Mobile Payment Markets Money Transfers & Remittances 2008-2013

SUMMARY

This report provides the most up to date view of the mobile money transfers market presenting market projections on subscriber take-up, transaction sizes and volumes. It splits the forecasts by national (domestic) and international and provides both analysis and forecast data on the opportunity for service providers to increase ARPU.

As well as secondary research this report also includes detailed one-to-one interviews with senior level executives along with in-depth case studies from key companies pioneering in the money transfer market.

This report provides six year forecasts, across eight regions of the world projecting market data on the incremental service provider revenue opportunity, mobile money transfers subscriber take-up, transaction frequency and transaction values.

Key Questions Addressed by this Report:

• How many mobile users will make money transfers over the next six years
• Which will be the leading regions in the market in 2013
• What are the early usage experiences of companies providing these services
• What will be typical transaction sizes
• How often will users make mobile money remittances
• What is the opportunity for mobile network operators to increase their ARPU

Key Benefits:

• A unique source of research and analysis for money transfers & remittances in the mobile payments marketplace including technologies, market characteristics and forecasts
• Practical analysis of emerging opportunities for vendors & operators
• Unique insights: includes interviews with leading players who have significant experience of money transfers & remittances in the mobile payments market
• Benefit from fresh thinking and intelligent market assessment

TABLE OF CONTENTS

Glossary

Executive Summary

• Introduction
• Mobile Commerce Market Trends
• Money Transfers: Setting the Scene
• GSMA Mobile Money Transfer Initiative
• Market Projections
• Service Provider Revenue Opportunity
• Mobile Money Transfer Ecosystem Players
• Recommendations

1. Mobile Commerce & Mobile Payments Market Trends

• 1.1 Introduction
• 1.2 Market Trends
  • 1.2.1 Tellabs Interview
    • Figure 1.1: Tellabs Mobile Backhaul Solution
  • 1.2.2 Bango Interview
    • Figure 1.2: Bango Analytics User Data Snapshot
• 1.3 Market Drivers and Constraints
  • Figure 1.3: Mobile Payments: Summary of Market Drivers & Constraints
  • 1.3.1 Drivers
    • i. User Demand
    • ii. Increase in ARPU
    • iii. Increase in Retail Basket Size
    • iv. Real Alternative to Cash
    • v. First-time Access to Payments for Many in the Developing World
    • vi. Lower Churn for Mobile Operators
    • vii. Increase in International Money Transfers to Developing Countries
    • viii. Increased Demand for Smartphones
    • ix. Quicker than Cash at Point of Sale (POS)
  • 1.3.2 Constraints
    • i. Availability of Capable Handsets
    • ii. User Experience
    • iii. Lack of Clear Business Model
    • iv. Resistance from Banks
    • v. Lack of Global Technology Standards
    • vi. Financial Regulations & Legislation
    • vii. Support Issues
    • viii. Transactions Costs for the Retailer

2. Mobile Payments: Market Structure

• 2.1 Introduction
• 2.2 Definition
  • Figure 2.1: mCommerce Payment Process
• 2.3 Segmentation
  • 2.3.1 Top Level Segments
  • 2.3.2 Sub-segments
• 2.4 Classification of Payment Schemes
  • Table 2.1: Mobile Payment Classification
  • 2.4.1 Remote Mobile Payment
    • i. Mobile Phone Bill - “direct to bill” (D2B) Payment
    • ii. Premium Rate SMS (PRSMS) - Digital Goods
    • iii. Online - Payment for the Mobile Web & WAP Billing
    • iv. SMS Payment - Mobile Wallet and Account Based Payment
      • Figure 2.2: PayPal Mobile “Text To Buy”
    • v. Person-to-Person (P2P) Payment
    • vi. Remote Physical/ Mobile Web & WAP billing
  • 2.4.2 Point of Sale Mobile Payment
• 2.5 On Deck & Off Deck

3. Setting the Scene for Money Transfers

• 3.1 Introduction
• 3.2 The Unbanked and Underbanked
  • Figure 3.1: USA Bank Account Ownership
• 3.3 Migrant Worker Remittances
  • Figure 3.2: World Remittance Flows ($bn) 2001-2007
  • Figure 3.3: Top 10 Migration Corridors 2005 - Millions
  • Figure 3.4: Top Remittance-Sending Countries ($bn) 2006
  • Figure 3.5: Top Remittance-Receiving Countries ($bn) 2007
• 3.4 GSMA Mobile Money Transfer Initiative
• 3.5 Mobile Money Transfer Services and Trials
  • Table 3.1: Sample of Mobile Money Transfer Services and Pilots/Trials

