Memo

Mobile
Financial
Services

Group internal
document
Ambition and strategy 3 categories of services A strategy adressing specific markets

Mobile
The Orange financial Mobile financial services Money Orange financial services
services ambition are an opportunity for the Group

■ Increase customer loyalty.

■ New income-generating activity.
400 million euros
x8 turnover in 2018 ■ Strategic axis for new Western Europe Eastern Europe AMEA + Diaspora Europe
vs. 2014. customer acquisition.
Romania Diaspora France
NFC
Payment France
30 million Spain Belgium Poland Slovakia AMEA Diaspora Belgium
x2 Orange Money
customers in 2018. Orange has many assets Orange
Moldavia Diaspora Spain
Cash
with Visa

■ A strong brand.

+1 Orange
Bank
■ An extensive customer base. Banking
maturity
■ A distribution network with
a high customer-interaction rate. Mobile
Banking Payment
■ Technological and marketing profitability
know-how.
■ A cross-benefit telecoms
and financial services offer.
Banking licence Mixed approach Orange Money structured
tailored to markets through EMI

02 Mobile Financial Services Mobile Financial Services 03

Orange Money
1
Orange Money is an
electronic money account
linked to an Orange mobile
number.
It is a universal solution
2 which is available on
any mobile and works when
there is no data network.
There is also an Orange Money
application for smartphone
owners.
With Orange Money,
3 customers can transfer
money, make payments and
access financial services. The
preferred payment with Orange
Money is airtime credit top-ups.
Next in line are other increa-
singly diversified categories:
bill payment (electricity, water,
etc.), online payment, payment
in shops, university fees, taxes,
cash withdrawals and salary
payment, etc.
4
The socio-economic
impact of Orange Money
is significant:
■ It makes trade easier.
■ It
improves access to
remote territories.
■ It promotes female
entrepreneurship: this is
highest in Sub-Saharan
Africa where 25% of women
create businesses (source:
2014 Global Entrepreneurship
Monitor global report).
International money
5 transfer provides a
veritable growth opportunity for
Orange Money:
■ Inter-country transfer:
between the Ivory Coast, Mali
and Senegal and available
soon in France.
■ Inter-mobile money operator
transfers:
- between the Ivory Coast,
Senegal and Burkina Faso
with Airtel.
- between the 3 operators
in Madagascar.
Key figures
Orange Money was
launched in the Ivory
Coast in 2008
At the beginning of 2016,
Orange Money is present
in 14 African and Middle-
Eastern countries: Ivory Coast,
Senegal, Mali, Niger, Kenya,
Botswana, Madagascar,
Cameroon, Central African
Republic, Mauritius, Guinea,
Egypt (Mobicash), Tunisia
(Mobimoney) and the
Democratic Republic of Congo.
16 million
customers.
360 million
transactions in 2015.
Orange Money development policy
■ Extend Orange Money status in 4 countries (Senegal,
to the AMEA footprint. Mali, Ivory Coast and Guinea)
7.5 billion euros ■ Develop the partnership
ecosystem (utilities, banks and
in the first quarter of 2016.
Orange adheres to bank
exchanged in 2015.
distributors, etc.). legislation and has authorisation
from the competent central
■ Develop financial services:
bank. In return, Orange will
Almost pico loan, savings, money
gain increased autonomy
100,000 transfer between bank and
Orange Money accounts and
and agility from this status
sales points by end
vice versa. and will be able to launch new
2015 in AMEA and services.
the launch of the first
■ Make Orange Money a
Orange Money store
universal means of online
■ Orange safeguards
in Paris: 95 avenue payment thanks to Orange
de Saint-Ouen, customers’ funds and guaran-
Money APIs.
75017 Paris. ties bank compliance through
■ Orange gain EMI the CECOM (Expertise Center
(Electronic Money Institution) for Orange Money Compliance).
Mobile Financial Services 05
 Orange Cash
Orange Cash is a free
1 application for Orange
customers and can be easily
uploaded (on Android and
Windows Phone).
Orange 2
To subscribe to
Cash Orange Cash,
customers must have a
with Visa postpaid Orange contract
(incl. capped, Sosh and
corporate tariffs), own
