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DIGITAL MONEY TRANSFER

& REMITTANCES
Player Landscape & Juniper Leaderboard

Prepared for Amdocs

www.juniperresearch.com
DIGITAL MONEY TRANSFER & REMITTANCES Deep Dive Strategy & Competition 2018-2022
1

First Published January 2018


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DIGITAL MONEY TRANSFER & REMITTANCES Player Landscape & Juniper Leaderboard
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Contents

1. Player Landscape & Juniper Leaderboard


1.1 Introduction ......................................................................................3
1.2 Juniper Leaderboard .......................................................................3
1.2.1 Vendor Assessment Criteria ........................................................3
Table1: Digital Money Transfer & Remittances Platform Vendor Assessment
Criteria ................................................................................................................. 4

Table 2: Vendor Analysis Scoring Matrix: Mobile Money & Remittances Segment
Coverage Map ...................................................................................................... 5

Figure 3: Juniper Leaderboard for Domestic & International Money Transfer &
Remittances Market.............................................................................................. 6

1.2.2 Limitations & Interpretation .........................................................7


1.3 Vendor Profiles ................................................................................8
1.3.1 Amdocs ..........................................................................................8
Table 4: Vendor Scoring for Digital Money Transfer & Remittances Leaderboard . 8

i. Corporate .......................................................................................................... 8

Table 5: Amdocs Financial Performance Snapshot, 2015-2017 ............................ 9

ii. Geographic Spread ........................................................................................... 9

iii. Key Clients & Strategic Partnerships ................................................................ 9

iv. High Level View of Offerings ............................................................................ 9

v. Juniper’s View: Key Strengths & Strategic Development Opportunities ........... 10


DIGITAL MONEY TRANSFER & REMITTANCES Player Landscape & Juniper Leaderboard
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 TransferTo

1.1 Introduction  Visa

This document summarises a number of domestic and international money


transfer and remittance platform providers in this section. Please note that 1.2 Juniper Leaderboard
this is not an exhaustive list of vendors, but is a select profile of vendors
aiming to generate revenue in the money transfer and remittances 1.2.1 Vendor Assessment Criteria
industry. It is not intended to provide comprehensive coverage of all the
vendors operating in this market, but reviews 12 players that are currently Our approach is to use a standard template to summarise vendor
leading the market and/or disrupting key sectors. capability, which concludes with our views of the key strengths and
strategic development opportunities for each vendor. These vendor
The vendors analysed and placed into our Leaderboard are: specific templates are found later in this section. Here we provide our view
of vendor positioning using our new Leaderboard technique. This
 Amdocs technique, which applies quantitative scoring to qualitative information,
enables us to assess each vendor’s capability and capacity, its product
 eServGlobal
and position in digital money transfer and remittances market.
 Huawei
The resulting Leaderboard shows our view of relative vendor positioning.
 Infosys EdgeVerve
We have assessed each vendor’s capabilities against the following criteria:
 Interac

 Mahindra Comviva

 Mastercard

 OBOPAY

 PayPal

 Telepin Software
DIGITAL MONEY TRANSFER & REMITTANCES Player Landscape & Juniper Leaderboard
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Table1: Digital Money Transfer & Remittances Platform Vendor Assessment Criteria

Category Factor Description

Financial Performance & Size in


Capability & The size of the vendor in mobile money transfer based on revenues or customers announced. Investments are also taken into
Sector – Money Transfer &
Capacity account.
Remittances

We evaluate here the vendor’s success to date, as measured by the number of customers to whom the vendor has sold their
Customers & Deployments
mobile money transfer product.

This factor evaluates the overall extent of geographical activity of the vendor based on numbers of regions and offices to measure
Operations & Geographical Spread
global reach.

This factor evaluates the length of a company’s domestic and international money transfer activities including experience,
Experience in Sector
mergers, acquisitions and industry role.

The extent to which vendors have marketing or distribution channel partnerships in place, eg in-country sales specialists and
Distribution/Partnerships & Branding value added retailers. The strength of the vendor’s brand and marketing capability as perceived by a review of the company’s
Strength website; aspects such as use of case studies, communications and ‘joined-up’ marketing of total solution packages were also
considered.

Product & The extent of coverage of the main mobile money transfer segments: domestic P2P, international P2P, airtime top-up, merchant
Money Transfer Segment Coverage
Position payment, bill payment, micro-insurance, salary disbursement and loan disbursement.

This factor relates to breadth of product or service offerings from the vendor. We also evaluate the vendor’s success to date, as
Products or Service Offering Strength
measured by their experience and expertise with other stakeholders.

