Page 39 - State-of-the-Industry-2013

Part 1 - mOBile mOney

gaining ground faster due to less constraint for growth. According to Eric Barbier, the use cases have interesting diferences: while a
customer of TransferTo makes transfers worth below USD 20 on average 3 times a month, people who remit money home usually do
so once a month and send larger values.

CAN INTEROPERABILITy BE A GAME CHANGER FOR INTERNATIONAL REMITTANCES?

Finally, the lack of interoperability between diferent types of accounts (bank accounts and mobile money accounts for exam-
ples) and between diferent mobile money schemes domestically, seems to be a hurdle for the development of international
remittances over mobile money.

Daniel Aranda shared with us how Ripple Labs is trying to address this problem. Ripple Labs created Ripple, an open source protocol
for payments, similar to SMTP for email. This is done using a large distributed and decentralized network and allows for autonomous
settlement for any kind of asset. In theory, this system allows people to send money to anyone, anywhere, and in any currency.
Perhaps the greatest promise of Ripple is that these transactions can be executed with a much lower cost than what we see today,
almost for free. As costs still are high for international transfers and remittances, this is an area where innovation can make a big
diference for customer uptake.

With the growing willingness of the diferent entities within the fnancial ecosystem to interconnect, and innovations like Ripple
being developed in parallel, we seem to at the beginning of a long path towards healthy global interconnected systems.

* This text box is based on a blog post by Claire Pénicaud (MMU) that was published on MMU website on November 7, 2013

Figure 8
ProDuct offering (June 2013)

0.0% 1.0% 2.1%
100% 2.1% 2.1% 6.0% 10.2% 4.1% 4.1% 5.3%
2.1%
11.7% 11.0%
90%
80% 28.5% 28.5%
70% 45.2%
60%
50% 95.8% 95.9% 94.9% 92.6%
86.2%
40%
65.5% 61.3%
30%
43.8%
20%
10%
0% P2P BILL BULK
PAyMENT
TOP-UP
REMITTANCE
TRANSFER PAyMENT PAyMENT MERCHANT INTERNATIONAL AIRTIME CASH-IN CASH-OUT

DO NOT OFFER THE PRODUCT BUT ARE DO NOT OFFER THE PRODUCT AND NOT
OFFER THE PRODUCT
PLANNING TO LAUNCH IT NExT yEAR PLANNING TO LAUNCH IT NExT yEAR

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