Your Gateway to mCommerce

1. Your Gateway to mCommerce

2. MobiFin-A Mobile Commerce Evolution An extra ten mobile phones per 100 people in a typical developing country leads to an extra half percentage point of GDP per person growth… …. Leonard Waverman MobiFin Plastic money Coins Barter

3. MobiFin Overview MobiFin supports major industry standards such as ISO 8583, SOAP-XML, XML RPC, WSDL 1.0 and 1.1 1.2 and custom protocols. MobiFin solution from Panamax helps service provider to integrate with various operators , banks, wholesaler/retailer and financial institutions for core services which mainly includes Mobile recharges, banking, financial services etc.. Service operator will be able to extend this service into various channels like Reseller Networks, POSA Providers or Web Portal MobiFin solution has got the edge over existing solutions in this domain because of it’s economical and ubiquitous, Flexible & Scalable nature. MobiFin empowers a service provider with a set of distinct features that provides an intuitive and convenient way for managing service channels with various interfaces under single roof MobiFin is a unique Mobile based Transaction Management System that acts as a highly versatile intermediate platform. It enables service provider to diversify business by provisioning core services like Recharges, Banking services, Sales and Support to various channels.

4. MobiFin - Opportunities Mobile Top-Up Utility Payment Mobile Money Int. Remittance Mobile Banking Lottery/Betting mTicketing Loyalty Micro Finance Single PIN Multi Top-Up Insurance

5. Service’s at a glance

6. Why MobiFin ? Problem Solution

7. Solution Architecture

8. MobiFin – System Interfaces

9. Service Flow Mobile Account Wallet (Bank) Services Top Up Services Remittances Serices Bill Pay Settings Wallet Transfer Mobile Top Up Domestic Remittances Electiricity Change Password Bank Transfer Internet Top Up International Remittances Tax Collection Change Transcation Password Load Money from bank Account DTH Top UP Loan Payments Check Balance /Statement School Fee Payment Merchant Payment

10. Mobile Top-Up Utility Payment

11. Recharge Card Challenges Operator Challenges Channel Member Challenges Customer Challenges • Time to market • Cost of printing • Transportation and storage • Damage in transit, theft, and fraud • Limited visibility on distribution channel • Revenue realization • Geographic coverage • Stock availability • Higher investment in stocks • Time lag in stock arrival • Storage • Dependence on the channel members • Availability of the preferred denomination

12. mTopUp Advantages Issues with traditional mobile recharge system * Voucher recharge is expensive, fraud prone, with logistics challenges * Recharge cards are unfriendly * Additional expense on paper, printing, distribution and customer care on these cards * Agents wish to deploy low working capital, more efficiently • mTopUp Advantages • Multi-channel PIN & PIN-less Top up • Multi Operator Single PIN & PIN-less Top up • Device & network independent • Self Recharge • Retailer Recharge • Bulk Recharge (API) • Balance Transfer (MNO) • Bill Payments (Utility) • Top up Via Banking Transaction

13. Services Feature Requires Banking Integration

14. MobiFin Apps MobiFin provides Application for Java Symbian Smart Phone (Android & IOS) Blackberry

15. MobiFin – Distribution Management MobiFin provides a Flexible and easy way to make and manage distribution channels. MobiFin platform offers CSR(Customer Service Representative) and Distributor Mobile Apps which allows to create and manage Agents/Retailers in real-time. Upon successful creation of Agent , Agent will receive E-mail and SMS with the Credentials. CSR/Distributor can transfer E-Value to agents account and Agent can perform Transactions. • MobiFin platform support a Distribution channel up to 16 Levels. Also , allows to Create a Distributor. Distributors can have their own Mobile Applications and Web portals through which they can Create and manage agent/Retailers under them. They can set the desired Products and commissions to the agents and control their business. MobiFin also allows real-Time reports which shows on going transactions and Commissions.

