To Be Considered In Establishing an m-Commerce Issues for a Network Operator. Issues for a Network Operator. Banking Issues. Banking Issues. Market Issues. Market Issues. Competition Issues. Competition Issues. Regulatory and Security Issues Regulatory and Security Issues Competency. Competency. Transaction Management Issues. Transaction Management Issues. Company Infrastructure Company Infrastructure

Issues for network operator: Which model to adopt Which model to adopt –Access Model –Hybrid Model Access Model Access Model –Search for banking partner Hybrid Hybrid –How far should model be developed

Banking issues: Banking issues: –How to use expanded market –Help in reducing fraud,money laundering –provide solutions for banking regulations Market Issues Market Issues –attracting customers minimum p2p airtime credit allowed was 4 cents minimum p2p airtime credit allowed was 4 cents minimum prepaid top-up was 47 cents minimum prepaid top-up was 47 cents –support for “sachet” purchasing Competition Issues Competition Issues Regulatory and security Issues Regulatory and security Issues –Liquidity,security,fraud detection

TRANSACTION MANAGEMENT ISSUES: TRANSACTION MANAGEMENT ISSUES: –large no of low value transaction –increase in no of sms handled by existing networks –third party transactions –need to develop new transaction engine Robust company structure Robust company structure

Conclusion Aim of this presentetion was to identify key aspects of currently availble m-Commerce systems. for devloping economies m-Commerce is benifitial in- perticular for – Capturing unofficial cash float in the community –eliminating need for people to carry cash in significant amount –reducing the exposure to robbery –enabling the advancement of micro-loans to the commnity –facilitating loan repayments –unabling payments of utility bills

By industrial perspective –Banks increase in customer reach increased cash float available to the bank –Networks increase in text messaging revenues greater appeal to the market –Retailers added business opportunities competitive advantage –micro-finance institutions ability to advance funds to remote areas regular convenient repayments from users

m-commerce was successful in Philippines Conditions of rural areas of Philippines and that India are quit same.There is major section people who use mobile but have to go km to deposit/withdraw money in/from back.m-commerce can be experimented in India if some network operator comes forward to help

Thanks