1. The Celpay Solution Miyanda Mulambo Celpay Zambia Limited .
My name is David Easum, I work for MSI Cellular Investments, an investor and telecoms network operator focused exclusively on Africa.
I’ll start by telling you a little about the company and then I’ll explain a bit about why we have used -- for the most part -- GSM as the solution of choice for implementing wireless networks in our efforts to bridge the digital divide.
Miyanda Mulambo
Celpay Zambia Limited
Budget Presentation

2. Making Finance Work For Africa
What is Celpay?
Celpay ..… facilitates banking services and payment solutions using cellular network infrastructure The Principle uses Mobile phone as basic instrument for payment instructions - Menu options for users to send payments to others - Money is taken from deposit accounts. No credit
Celpay
Making Finance Work For Africa

3. Making Finance Work For Africa
Transaction Flow
GSM
Network
Start:
Payment
Order
Confirmation,
Balance Increase
End:
Balance
reduction
Payment Gateway
Payment Processing
Celpay
Making Finance Work For Africa
Budget Presentation

4. Making Finance Work For Africa
What does Celpay do?
Cellular Operators
Merchants
MFWFA
Account Holders
Banks
Celpay
Making Finance Work For Africa

5. Making Finance Work For Africa
What does Celpay do?
“3-channel” electronic access to a bank account
Mobile phones
Internet
Point of Sale Devices
Partners with banks and Network Operators
Facilitates electronic financial transactions
Real time
Mobile
Safe
Convenient
Value added services/third party applications
Individual electronic auto top-up
Wholesale airtime distribution
Stock ordering
Telephone recharge
Payment requests/Bill payments
Payroll payments
Corporate distribution payments facilities
Celpay
Making Finance Work For Africa

6. Making Finance Work For Africa
Celpay Features
Real-time with instantaneous account update
Cash equivalent – wireless cash: sender cannot reverse transaction
Detailed records are available for each transaction
Inter-operable across banks and operators
Affordable, easy to use and Simple solution (SMS & Handset based -no additional equipment)
Fully automated financial solution with full audit trail and reporting functionality
Real time 24/7 distribution solution that Facilitates a hierarchical distribution model (if desired) Including financial settlement
Bank level security minimizes losses and fraud
Celpay
Making Finance Work For Africa
Budget Presentation

7. Celpay Corporate Partners
BP Zambia Plc
Multichoice Zambia
Zambian Breweries Plc
Zambia Bottlers Ltd
Celtel Zambia Ltd
Total Zambia Ltd
Chilanga Cement Plc
SEEDCO
INTERNATIONAL
ZAMBIA LTD
Seedco Zambia Ltd
Celpay
Making Finance Work For Africa
Budget Presentation

8. Making Finance Work For Africa
Celpay Partner Banks
Celpay
Making Finance Work For Africa
Budget Presentation

9. Celpay Services to Customers
Benefits
CONSUMERS
Pay at the till
Pay bills at home
Auto airtime purchase
Bill payments at Celpay Pay Points
Low cost services
Carry less cash
Buy what you want, when you want
Safe & convenient
Track spending
Affordable banking services
EMPLOYERS
Payroll
Instant, remote disbursement of funds
Fuel allowances
Mobile recharge
Easy to distribute allowances
Track usage precisely
Save time and money
Provide employees with banking services
CORPORATES
Take cash out of distribution
Payment confirmation
Save time
Increase safety
Reduce cash management costs
Improve reconciliation process
NETWORKS
Replace scratch-cards with fully electronic airtime vending system
Reduce theft
Never run-out of airtime
Minimise distribution costs
Sales 24/7
Eliminate scratch-card costs
Celpay
Making Finance Work For Africa
Budget Presentation

10. Celpay Services to Customers
Benefits
MERCHANTS
POS Devices
Track spending Real time Payment
Reduced cash management and fraud
Greater security
Remote bill presentation and payment authorization
High quality record management
Distribution management
BANKS
Mobile Banking infrastructure
Increase in deposits from new accounts
Reduced cash management
Lower cost of servicing new clients (unbanked)
Able to offer new products to existing clients
Able to test market for m-commerce with minimal investment risk
Celpay
Making Finance Work For Africa
Budget Presentation