a NFC mobile which is
compatible with Orange
Cash, a NFC SIM card and
be over 18 years of age.
Orange
Cash
with Visa
With Orange Cash
3 customers can open
a prepaid account:
■ Reload with a Visa or
Mastercard, according
to each customer’s
needs regardless of the
customer’s bank.
■ Customers can pay up to
the amount loaded which the
customers themselves decide
via their smartphones.
■ Flat
rate of 0,79 euros per
top-up whatever the amount.
■A commitment and
subscription-free solution
which does not require the
presentation of documents
(2,500 euro top-up limit
per year).
4 Orange Cash is retail
smartshopping:
■ Orange Cash can be used in
6 Orange Cash is a secure
payment method:
■ Orange Cash is in partnership
any points of sales accepting with Visa: Orange Cash offers
Visa contactless payment
the same level of security as the
worldwide. Over 350,000 retai-
lers in France (30%) and over
chip in a bank card.
600,000 (50%) in Spain.
■ A secret code is required
■ The Orange Cash application for all payments over 20 euros
offers customers retail and online payments. It can
geo-localisation. be activated for all payments as
■ And special offers from
of one euro, on user request.
our partners (via SMS and
■ In France and Spain,
mobile notification).
Orange Cash is a prepaid Key figures
payment service, launched
Contactless payment is becoming
in partnership with Wirecard
With Orange Cash, cus-
5 tomers can also securely and Visa Europe.
increasingly the norm:
pay for online purchases using
a single-use-virtual-card num-
ber on all sites which accept
80 % in Poland. 30 % in France.
Visa cards.
50 % in Spain.
Mobile Financial Services 07
Orange Bank What will be Orange
Bank offer?
Orange Bank
in a nutshell
Orange Finanse, Poland
Orange Finanse is the first The Orange
■ A fully mobile, simple,
Unique Orange Mobile Bank initiative
2 Finanse offer:
transparent and original
Why create The third model was “Phygital” model and was launched in
an Orange bank
3 chosen during
offer.
retail acquisition and full Poland in 2014. It includes ■ Money can be transferred
■A comprehensive bank to a mobile number as easily
at this time? the Groupama negotiations digital servicing. banking services such as
as, if signed, it will enable offer: current account, loan, consumer loans and savings. as sending an SMS (regardless of
■ Explosion of mobile usages. Orange to take the lead of savings, insurance. Orange Finanse was created the recipient’s mobile
this future offer and its on the mBank partnership operator and bank).
■ The right price.
■ Accelerationof direct
evolution. Offensive pricing. distribution model which ■ Contactless retail payment.
banking adoption. ■ Cross-benefit telecom provides its banking know-
and financial services. ■ ATM cash withdrawals with
■ Favorable evolution of how and IT. Orange brings
regulatory context: for ■ Unique customer experience. its brand name, distribution a mobile.
Unique customer
example, bank account Why Groupama? experience network and marketing
■ This offer will be launched ■ Current account, consumer
number portability will facilitate Innovative, comprehensive know-how to the partnership.
in France beginning 2017. loan, savings.
customer bank changes. ■ Aligns on strategy
mobile services.
and vision. ■ The customer can also take
Orange Finanse is an advantages of retailers special
■ Provides robust and scalable
1 application for Orange
Orange studied What do Orange
offers and promotions.
banking assets, enabling and non-Orange customers.
3 models before
Orange to go fast. customers think?
creating a bank Orange key assets The service has attracted
■ Contributes to additional A third of customers fully leveraged. 3 250,000 customers since
Take control of an distribution power: 3,000
1 existing bank. Groupama and Gan agencies.
are interested in October 2014.
opening an Orange
Bank account and would
Start from scratch: ■ 13 million customers. like to be contacted
2 create a new bank at the launch (in-store
through a joint venture with ■ It is exportable to Spain customer survey -
a banking partner. and Belgium. 920 replies).

