An overview of features to drive growth in mobile wallets (social payments, instant purchases, personalized offers, balance coupons) and expansion opportunities into market categories: consumer app, rural economy, data and finance.
payments Product Growth Features that will drive growth in wallet usage • Social Payments • Instant Purchases • Personalized Offers • Balance Coupons Market Growth Potential features for growth in various segments • Consumer App • Rural and Informal Economy • Data and Finance Conclusion Challenges and Opportunities Overview
cash for transactions. The ratio of cash to gross domestic product is one of the highest in the world—12.42% in 2014, compared with 9.47% in China or 4% in Brazil.” Digital transactions are necessary Simpler, quicker, less expensive Less corruption and risk, both in commerce and government Enables online, distance, and recurring payments Convenience in shopping and purchase experiences Market Growth Product Growth Conclusion Mobile Payments (source)
Dropbox Music CDs iTunes, Spotify, Youtube Telephones Skype, Twilio Taxi Dispatch Uber, Ola Consumerization: infrastructure becomes data Financial transactions can be expressed as data Then communicated over the Internet or SMS Market Growth Product Growth Conclusion Mobile Payments (source)
TRAI, World Bank, Ericsson, Let’s Talk Payments 2009 Prepaid Payments Instruments 2014 Payments Banks Bank Accounts Debit Cards 53% 22% Mobile Phones Internet Access 79% 48% More access to phones than to banks Market Growth Product Growth Conclusion Mobile Payments
Segments Conclusion Market Growth Product Growth Mobile Payments Overview Product Growth Funds Products & Offers New Users Merchants • Social Payments • Instant Purchases • Personalized Offers • Balance Coupons Growth Features Network Effects Activity and Retention Differentiation Social Payments become more more useful with each new user. Offers targeting improves with more data. Funding the wallet balance encourages usage across many types of purchases and payments. Increasing Social Payments, Instant Purchases, and greater coverage in Products & Merchants helps avoid commoditization. Social Payments
amounts of money • Quick funds for shopping, phone recharge or metro cards • Splitting bills easily (one person buys movie tickets, the rest send their portion to them on the app) Building a map of social contacts (confirmed friends) in the app enables: • Social shopping: share with friends that you’re going to this movie • Social transactions: send money to a friend with a comment This creates virality (sending invites to non-users to sign up for the app) and social proof. Send Money to Friends Social Payments Conclusion Market Growth Product Growth Mobile Payments
payments to friends. Displaying friend birthdays would encourage the adoption of Gift Cards. Gift Cards Social Payments Conclusion Market Growth Product Growth Mobile Payments Sending Receiving • Gift sender picks a value between ₹200 and ₹20,000 • Sender provides recipient’s phone number (and optionally email address) and personal message. • We can partner with a provider to send a physical card to the sender or recipient. • If recipient is already using the app, send them an email, push notification, SMS • Otherwise try to send them an SMS and encourage sender to notify them that the gift awaits them in the app • Show sender if the Gift Card has been ‘claimed’ or not
family can pitch in means continuous money sharing in a specific wallet. Use cases • Parents enable kids to recharge phone balance, other simple purchases • A group of friends pool money to use the wallet to fund a trip or outing • A corporate fund for small purchases like food, stationery, etc. Simple usage • One person owns the wallet, adds funds, and adds or removes users • Added users make the usual purchases, with this wallet as a fund source Group Wallets Social Payments Conclusion Market Growth Product Growth Mobile Payments
balance, and potentially more information like location and other preferences. Using this information we can expand beyond phone recharge to add more Instant Purchases. Start with simple, dependable features • Cab booking • Movie tickets Example: booking taxis from within WeChat Instant Purchases Conclusion Market Growth Product Growth Mobile Payments (source)
Purchases: • Pizza and other food delivery • Deal of the day • Other controlled experiments using merchants with good logistics If successful, scale up Instant Purchases: • One click purchase for everything in the online or offline world • Can buy anything based on a code recognized by our app • Purchase items from TV or print (including tracking codes for referrals) Expansion Instant Purchases Conclusion Market Growth Product Growth Mobile Payments
