Challenges & New Opportunities in Mobile

Money Transfer:

A Case Study in the Implementation of GCASH

17 March 2010
Paolo Baltao
Outline:

GCASH Refresher

Top 3 challenges for Mobile Money Transfer (MMT)

How can multi-sided networks be increased?

Leveraging on existing infrastructure to develop the network

How can mobile banking be more successful?

GCASH Refresher

GCASH facilitates the transfer of money with just a text message

• Convenient. As easy and as fast as sending SMS
• Secure. Requires an MPIN to authorize a transaction, whether it be a cash out, person to person
transfer, or payment
• Safe. GCASH remains intact even if the mobile phone is lost or stolen. What’s more, all transactions
are logged and reported.
• Compliant. Satisfies the requirements of the BSP and local Anti-Money Laundering Laws (including
daily and monthly transaction limits, regular audits, and reporting of covered and suspicious
transactions)
• Cheap. Customers only pay the SMS fee of Php 2.50 for each transaction.

From:2882 From:2882
You have sent You have received
5,000.00 of GCASH 5,000.00 of GCASH
to Pedro Santos. from Juan Dela
Your new balance is GCASH Transfer Cruz. Your new
6,089.00. Ref. no. balance is 1,103.00.
4434334 Ref. no. 4434334
GCASH Ecosystem

Cash In (Cash to GCASH) Cash Out (GCASH to Cash)

GCASH GCASH
Accepted Here Accepted Here

More than 3,000 More than 3,000

Physical Exchange Physical Exchange
Outlets Outlets

Pay for Bills and Purchases or

Buy Airtime Load
More than 3,000
BancNet ATMs

Mobile Banking
Top 3 challenges for Mobile Money Transfer (MMT)
1. Building ecosystems is the biggest challenge but also the greatest
opportunity

Remcos Com Banks

Rural Banks
B2B
B2C Merchants &
Utilities

Individual Subs C2C Online

Community

Many intersecting applications around C2C, B2C, and B2B opportunities

 Which partnerships can give best value to your customer

 Which partner set can complement your capabilities best

Top 3 challenges for Mobile Money Transfer (MMT)
2. Partnering to increase traction and opportunities to scale over the long term

Rural Banking Industry

Globe
GCASH

Western Union’s 1st MMT pilot

USERS

Local
Partner
Merchants/
Entity
Remittances Ecosystems

Savings
Loans
Bills Payment
Insurance
Payments
Top 3 challenges for MMT / Increasing multi-sided networks

3. Increasing intermediaries: Merchant model

• Partnering increases scale quickly with lower cost

• Non-exclusive arrangements allow greater acceptance
How can multi-sided networks be increased?
Increasing Banking intermediaries to converge with MM: Rural bank model

• Allows mobile banking services greater reach and relevance into the Mobile Money
ecosystem
• Provides access to savings accounts
Leveraging on existing infrastructure to develop the
network
Customer Segments + Mobile Network + Applications + Intermediaries =
Productive Ecosystems
How can mobile banking be more successful?
Video Presentation: Successful Ecosystem Case, Cantilan Bank
End of Presentation

17 March 2010
Paolo Baltao