16. Channel Management Feature Allows an Operator /Service Provider to Define N-level Distribution Hierarchies Add/Modify/Delete Channel Users • Channel entity in a domain (configurable) • Distributor • Sub-Distributor • Sales Agent • Retailer • Channel Category grades for different commission and control profiles • Channel user association with Area/Sub-Area for reporting • Create/Delete channel members in bulk • Transfer Channel member with down-liners in the same domain Multiple domains Multiple level channel hierarchy under a domain

17. Channel Management Feature Association Rules for Channel Domain Commissions Management • Commission profile for: • Operator /Service providers to Channel transfer • Channel to Channel transfer • Channel to subscriber transfer • Additional commission based on the consumption of service • Value of transfer • Parent association of a channel entity • Direct transfer from one channel entity to another • Allow/Deny channel bypass for transfer • Allow/Deny withdrawal of credit from channel entities • Allow/Deny return to channel entities • Activate/Deactivate services (e.g. Recharge, Bill Payment)

18. Retail chain tree policy management

19. Business Rule Manager Transaction Rules Retail Rules Sales Rules Daily/Weekly/Monthly Transaction Control Retailer Service Rules Sales Service Rules Daily /Weekly/Monthly Amount Control Retailer Amount Rules Sales Amount Rules Daily /Weekly/Monthly Service Rules Retailer Transaction Rules Sales Transaction Rules

20. Mobile Money Int. Remittance

21. mTransfer The Mobile Money ecosystem consist of Bank , Agent and End Users. Banks being the Financial institutes provides all the Financial features. Agents and End Users can access the Services which Banks provides after the Integration with MobiFin system MobiFin system ensures smooth Agent and User registration process with KYC status at mobile application and web portal levels, If the KYC is in-complete , the Agent or User will receive alerts for defined time and then the MobiFin system will automatically Block them ensuring that no any Transactions are done without complete KYC. The Consumer and Agents needs to be registered on the Platform and complete the KYC process to start using the Mobile Money Services. Mobile Money allows banked as well as unbanked people the ease to Send and Receive money without any hassle. The Mobile Money concept has transformed many countries from Cash based market to Cash Less market.

22. Mobile Money for Agents (P2P) Receive Money allows the End User to convert their eValue in to physical cash. In this case , The End User has to transfer the evalue in to Agent’s wallet and get the physical cash on confirmation of the same. Receive money request are generally initiated by the End Users from their mobile Devices. They can initiate the Receive Money request either from USSD or SMS. Upon successful Transaction , The user and the Agent gets notifications from provider and user gets the physical cash from Agent. The agents/retailers have mainly have two services for Mobile Money users. Send Money Receive Money Using Send Money , the Agent can load money into the End User’s Wallet. Basically , the End User providers physical cash to Agent and ask agent to transfer eValue into his/her wallet. Below snapshots providers graphical view for the same

23. Mobile Money for End User The below snapshots describers the steps involved in User Application to perform Transfer The End Users can avail lot of benefits from the Mobile Money services. It allows them to Send and Receive money easily without using any banks services. The user needs to register and perform KYC process to active Wallet on MobiFin system. Once the Wallet is Active , User can start leveraging the various services provided by MobiFin system. The End Users can access various services like Wallet to Wallet transfer , Bank to Wallet and Wallet to Bank transfer , Merchant Payment , Top-up , Utility Payment and Ticketing from single Wallet account. The Wallet consists of three main Money Services : Bank to Wallet Transfer Wallet to Bank Transfer Wallet to Wallet Transfer

24. Mobile Money for Merchants (M2M) Mobile Money can play vital role for the Merchant when it comes for collecting cash from consumers. In many cases , Merchants have distribution channels under them and collecting cash for the supplied Goods becomes tedious job. The MobiFin platform allows Merchants an easy way to achieve the same. Merchant can register their own distribution channel on MobiFin system and enable Cash less transactions through Wallet transfers. FMCG Distribution, Bars, Restraunt’s, Shopkeepers , Malls , Super Markets Etc. can also facilitate their consumers to make payment towards their purchase through Wallet. Upon successful payment , Consumer and Merchant can get E-mail or SMS notifications.