Now, Cortana, Alexa • Messaging: Facebook Messenger, WeChat, Slack, WhatsApp • Notifications: smart watches, other devices Instant Purchases can be integrated into the assistant, messaging, or notifications. Example: Lyft car ride booked from within Slack. Future Ready Instant Purchases Conclusion Market Growth Product Growth Mobile Payments (source)
and lead generation. Initial personalized offers: • Based on city • Based on time or nature of day (lunch time, weekend, etc.) • Based on past purchases (discount on a restaurant) • Based on the price range of previous purchases Improve data engine and analysis by seeing which offers are claimed. Personalized Offers Conclusion Market Growth Product Growth Mobile Payments
• Alternate providers for financial products (credit cards, insurance) • Utilities (phone, gas, electricity) • Savings tips • Tools for generating receipts for reimbursements or taxes This will build the data analysis tools to expand into personal finance and potentially into the banking sector. Finance Personalized Offers Conclusion Market Growth Product Growth Mobile Payments
on the retailer’s part. People who buy the coupons can enter the code in their wallet app to add funds. Good for customers who: • Are young • Don’t have bank accounts • Don’t want to use online payments Balance Coupons Conclusion Market Growth Product Growth Mobile Payments (source)
who are economically middle class and above. Use cases • Convenience: purchases like phone recharge, bills, e-commerce, cabs • Offers • Expanding into in-store payments Heavily marketed through offers: cashbacks, discounts, contests • Drives ‘top line’ numbers: total users, transactions • But may lead to activity without retention, a.k.a a ‘Leaky Bucket’ Consumer App Conclusion Market Growth Product Growth Mobile Payments
added: • Digital payment on delivery (replacing cash on delivery) • Metro cards, airplanes and trains, other travel • Donations to NGOs, political parties, other crowdfunding • Bulk purchases (Offers) • Online services and digital products (courses, etc.), purchases in apps • Vending machines and other automated machines • Newspapers and magazines, anywhere this is a distributor in the middle Bills • Rent and other bills • Government fees and other bureaucracies Conclusion Market Growth Product Growth Mobile Payments
languages • ‘Lite’ app or mobile site for low-end phones • Solutions for ‘no internet’ situations (SMS, Phone calls) • A way to withdraw the balance in cash • Remittances • Integration with government benefits • Basic information services Rural and Informal Economy Conclusion Market Growth Product Growth Mobile Payments The app can enable payments for: • On demand workers (delivery people, etc.) • Service economy (housekeepers, etc.) • Day laborers: carpenters, plumbers, electricians, etc. • Autorickshaw drivers, other people offering quick services for cash
purchases: • Easy access to transaction history, invoices, receipts • Group and corporate payments, expenses and reimbursements Expanding into personal finance (like Mint.com) • Spending analysis and suggestions • Targeted offers and recommendations • Simple ways to build savings • Further financial services Consumer Side Data and Finance Conclusion Market Growth Product Growth Mobile Payments
Quick info on payments received, latest deliveries and receipts • Loyalty programs • Support for growth and customer flow • Inventory management tools Further services • Financial programs to manage cash flow and liquidity for inventory Merchant Side Data and Finance Conclusion Market Growth Product Growth Mobile Payments
For Consumers For Merchants • Don’t have to share card details • Don’t have to worry about change • Don’t need to setup card hardware • Simpler integration than gateways • Alternative to ‘cards on file’ For all parties • Safety: don’t have to carry cards or cash • Fewer intermediaries requiring custom protocols, deals and paperwork • Faster than clearing cheques • Always available (no timing or location dependence) • Can enable very small transactions and micropayments
in China don’t even bother talking about ecommerce, you guys don’t have the business infrastructure for it… Precisely because China’s business infrastructure was poor back then, and because in China we didn’t have this and that, when the internet came we used the internet to really mature and complete the business infrastructure.” The Story Unfolds Jack Ma, Alibaba Group (source) Conclusion Market Growth Product Growth Mobile Payments (source)
they can move both downmarket and upmarket. Downmarket, they can expand into the informal economy and remittances. Upmarket, they can disrupt the banking sector. Conclusion Market Growth Product Growth Mobile Payments Firas Durri [email protected] twitter.com/firasd linkedin.com/in/firasd Unbound Potential
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