Assesses the extent to which a vendor’s product range is fully compliant with regional and national level regulations and
Certification & Compliances
legislation.

Creativity & Innovation This factor assesses the vendor’s perceived innovation through its flow of new products, developments and enhancements.

This factor evaluates the vendor’s future business opportunities and strategic directives to expand across global markets and
Future Business Prospects
other industry verticals.

Source: Juniper Research


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Table 2: Vendor Analysis Scoring Matrix: Mobile Money & Remittances Segment Coverage Map

Coupons/Vouchers

Merchant Payment
Recharge/Top-up

Micro-insurance
Disbursement

B2P Payment
Savings/Loan
Mobile Wallet
International

Remote Bill
Transfers

Transfers
Domestic

Payment

Mobile
Amdocs          
eServGlobal          
Huawei          
Infosys EdgeVerve          
Interac          
Mahindra Comviva          
Mastercard          
OBOPAY          
PayPal          
Telepin Software          
TransferTo          
Visa          
Source: Juniper Research
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Figure 3: Juniper Leaderboard for Domestic & International Money Transfer & Remittances Market

Juniper considers Amdocs to be the leading digital money transfer &


remittance vendor.

Amdocs’ diversification into the field of mobile money for developing


markets has been rapid and successful.

Amdocs’ MFS solution, including a unified mobile wallet, appears a


compelling package and continues to enable Amdocs to gain market
space in this sector.

Source: Juniper Research


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the matrix does not imply that any one vendor is necessarily better placed
1.2.2 Limitations & Interpretation than others.

Our assessment is based on a combination of quantitative measures For example, one vendor’s objectives will be different from the next and
(where they are available, such as revenues and numbers of employees) the vendor may be very successfully fulfilling them without being placed in
that will indicate relative strength and also qualitative judgement based on the top right box of the matrix which is the traditional location for the
available market and vendor information as published. In addition we have leading players.
enhanced our in-house knowledge from meetings and interviews with a
range of industry players. Therefore, for avoidance of doubt in interpreting the matrix, we are not
suggesting that any single box implies in any way that a group of vendors
We have used publicly available information to arrive at a broad, indicative is more advantageously positioned than another group, just differently
positioning of vendors in this market, on a ‘best efforts’ basis. However, we positioned. We additionally would draw the reader’s attention to the fact
would also caution that our analysis is, almost by nature, based on that vendors are listed alphabetically in a unit of the matrix and not ranked
incomplete information and therefore some elements of this analysis we in any way in the box of the matrix.
have had to be more judgemental than others. For example with some
vendors, less detailed financial information is typically available if they are The matrix is also valid at a point in time: December 2017. It does not
not publicly listed companies. indicate how we expect positioning to change in future, or indeed in which
direction we believe that the vendors are moving. We caution against
We also remind readers that the list of vendors considered is not companies taking any decisions based on this analysis: it is merely
exhaustive across the entire market but rather selective. Juniper Research intended as an analytical summary by Juniper as an independent
endeavours to provide accurate information. Whilst information or third-party.
comment is believed to be correct at the time of publication, Juniper
Research cannot accept any responsibility for its completeness or Finally we would point out that the Leaderboard is based on a global view
accuracy: the analysis is presented on a ‘best efforts’ basis. consolidated across all mobile money transfer market segments; any
matrix produced for one specific region or mobile money transfer market
The Leaderboard below compares the positioning of mobile and online segment would by definition show different vendor positioning. Indeed, not
money transfer and remittances vendors based on Juniper’s scoring of every vendor would appear on such a matrix.
each company against the above criteria that Juniper has defined. The
matrix is designed to compare how the vendors position themselves in the
market based on these criteria: relative placement in one particular unit of
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1.3 Vendor Profiles

1.3.1 Amdocs

Juniper Research interviewed Maya Barkay, Product Marketing Director, Amdocs, in December 2017

Table 4: Vendor Scoring for Digital Money Transfer & Remittances Leaderboard

Sector Capability & Capacity Product Positioning


Financial Distribution/ Money Products or
Operations & Future
Performance Customers & Experience Partnerships Transfer Service Certificate & Creativity &
Geographical Business
& Size in Deployments in Sector & Branding Segment Offering Compliance Innovation
Spread Prospects
Sector Strength Coverage Strength
Amdocs

