Transcript Mobile Payment Forum of India

Business Model Sub Committee
Final Presentation, Feb 16th 2008
Sanjay Bhargava, Chairman, Eko Group
[email protected]
 “A
business model is a conceptual tool that
contains a big set of elements and their
relationships and allows expressing the
business logic of a specific firm. It is a
description of the value a company offers to
one or several segments of customers and of
the architecture of the firm and its network
of partners for creating, marketing, and
delivering this value and relationship capital,
to generate profitable and sustainable
revenue streams.” — Osterwalder, Pigneur
and Tucci (2005)
A
resource for innovators
 Key inputs from coordinator
 Five Model inputs from champions
 Driven


by National Goals
Financial Inclusion
Anyone can be a merchant
 Rs
1+1%
 Rs 4 per month platform fee
 Consumers



One time fee – Rs 100
Four free per month. Extra Rs 2
Twenty free per month. Extra Rs 1
 Re
1 on 10million is 1 crore
 Win-Win if all players think critical mass
 Monetization


Advertising
Other streams
• Compensation
• Rev Share
• Fees (pass
through)
• Role
• Connectivity
• VAS
• Compensation
• Fee
Telcos
• Role
• Technology
• Operations
(BC Model)
• Customer
Acquisition
• Customer
Service
(Agents)
Telecom Gateway
• Compensation
• Float
• Risk Spread
• Interchange
• FX
Payment Gateway
Bank
• Role
• Customer
Ownership
• Risk
• Role
• Connectivity
• VAS
• Compensation
• Market
Growth
• Market Share
• Fee
RBI /
TRAI
Airtel
SBI
Payment
Gateway
Telecom
Gateway
ICICI
CBoP
DB
IDEA
 Competition
and innovation will determine
sharing
 Regulators to step in if large incumbents
block innovation
 Encourage


Unbiased TRAI, RBI, IIT, MOF, PMO
Secretary, Financial Inclusion
 Change



Attitude
Take appropriate risk
Avoid paternalism
 Goals

Innovation – National whitepaper
for Banks by March 2009
10 million users
100 million payments
 Sub
Committee no longer needed ?
 Discuss Action items and set deadlines – the
citizen is waiting and the clock is ticking
 Forum to monitor progress against goals ?