Mobile Financial Services 09

Orange and fintechs
What is a fintech?
Put “Finance” and “Technolo-
gy” together and you come up
with fintech: banking startups
which combine technology and
banking services for indivi-
duals and companies. These
companies use innovative and
disruptive operational, technolo-
gical and economical models
which aim to deal with existing
or future issues in the financial
services industry.
Afrimarket
in a nutshell
■ Lendopolis
Lendopolis (Kiss Kiss Bank Bank
Group) is a French SOHO/SME
Chain
in a nutshell
online crowdfunding platform
CEO : Rania Belkahia, CEO : Adam Ludwin.
which pays for itself directly via
The Orange Digital Jérémy Stoss.
individuals who wish to boost
Ventures portfolio their savings. This new funding Created in 2014.
in fintechs Created in 2013. model gives new meaning to
Previous funding:
savings as it contributes to
As part of the Group’s strategy, 30 million dollars
Previous funding: French SOHO/SME develop-
Orange Digital Ventures is in September 2015,
3 million euros in ment. According to project type
continuing early-stage startup in particular with
January 2015. and time scale, the gross interest Visa, Fiserv and
investments, especially in its
rate can generate 5 to 12 %. NASDAQ.
banking activity. Invested funds Country: France. Each project is initially approved
raised range from 500,000 to
by accountants. Country:
3 million euros. United States.

or family and benefit from

■ Afrimarket
With “cash-to-goods” money
transfer, everyday needs
to help friends and family
in Africa can be paid for
directly from Europe (food,
health, education, etc.) in
association with partner
retailers. It is one of the leading
international money transfer
markets. Users can choose
how they wish to help friends
reduced rates, in comparison
to traditional solutions,
and also rest assured that
quality fund tracking products
are used.
■ Chain
Lendopolis Chain is the first international
in a nutshell technological blockchain
CEO : Vincent Ricordeau. solutions provider and is a
new digital information or
asset transfer model. The
Created in 2014.
blockchain can facilitate, for
example, the emission and
Previous funding: transfer of financial shares,
5 million euros
vouchers, mobile credit and
in Kiss Kiss Bank
Bank, February also fully secure immediate
2016. transactions.

Country: France.

10 Mobile Financial Services Mobile Financial Services 11

The word on the street…
The banking
revolution has
begun
■ Bank accounts and the
weather channel are in the top 3
applications checked daily
(in France).
■ 1 in 3 new bank accounts in
France are opened with online
banks.
■ There are 2.5 million online
bank users in France today.
This figure represents 1% of
retail banking turnover and is
growing by 15 to 20% per year.
■ In the new technology sector,
the highest levels of investment
and growth are to be found
in the fintechs: 20 billion euros.
■ In 2009 there were around
fifty fintechs worldwide. Today,
12 Mobile Financial Services
there are over 3000 fintechs
based in London, Boston and
New York.
■ There are three main fintech
categories:
- Lending Platform
- Consumer Banking
- Payment
Although many do not provide
major technological innovations,
they are often groundbreaking
in their customer approach.
■ Funding circle generated the
highest fund raising in 2015:
150 million
■ London claims to be the
fintech world capital: in
November 2015, George
Osburne, Finance minister
declared, “the race has begun,
and we are determined to win it”.
■ Jibun Bank, a JV created have announced their 2016
in 2009 between the Japanese mobile payment solution
telecoms operator, KDDI, and Ja- in China, in partnership with
panese leading bank, Tokyo-Mit- China Union Pay.
subishi UFJ, attracted 1.5 million
customers – 60% of whom were ■ Google’s mobile payment
under 39 years of age. system, Android Pay, has
been launched in Australia.
■ KPMG forecasts that online
mobile bank users will double
in 2019 to 1.8 billion. This
represents a quarter of the
world’s population.
The GAFA offensive
■ Paypal’s online payment
system - Paypal One
Touch - has attracted 10 million
users and is available in
23 countries.
■ Apple Pay and Samsung
Pay are using their synergies
in Asia: the global giants
Your notes

14 Mobile Financial Services Mobile Financial Services 15

 Orange
Cash
with Visa

Orange Group Mobile Financial Services - February 2016