http://www.youtube.com/watch?v=Jk1FyAiLPM4

Mobile Money Global Conference & Expo

Intercontinental Hotel, Dubai

November 1-2, 2011

Emerging Markets

• Regulations• Taxes• Banking

Institutions• FX • Habits & Customs

Emerging Markets Pose Unique Challenges

• Low Transaction Volume• Unbanked Population• Limited Access to

Technology• Cash Society• Security• Infrastructure

Several Countries

All countries are different but share similar issues for M-Money/M-Payments

MNOs

Agent Networks Link Users And M-Money Providers

TECHNOLOGY – TELECOM INFRASTRUCTURE

MNO’s

BANKS

UTILITIESAGENT NETWORK

REGULATORS

Agents Face Certain Limitations To Be Solved By Distributors

Big Cash Collection Effort

Training for Agent Employees

New Products

Limited Working Capital

Large Disbursed Sales Force

Low Margin Products

Small Transaction Amounts

Lack of Technology At Point of Sale

An efficient and large agent network requires a large capital investment and commitment to address all challenges

To Be Effective In M-payment/ M-money - You Need Agents

Movilway decided to leverage Air time top up to build a network

Movilway’s distribution network will reach 14 countries and 325,000 POS in 2012

• Active in 10 Countries

• 68K active POS growing 15% monthly

• 350 employees

• 650,000 transactions daily

• Largest distributor of electronic top-up in LATAM

• Operational since April 2010

• Proprietary POS

• Leading technology platform

El SalvadorCosta Rica

Venezuela

Colombia

Brazil

Uruguay

Argentina

Chile

Peru

Ecuador

Panama

Nicaragua

Guatemala

Mexico

USA

Dominican Republic Pto. Rico

Regional super agent offers several advantages

• Economies of scale (Technology/POS)

• Strong balance sheet CREDIT LINES

• Regional deals with multinationals• Cash Collection

• Agnostic M-Mobile Distribution

• Regional Deployment

• Create a franchise model for agents and distributors to

increase reach by providing best practices adapted to

local countries

• Strong player able to work with any bank

• High level standards and team capable to meet

supervisory standards & work with regulators

Movilway Strategy

Build an electronic payment network targeted to the unbanked populationAgent by Agent- Distributor by Distributor

PHASE 1

• Air Time Top Up

Develop Agent Network Deploy Technology Implement Collection

Process

PHASE 2

More Products:• Utilities• Lotteries• Electronic PINS

More Services:• Microfinance• Insurance• B2B

Increase Agents Revenue Enhance Agents Loyalty Optimize Agents Reach

PHASE 3

Cross Border Services:• M-Wallets• Int. Remittances• Cross Border

Payments

Build Agent-Customer relationship

Adapt to international regulations

So how we address these issues…

Agent Support Is Essential

Agents need to be supported by a reliable Back Office, Call Center and a Strong Collection Work Force

Loyal / Profitable / Motivated

AGENT

OFFERING MORE SERVICES AND PRODUCTS

• Train Agents• Technology Update

• Cash Collection

Work Force

• Process Request• Reconciliations• Commissions

Back Office

• Service Agents• Additional Training

• Trouble Shooting

Call Center

Technology Has To Be Available And Easy To Use

Technology at the point of sale is a key enabler of Mobile Money • Low Cost• Mobile• Reliable• Secure• Adjustable

Monitoring

• Reports• Customized

Interface• Alerts

Low Cost POS

Plus Multi-Access Points•Web•Cell•IVR•SMS

Support Platform“State of Art”

• UTIBA• NAP

Working Capital

ELECTRONIC PAYMENT PRODUCTS

Generate foot traffic and high levels of revenue

But they have low margins and agents

prepay these products as often as they can not to tie up

liquidity

This leads to:•Increase Collection Costs•Out of stock inventory•Difficulty to Expand Products

THE SOLUTION: Finance the Agent

Microfinance Institutions Banks

Agent

-generation

Welcome to the

Sample Solutions- UNIVERSITY

Developed and implemented a close payment loop in a university

Students are able to: • Pay Merchants• Cash In/Cash Out• P2P• Prepay Air Time and Other Utilities• Taxis/ParkingPlanned: Remittance/Mobile Money Transfer

Acquire merchants / Acquire students / Acquire services

- Wallet

Conclusion

• Agents are key for any M- Wallet initiative, a well positioned

Distributor will enable the introduction of a solution

• Movilway has implemented one of the largest Agent

Distribution networks in LATAM, that is agnostic to any

electronic payment product

• Multiple providers and partners are required, for products,

financing, regulation, technology and distribution.

• We believe in a partnership!

THANK YOU