masspay
TRANSCRIPT
mobile payments for everyfone
Henryk Kulakowski, CEO, Founder
MASSPAY is a pure software mobile payment system that works today on any
phone with unmodified headsets and none of the disadvantages of SMS or NFC
While recognized, validated needs for cash replacement exist, only
complex, limited, and niche solutions have been proposed
with no sustainable business models
MASSPAYWithout involving new parties, or infrastructure upgrades, MASSPAY turns ANY mobile phone into a universal and ready-to use transaction instrument, TODAY
opportunity
the problem: cash is (still) king
8 out of 10 payments are cash transactions
9 out of 10 people have mobile phone
and
How to use mobile to compete with cash payments:(1) with minimum new investment, while (2) avoiding undue complexity, and(3) avoiding niche mentality?
the solution
1. Scan the merchantsticker or dial the number
2. Confirm transaction details & authorize the payment
3. Receive confirmation
221003521
MASSPAYPayment $3,99to Coffee Heaven, Market Str. SF(221003521) from HSBC account($2294)Accept by PIN:0-options
3247
MASSPAYPayment $3,99to Coffee Heaven, Market Str. SF(221003521) isprocessing. Pleasewait for SMS confirmation
MASSPAY123456789012Payment $3,99to Coffee Heaven, Market Str. SF(221003521) accepted. Free cake at nextorder over $5!
from any phone; dedicated app optional
the vision
if you know how to dial
you know how to pay
transaction types
paymentcash
withdrawal
cash inmoney transfer
money remittance
E/M-commerceE-ticketE-parking
InApp paymentphonetopups
Smart/Hbb TV
E-commerce
Tablet
SmartphoneFeaturephone
POS
ECR
ATMM2M
BroadcastTV/Radio
Printed media
payment
possibilities
Merchant (Payee)Acquirer
Issuer (Bank)
Clearing &settlements
30% of fee
10% of fee
MNO
business modelConsumer (Payer)
system architecture
masspaycore system
VISIONACards Management System
Merchants Management System
Profiles
Transactions
Accounts
Clearing & Settlements
Issuer(source of funds)
Payers
Payees
WebServices
USSD/Internet
ISO8583/WebServices
the team18 industry professionals, 6 widely recognized leaders
Previously with T-Mobile, Nokia, Microsoft, Huawei FirstData, mPay, GTECH, VISA
Team: Marketing (1), Sale (1), International development (1), Operations (4), Finance (1), System Architects (2), Software Developers (5), Project Manager (1), Board Assistant (1), CEO (1)
the market
6.8B mobile
subscriptions
30%
smartphones
with active
mobile Internet
NFC
iOS,
Android
875B cash transactions(2009, EU+USA)
18% non-cash
masspay
¾ of the population doesn’t use smartphones
Source: Google 2014
Source: Comscore 2014
Terminal penetration & payments methods
Mobile phone penetration: 150% (at saturation)
Traditional handsets in majority, 70% prepaid, no
data plan
Estimated market segment size
30
20
10
100%120
37
63
14
34
66
133
30
55
56
17
41
21
72
28
18
94
690
80
70
60
50
40
92
8297
3
72
98
2
679
99
1
6310
Market segmentValue (PLN
MM) Comm %Revenues(PLN MM)
Supermarkets, retail chains 80,000 1,0% 800
Small stores 500,000 1,3% 6,500
Parking 200 5% 10
City Transport 3,200 4,0% 128
Public Transport 3,700 2% 74
Tolls (highway, bridges) 6,570 2% 131
Vending machines 1,000 5% 50
E-commerce 16,000 1,5% 240
E-commerce digital/micro 500 3,0% 15
Bill payments 57,000 1,200
Airtime topups 3,600 4,0% 144
Total 621.770 9.292
Cash share of payment transactions – 92%
Estimated cost of cash processing – 1% of GDP
Accepting
cards
~184K
Not
accepting
cards
~1.09M
Total
~1.28M
USD 1.0 = PLN 3.1
5944
70
Poland
e-commerce
Retail payments
Lack of single scenarioUndue complexityLack of universality
Immature infrastructure
Competition is extremely fragmented, requiring new handsets or SIMs, software downloads; and limited to certain networks
P2P transfers
USERS MERCHANTS
o Simplicity, intuitiveness and convenience
o Single transaction scenario (e.g. online & offline use cases)
o Affordabilityo Bridging the digital divide
o Increased revenues – no lost sales, promotional & loyalty channel
o Reduced operational costs - in cash handling
o Low investment & operational cost, modest implementation effort
o Security and reliability -guaranteed payments
the benefits
IP protection
• Four original inventions
• Patents granted
– US, Algeria, Morocco, Ukraine, South Africa, New Zealand, Indonesia, Madagascar, Turkey, Columbia, Sri Lanka
• Patents pending
– over 60 countries
• Internet domains, trademarks
international projects (early phase)
USA
Mexico
Costa Rica
Russia
SouthAfrica
Poland / EU
EgyptNigeria
Mirek Kula, VP Business Development
Henryk Kulakowski, CEO, Co-Founder
THANK YOU