4. Vendors & Applications

• 4.1 Introduction
• 4.2 North America
  • 4.2.1 Affinity Mobile Interview
    • Figure 4.1: Affinity MADE Platform Enables Basic Banking Applications
    • Figure 4.2: Affinity MADE Platform Mobile Ecosystem
  • 4.2.2 XIUS-bcgi
  • 4.2.3 CPNI
    • Figure 4.3: CPNI PATsend Sample Call Flow
• 4.3 Western Europe
  • 4.3.1 Macalla Interview
    • Figure 4.4: Macalla Platform and Applications
  • 4.3.2 Mi-Pay Interview
  • 4.3.3 Monitise Interview
• 4.4 Rest of Asia Pacific
  • 4.4.1 GFG Group Interview
  • 4.4.2 Utiba
• 4.5 Africa & Middle East
  • 4.5.1 Fundamo Interview
    • i. Overview
    • ii. Markets
    • iii. Products and Applications
    • iv. Strategy
  • 4.5.2 Trivnet Interview
    • Figure 4.5: TRIV Platform™ and Applications

5. Operators and Services

• 5.1 Introduction
• 5.2 North America
  • 5.2.1 Trumpet Mobile Interview
    • Figure 5.1: Trumpet's Western Union Money Transfer Service
  • 5.2.2 Obopay .
  • 5.2.3 Monitise Interview: Everlink
  • 5.2.4 PayPal and Sprint
• 5.3 Western Europe
  • 5.3.1 Moneytext
  • 5.3.2 Crandy
  • 5.3.3 LUUP
• 5.4 Indian Sub Continent
  • 5.4.1 Bharti Airtel/Western Union
  • 5.4.2 Obopay/YES Bank
  • 5.4.3 Visa
• 5.5 Rest of Asia Pacific
  • 5.5.1 SmartMoney Interview
    • Figure 5.2: SmartMoney Service Features
    • Figure 5.3: SmartMoney Transfer Process
  • 5.5.2 Globe GCASH
• 5.6 Africa & Middle East
  • 5.6.1 Vodafone Interview
  • 5.6.2 MTN Interview
  • 5.6.3 Celpay
  • 5.6.4 MoneyBox Africa
  • 5.6.5 Monitise Interview: Made in Africa
  • 5.6.6 Etisalat

6. Money Transfer Forecasts

• 6.1 Market Segmentation
• 6.2 Methodology
  • 6.2.1 Approach and Assumptions
    • Figure 6.1: Mobile Money Transfer Market Forecast Methodology
  • 6.2.2 Geographical Splits
• 6.3 Mobile Subscriber Forecast
  • Figure 6.2: Mobile Subscriber Base (m) Regional Forecast 2008 - 2013
  • Table 6.1: Mobile Subscriber Base (m) Regional Forecast 2008 - 2013
• 6.4 Service Provider Revenue Opportunity Forecasts
  • Figure 6.3: SmartMoney Tariff Set Extract
  • Figure 6.4: Safaricom Tariff Set Extract
• 6.5 Total Service Provider Revenue Forecast
  • Figure 6.5: Total Service Provider Mobile Money Transfer Revenue Opportunity by Region p.a. ($m) 2008 - 2013
  • Table 6.2: Total Service Provider Mobile Money Transfer Revenue Opportunity by Region p.a. ($m) 2008 - 2013
• 6.6 Transaction Value Forecasts for All Mobile Money Transfers
  • Figure 6.6: Total Value of All Mobile Money Transfers p.a. ($m) Regional Forecast 2008 - 2013.
  • Table 6.3: Total Value of All Mobile Money Transfers p.a. ($m) Regional Forecast 2008 - 2013 .
  • Figure 6.7: Comparison of National & International Mobile Money Transfer Values (% of all) 2008 - 2013