11. Making Finance Work For Africa
Celpay Successes
Primary successes in B2B transactions with customers such as Zambian Breweries Plc, Zambia Bottlers Ltd, Heineken, Coca Cola, Total, BP, Mobile operators
Celpay has brought previously unbanked informal traders to the forecourt of the bank.
C2B adoption mainly through Multi-choice and other corporates
Over 100 POS devices in Zambia and 75 POS devices in DRC accepting payments from mobile phones
POS used for cash collection (C2B) and payouts ( cash back)
Direct prepaid Top up from phones
P2P payments showing some adoption
Exploring payroll opportunities
Celpay and its distribution network act as a payment platform to pay out ~$45 mil in cash to 75k demobilized combatants. This a World Bank sponsored project in the DRC
Product well received by both formal and informal players
Celpay
Making Finance Work For Africa

12. Celpay Successes – Transaction Throughput
Making Finance Work For Africa

13. Initiatives to Service the Unbanked
Investing in a Cash Point network
Celpay subscribers will be able to have Celpay-enabled bank account and withdraw cash at a cash point
Partnership with Zampost as the anchor cash point
Initiative awaiting BOZ approval
This will form backbone for payroll to those receiving their pay in cash
IT will afford the ordinary person to have a savings at very low cost
Also looking at Remittances
Celpay
Making Finance Work For Africa

14. Making Finance Work For Africa
Market Opportunity
Appropriate in markets with limited POS & banking infrastructure
- new generation payment instrument
Alternative to making heavy infrastructure investment for ATMs and debit cards
- creates pervasive network
Augments existing accounts to enable wireless transactions
Celpay
Making Finance Work For Africa
Budget Presentation

15. Making Finance Work For Africa
Legal Status
Celpay is an IT service provider for banks
Banks must undertake the opening of accounts
Consumers/merchants have no credit – debit balances only
Funds in the accounts belongs to Celpay subscribers and merchants, not to Celpay
Banks provide the link to the ECH
Celpay
Making Finance Work For Africa
Budget Presentation

16. Making Finance Work For Africa
Economic Impact
Celpay moves cash from general circulation into the banking system
Celpay formalizes previously informal transactions, creating a reliable audit trail
Celpay enables banks to offer very low cost services to a new customer base
Celpay facilitates banks’ cross-selling mainstream banking services
Celpay frees individuals from wasteful travel, standing in line, and money counting to pay bills
Celpay
Making Finance Work For Africa
Budget Presentation

17. Making Finance Work For Africa
Challenges
Lack of Direct Integration with Bank Systems
Celpay system sitting outside bank systems has posed a challenge of Celpay having to do the bank’s job of selling and marketing financial solutions
Account opening process
Account opening process is a hindrance to most people opening bank accounts especially
For the banked this entails going over the same process of account opening to have access to Celpay
Depositing
Going to the bank to deposit has always been a deterrent for most people to take up Celpay
Cash Point services should help to address this challenge
Celpay
Making Finance Work For Africa
Budget Presentation

18. Making Finance Work For Africa
Celpay Vision
Banks ….
Setup cash-points network to increase proximity from cash deposits & withdrawals perspective ;
Brand the product & offer it as value added services to existing & new customers ;
Take care of cash collection;
Celpay...
Act as an enabler;
Support GSM Operators’ & Partner Banks’ marketing & sales teams;
Deal with reconciliation & reporting;
Celpay
Making Finance Work For Africa

19. Making Finance Work For Africa
Celpay Security
Authorization:
Allows multiple Account Handlers access without jeopardizing security;
Keeps track of whom has authorized which transaction;
Data encryption:
Allow highly secure data encryption through 3DES;
Authentication:
Supports five digits Personal Identification Number (PIN);
Customer must also have in his possession the registered SIM card to use the PIN;
All money movements are fully logged and can be examined for suspect behavior;
Non repudiation capability:
The customer cannot deny having made a payment;
Celpay
Making Finance Work For Africa
Budget Presentation

20. Celpay - Banking for All
Making Finance Work For Africa
Budget Presentation