Contents:

Executive summary In a nutshell Key messages Mobile money market accelerating but still in a fragile state Unbanked users driving demand Operators leading a mix of mobile money players Technology, ecosystem and regulation are key enablers Mobile money will become a mass-market service by 2014… ….but a range of alternative scenarios remain possible Recommendations for service providers Three strategic reasons for mobile money services Segment target market carefully Start with a simple proposition Price is key Distribution channel is key to success with unbanked segment Understand and manage your ecosystem Get the basics right Mobile money: market analysis Definition and scope The current landscape Mobile money in a global context M-Pesa boosting hopes in emerging markets Baby steps and fragile gains Key market drivers and barriers User demand Technological maturity Regulatory issues Summary market drivers and barriers Market development scenarios Introduction Most likely scenario Optimistic scenario Pessimistic scenario Service provider strategies for success Why mobile money? Direct service revenues Indirect service revenues Brand-enhancing benefits User segmentation Banked consumers Unbanked consumers B2B distribution networks Micro-entrepreneurs Developing a mobile money proposition Simplicity is key Mobile money features Pricing strategy: balancing multiple aims Agents are key to success with unbanked segment Viral marketing is key to promotion Managing the mobile money ecosystem A powerful line-up of players and a complex value chain A wide spectrum of business models Pros and cons of each model Partnerships are not easy to get right Standalone models find more favour with banks Get the basics right: networks and technology Case studies Vodafone and Safaricom: M-Pesa (Kenya) MTN: MobileMoney (Uganda) Zain: Zap (Kenya) Orange Money (Ivory Coast) Smart Money (Philippines) List of Tables Table 1: Banking and ATM penetration Table 2: Substitutes to mobile money Table 3: Mobile money drivers and barriers Table 4: Most likely market development scenario Table 5: Optimistic market development scenario Table 6: Pessimistic market development scenario Table 7: Summary of mobile money services Table 8: Comparative pricing of selected mobile money services Table 9: Telecoms versus banking systems Table 10: M-Pesa service fees Table 11: MTN MobileMoney (Uganda) service fees Table 12: Zap service fees (Kenya) Table 13: Orange Money (Ivory Coast) service fees Table 14: Smart Money (Philippines) service fees List of Figures Figure 1: Mobile money in emerging markets Figure 2: Banking versus mobile penetration Figure 3: Mobile money service platform Figure 4: Addressing different regulatory dispensations Figure 5: Sample segmentation approach Figure 6: Service development approach Figure 7: Stakeholders in mobile payments ecosystem in emerging markets Figure 8: Mobile money value chain Figure 9: Models adopted by operators and banks for mobile money services Figure 10: Collaborative business model Figure 11: Bank-centric business model Figure 12: Operator-centric business model