7. National Money Transfer Forecasts

• 7.1 User Forecasts
  • Figure 7.1: Number of Mobile Users Making National Transfers (m) Regional Forecast 2008 - 2013
  • Table 7.1: Number of Mobile Users Making National Transfers (m) Regional Forecast 2008 - 2013
• 7.2 Transaction Traffic Forecasts
  • Figure 7.2: Average Number of National Mobile Money Transfers per User p.a. Regional Forecast 2008 - 2013
  • Table 7.2: Average Number of National Mobile Money Transfers per User p.a. Regional Forecast 2008 - 2013
  • Table 7.3: Total Number of National Mobile Money Transfers (m) p.a. Regional Forecast 2008 - 2013
• 7.3 Transaction Size Forecasts
  • Figure 7.3: Average Size of National Transactions ($) Regional Forecast 2008 - 2013
  • Table 7.4: Average Size of National Transactions ($) Regional Forecast 2008 - 2013
• 7.4 Transaction Value Forecasts
  • Figure 7.4: Total Value of National Transactions p.a. ($m) Regional Forecast 2008 - 2013
  • Table 7.5: Total Value of National Transactions p.a. ($m) Regional Forecast 2008 - 2013
• 7.5 Transaction Value Per User Forecasts
  • Figure 7.5: National Transaction Value Per User p.a. ($) Regional Forecast 2008 - 2013
  • Table 7.6: National Transaction Value Per User p.a. ($) Regional Forecast 2008 - 2013
• 7.6 Transaction Service Provider Revenue Forecast .
  • Figure 7.6: Service Provider National Mobile Money Transfer Revenue Forecast ($m) 2008 - 2013
  • Table 7.7: Service Provider National Mobile Money Transfer Revenue Forecast ($m) 2008 - 2013

8. International Money Transfer Forecasts

• 8.1 User Forecasts
  • Figure 8.1: Number of Mobile Users Making International Transfers (m) Regional Forecast - 2013
  • Table 8.1: Number of Mobile Users Making International Transfers (m) Regional Forecast 2008 - 2013
• 8.2 Transaction Size Forecasts
  • Figure 8.2: Average Size of International Transactions Regional Forecast 2008 - 2013
  • Table 8.2: Average Size of International Transactions Regional Forecast 2008 - 2013
• 8.3 Transaction Traffic Forecasts
  • Figure 8.3: Average Number of International Mobile Money Transfers per User p.a. Regional Forecast 2008 - 2013
  • Table 8.3: Average Number of International Mobile Money Transfers per User p.a. Regional Forecast 2008 - 2013
  • Table 8.4: Total Number of International Mobile Money Transfers (m) p.a. Regional Forecast 2008 - 2013
• 8.4 Transaction Value Forecasts
  • Figure 8.4: Total Value of International Transactions p.a. ($m) Regional Forecast 2008 - 2013
  • Table 8.5: Total Value of International Transactions p.a. ($m) Regional Forecast 2008 -
  • Figure 8.5: Worldwide Remittances p.a. ($bn) 2000 - 2007
  • Figure 8.6: Worldwide Remittances Growth p.a. 2000 - 2007
• 8.5 International Transaction Value Per User Forecasts
  • Figure 8.7: International Transaction Value Per User p.a. ($) Regional Forecast 2008 - 2013
  • Table 8.6: International Transaction Value Per User p.a. ($) Regional Forecast 2008 - 2013
• 8.6 Transaction Service Provider Revenue Forecast
  • Figure 8.8: Service Provider International Mobile Money Transfer Revenue Forecast ($m) 2008 & 2013
  • Table 8.7: Service Provider International Mobile Money Transfer Revenue Forecast ($m) 2008 & 2013

9. Standards & Forums

• 9.1 Introduction
  • 9.1.1 Who is Doing What?
    • Table 9.1: Overview of Selected Forum Activity
• 9.2 ETSI
  • 9.2.1 Members
• 9.3 The GSM Association
  • 9.3.1 Pay-Buy Mobile
  • 9.3.2 Mobile Money Transfer
  • 9.3.3 Members
• 9.4 International Organisation for Standards (ISO)
  • 9.4.1 Members
• 9.5 Mobey Forum
  • 9.5.1 Members
• 9.6 Mobile Payment Forum
  • 9.6.1 Members
• 9.7 NFC Forum
  • 9.7.1 Members
• 9.8 Open Mobile Alliance (OMA)
  • 9.8.1 Members
• 9.9 EMVCo
• 9.10 European Payments Council
• 9.11 Smart Card Alliance
  • 9.11.1 Members
• 9.12 International Association of Money Transfer Networks
• 9.13 Further Organisations