25. mTransfer Advantages Issues with traditional Remittance process * Son works in city; remits money to family in village via informal channels * Traditional rémittence infrastructure not available • mTranfer Advantages • Agents use mobiles to send & receive money, via prepaid accounts held with service provider • Network of Remittance Agents use mobiles to Transfer money • Senders remit money via cash through Agents/Retailers or bank • Recipients collect cash at local Agent/Retailers • Money Cards for Senders who might not have mobile

26. Dynamic Charging Management

27. Participants in Ecosystem

28. Operational Flow

29. Operational Overview

30. Subscriber to Subscriber Transfer (P2P) • Register for the P2P service to transfer virtual amount. • Initiation of Transfer • The sender initiates the transfer through SMS/USSD/WAP application • The SMS/USSD/WAP application that contains the keyword, receiver’s mobile number and amount of transfer . • The sender confirms transaction with Mpin secured transaction pin for secured transaction • The sender shall also receive the transaction ID , amount and the mobile number of the person for the transaction done • Transfer Processing & Controls • Determination of service profile and checks for ‘no bar’ status of both entities • On successful transfer, the sender and receiver would receive a confirmation message • The receiver would receive the sender’s Mobile number, amount transferred and the transaction id • The sender would receive the transaction confirmation with the receiver's name/ Mobile number , transfer amount and transaction id on success • Debit sender's talk time account from the IN and Credit receiver’s account using charging system interface in case of MNO lead model or shall be in the form of virtual wallet credit.

31. Mobile Banking

32. Changing Scenario of Banking Changing customer needs together with major advancements in technology are transforming the banking landscape. Customers now expect a broad portfolio of personalized offerings and convenient, multi-channel access to banking services At the same time banks’ traditional dominance of the banking market is being challenged by new players, such as mobile operators, mobile device manufacturers, online payment processors, and location based service providers - many of which are launching innovative financial products riding on digital technology Banks must keep pace with changing consumer needs and increasing competition to remain relevant to their customer base and retain their leadership in the market for Banking services  At the same time, banks must cultivate their top line and improve overall performance. To fast-track revenue growth banks need to increase product uptake amongst their existing customers and extend service reach to unbanked segments Many banks are looking to meet these challenges by adopting mobile banking as a means of delivering cost-effective, omnipresent banking services to a wider audience - and as a route to providing convenient, secure, personalized mobile banking services. Upholding profit margins necessitates an increased focus on driving productivity - reducing the overall cost to reach out the customers

33. mBanking for Banked Customers • Mobile phone used as banking terminal • Menu driven application • Bank-grade security MobiFin -mBanking solution enables banked customers to access banking services securely from their mobile handset, both to seek account information & to perform financial transactions. The solution integrates seamlessly with existing banking & telecommunication infrastructure Bank customers are provisioned on the system to access their account and carry out transactions like  Notifications and alerts, Bill payment, transfers and transactions, Account and wealth management & Financing: credit, loan, insurance

34. Service provider lead Business model • Bank offers Mobile Banking to their customers Bank holds all Bank Accounts in their systems • Bank earns Transaction Fees, Commissions or subscription on service packages • Service Provider processes mBanking transactions on behalf of banks (integrate their system with bank) • Serves multiple banks & enrolls merchants • Provides back end technology, handset application & connectivity with all mobile operators • Service Provider manages e-Top Up for all Mobile Operators as their distributor & utilize existing relationships with utilities for Bill Payments via mobile

35. Participating Bank/Financial Institute A Bank would either directly be the MBSP, or would have equity / contractual relationship with MBSP The bank is responsible for obtaining license for the service, regulatory compliance, facilitating inter bank transfers & settlements, forex trading license (if cross border remittances are offered). If the bank, MBSP or the licensor so requires, then the micro banking system can be integrated with the bank’s IT systems to create ‘real’ bank accounts behind each subscriber m-Wallet. All transactions are then performed at the bank host, and the micro banking system serves as a proxy, providing secure access via user’s mobile phone.

36. Mobile Banking Services Account Information Payments, deposit, withdrawals, and transfer • Payment • Mobile TopUp • Utility Payment • Mobile Ticketing • mWallet Services • Cash IN from Bank Account • Cash Out to Bank Account • mWallet Statement • Wallet Money Transfer • Banking Services • Mini Statement and checking of account history • Alerts on Account Activity or passing of set thresholds • Access to card statement • Cheque Book Request • Recent Transaction • Add / Remove Bank Account • Bank Fund Transfer • Locating nearest bank branch, ATMS • PIN Provisioning or Change of PIN • Deposit / Withdrawals • Deposit at Banking Agent • Withdrawals at Banking Agent