Source: Juniper Research

HIGH LOW

i. Corporate

Founded in 1982, Amdocs is listed on the NASDAQ Stock Exchange. With more than 25,000 employees, Amdocs reported revenues of $3.9 billion for the FY
2017, up from $3.7 billion in 2016. The Amdocs MFS solution enables MNOs, banks and other FIs to drive adoption of financial services delivered over
featurephones or smartphones, addressing the fundamental need of unbanked and under-banked populations worldwide for accessible and affordable banking
services. The platform supports money transfers, bill payments, mCommerce, savings, loans, insurance, loyalty management and top-up transactions.
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Key statistics include: several key partnerships that have enabled us to expand our product
capabilities and our solution’, stated Barkay.
 More than 16 billion annual transactions, with $3.1 billion processed
monthly; ‘We have enhanced our capabilities across a few key domains including
loans, card-management and related solutions. This has increased our
 Serving over 30 FIs and service providers. ability to provide non-traditional credit scoring solutions as well as loan
product management solutions for small loans; additionally, we partnered
Amdocs’ CEO and President is Eli Gelman; Tamar Rapaport-Dagim is
with broader retail POS (Point of Sale) terminal providers and issuance
CFO.
solutions to service our diverse and international customer base that are
Table 5: Amdocs Financial Performance Snapshot, 2015-2017 interested in adding multiple sources of funds, utilising their wallets in
diverse retail environments as well as internationally’ she added.
FY 2017 FY 2016 FY 2015

Revenues ($m) $3,867 $3,718 $3,664


iv. High Level View of Offerings

Operating Income ($m) $517 $483 $516 The Amdocs MFS solution delivers a unified mobile wallet delivered as a
Net Income ($m) $437 $409 $446 while label solution from which users can manage and control their
finances, including money transfer, bill payments, mCommerce, merchant
Source: Juniper Research payments, savings, loans, insurance loyalty points and top up
transactions. The solution includes integrated partner payments and
ii. Geographic Spread
settlements with capabilities for onboarding and managing the extended
Based in Missouri, US, Amdocs maintains development facilities in Brazil, ecosystem of merchants and business partners (credit card companies,
Canada, Cyprus, India, Ireland, Israel and the US; it has operations in utility providers, employers).
North America, Europe, Israel, Latin America and the Asia-Pacific region.
Amdocs' Mobile Financial Services Center of Excellence is accountable for
iii. Key Clients & Strategic Partnerships the overall solution delivery, from technical design and system
implementation and integration, to daily operation in a managed services
Key global MFS clients include T-Mobile’s Metro PCS, Tigo Money, Tigo model. In addition, Amdocs has built a Business Accelerator Services
Cash, Strex, Airtel Money, Globe Cash, Ooredoo, JSC Mobile Finance, Practice that focuses on the MFS segment, in particular market insights
Maxis M-Money, Digicel, BSNL, Telenor and True Move to name a few. and customer segmentation, and translates this insight into tangible
actions for service providers in Asia Pacific, Europe and North America.
Over the past 12 months, Amdocs MFS has focused on finding the right
strategic partnerships to enhance its solution. ‘We have embarked on
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The solution covers 3 broad areas: v. Juniper’s View: Key Strengths & Strategic Development Opportunities

 Digital Commerce & Payment – Airtime top-up, bill payment, P2P,  Multinational corporation with more than 14 years’ experience in the
merchant and retail payment (P2B), cash disbursement (G2P, B2P), mobile payments space. Acquisition of Utiba Mobility provides Amdocs
B2B SCM, loyalty and gifting, online payment GW, ticketing, CI/CO. with key assets and experience in the mobile money space, specifically
geared to emerging markets.
 Connected Money – International airtime transfer, international money
transfer, international bill payments.  Revamped MFS solution, including a unified mobile wallet, appears a
compelling package and should enable Amdocs to expand rapidly in this
 Digital Banking – Savings, credit, loan, insurance, personal finance sector.
management.
 Robust SaaS, cloud-based gateway solution reduces time-to-market for
Barkay observed that Amdocs continues to advance and refine its MFS merchants and offers settlement against numerous payment
capabilities in the following domains: mechanisms.

 Card management solution: Easily deployed as a SaaS  Amdocs Mobile Payment platform offers reporting and analytics feature,
(Software-as-a-Service) solution, it can be integrated securely with local increasingly critical to merchants seeking to build relationship with
card manufacturing companies for card printing and distribution. The individual users.
system incorporates a back-office administration user interface that
manages card specifications, card product definitions and issuer
identification number ranges. as well as supporting EMV cards, HSM
security, P2P encryption and more.

 Platform enhancements to meet the GDPR open banking initiative


evolution, including incorporation of many mobile money APIs including
GSMA’s Mobile Money API, GDPR support and others.

 Enhanced cloud hosting and platform as a service options keep costs


low, with product feature upgrades included.