1. Emerging Market Opportunities: Mobile Money in Incipient India Harold Montgomery CEO

2. 5.6 Billion Cell Phones 75% in the developing world

3. Its Official: Cell Phones are EVERYWHERE

4. Cell Phone Recharge + Top Up Station Its Everywhere You Want to Be

5. Interesting…. But will it catch on in the U.S.?

6. Mobile Wallets - Aggregation of Existing Payment Methods Too Many Cards Easy/faster than fast TBD DEVELOPING WORLD Transaction Tool Replacing Cash Too Much Cash Fast, Safe, Easy, Cheap, Certain Very High Definition Issue Solved User Benefit Value to User DEVELOPED WORLD Wallet / Wallet= THINK DIFFERENTLY

7. M-Pesa in Kenya First Mobile Money System Started to facilitate micro lending 5 years old Domestic Remittance is majority of volume Ubiquitous presence in Kenya A Success By Any Measure M-Pesa Metrics 70% of Adults Transaction Volume 25% of GDP Net Operating Revenue (0.5%) Kenya 15 Million $18 billion $90 million/year

8. Lessons from Kenyan Success Act fast, force regulators, banks to play catch up Near total telco monopoly – Safaricom 80% market share Built in distribution channel, trusted brand name High need among population – ban on migration Capable local team that will tackle the problem Supportive corporate parent Lots of Capital An unusual set of circumstances prevailed

9. Preconditions for Independent Success Regulatory approval/support Lack of entrenched special interests w/ veto power Banks Telcos High need among population Easy entry level products to build trust Capable local team that will tackle the problem Capital Lack of TOTAL Alignment is Fatal Of 140 live deployments, only a handful really scale

10. Why Telcos Should NOT Be In Charge Retain Mobile Subscribers Service area Not interested Low INDEPENDENT Process as many payments as possible 100% of Population By Definition Very High Goal Reach Interoperability Value to user TELCOS Telcos are in it to build the Telco Independents are in it for the user

11. INDIA Population 1.2 Billion, growing to 1.6 Billion by 2030 45 cities > 1 million 30% under age 14 30% urbanized/70% rural Middle Class = ~300 million people ($500/month) Per Capita GDP = $300/month 30% below the poverty line Literacy =61% 6 language groups, 100+ dialects Growing 6+% per year The Next China?

15. Mukesh Ambanis $2 billion house

16. Challenges and Opportunities In India Challenges: All cash economy Lack of bank accounts – only ~300M No payment mechanisms – credit, debit or check Weak transportation – Daily errands take time Firm governmental support for payment innovation The window for a fast, easy, reliable independent payment system is wide open Addressable market is 650+MILLION unique cell phones

17. Indias Mobile Market 13 Vendors Highly Competitive Fractionalized Market

18. The Paypal of India

19. What Can You Buy? Allows consumers to use their mobile phone to transact: Prepaid Cell Phone Prepaid Television Utility Bill Payment Ticketing Shopping Domestic Remittance Fast, easy, reliable, cheap HUGE value proposition vs. current methods Rural to Urban migration feeds Domestic Remittance Total Market $300 Billion +

20. How Does Money on Mobile Work? Consumers (Currently 17,814,000) Retailers (Currently 110,000) Money on Mobile 6 Satellite TV 15 Cell ProvidersRelatives CASH SMS TEXT INSTRUCTIONS SMS TEXT CONFIRMATION

22. Money on Mobile – Retailers Each retailer adds an average of 160 users Retailers are commissioned salespeople 110,036

23. Money on Mobile – Unique Users 17,814,735

24. Money on Mobile – Volume Processed Domestic Remittance will drive volumes higher Rs 536 M $9.8 M

25. Money on Mobile – Per User Statistics Lots and Lots of Micro Transactions

26. Lessons Learned There are HUGE opportunities in the developing world, BUT… Everything has to be right or nothing is right If youre going to be successful in the developing world, you have to think from that world Indian solutions by Indians for Indians that solve Indian problems the Indian way Have patience Get ready for surprises

27. Emerging Market Opportunities: Mobile Money in Incipient India Harold Montgomery CEO