37. Operational Overview • Create vendor (bank / mobile operator) • Create prefix per vendor • Create different service packs with different product mix per pack • Create fees per pack or per product • Begin selling to subscribers • Allocate service pack to subscribers • Subscriber registration Links mobile number to account number(s) • Create inactive account • Sends application to subscriber, with confirmation • Send MPIN • Customer changes MPIN, account becomes active Customer profile stored against unique Account ID (internal parameter) Account ID mapped to MSISDN & bank account No loss of profile if MSISDN changed Customer authentication required before MSISDN change in profile

38. mBanking -Features • Account Balance Check / Query • Cheque Book Requests • Stop Cheque & Card Payments • Funds Transfer between own / other accounts • Payments to Merchant Accounts • Pre-paid top-up of own & other phones • Bill Payments & Utility Services Payments • Salary Disbursements • Stock Quotes • Last 5 transactions • Payment for these transactions via direct debit of bank account or credit card • Alerts & SMS push/pull messages

39. Mobile Banking Ecosystem

40. mBanking Advantages IIssues with traditional banking process * Time and space specific access to the banking service * Banking is cumbersome due to limited branches & ATM, no computer & Internet for online banking * Mobile phone is his primary device • mBanking Advantages • Enable full banking services on any mobile, with full security with all following features on a single click of a mobile • Register • Check Balance • Get Statement (Mini Statement) • Transfer Funds • Make Payments • Stop Cheque • Request Cheque Book • Change Password

41. Micro (Agent/Branchless) Banking This system allows people to open virtual bank accounts (mwallets) at authorized retail outlets (Banking Agents), move real money (not airtime as a pseudo currency) between these accounts, and make payments for goods & services to merchants, using their monies in this account. A neat feature allows salaries to be credited directly into these accounts by employers. This offers enormous potential to open new markets and business opportunities for service providers, banks, mobile operators & merchants! Micro Banking Advantages • Agent with mobile is Human ATM • Provides doorstep banking with minimal infrastructure • Open a limited features account at local retail outlet • Your mobile number is your account ID • Deposit & Withdraw cash at local retail outlet • Transfer money & make payments

42. Micro Banking Features • Makes banking available at retail outlets • Secure way for un-banked to save their money • Cash in & cash out (at ATM or retail outlet) • Person to Person money transfers o Registered / unregistered to registered / unregistered • Long Distance Remittances: domestic or foreign • Pre-paid mobile Top-Up: own or other’s phone • Person to Merchants payments for purchase of goods / services • Disbursement of salary by employer into micro banking account • Loan installment repayments using funds in micro banking account • Bill payments • Balance check • Check Last 5 Transactions (mini statement) • Change M-PIN • Salary credit into m-Wallet by employer • Additional functionalities can be added as per requirement of the Service Provider, regulatory requirements and availability of appropriate API at the Bank host system.

43. How does it work - Security Standard Firewall Firewall CryptographyAlgorithm Internet HTTPS SSL 3.0 HTTPS SSL 3.0 CryptographyAlgorithm CryptographyAES MD5 and SHA1 check sum generation algoritham HTTPS SSL 3.0 • Security application components • Database Cryptography • Digital Certificates - SSL • End to end transmission Cryptography • Two different authentication processes • Ethical Hacking Test (Vulnerability Assessment) • Self destruction in case of loss, theft or a password mistake. • User vs personal device (only a specific user ID can use a specific device) IP Sec VPN ISO 8583 Bank SMSC

44. Mobile Banking SMS Alert Notification SMS Contact Entry Points Delivery Path SMS Modules MobiFin Customer Relationship Management Opt in Customer Subscribers • Alerts • Transaction Alerts • Cheque Bounce Alerts • Cheque Paid Alert • Clearing Cheque Alert • Standing Instruction • Bank Dispatch SMSC Gateway Present Offer Invitation Bank Solicit Subscription Carrier Transmission Queries Customer Request Information Utility Information Customer Notices Rewards Customer Handset

45. Mobile Banking Consumer Registration Consumer Un bank Consumer Approaching Authorized Banking Agent in their area BANK Processed Enrolled Data – Personalized baking details - Verification MobiFin System receive data – dedupe check and send information to Bank. Banking Agent Enrolled the consumer – Pre data validation – KYC FORM – Opening Bank A/C Fees and will provide receipt. Dispatch Consumer

46. Salary Disbursement to m-wallet • More secure vs. receiving cash salary • Enforce timely payment of salary • Reduces corruption in cash disbursements • Employee gets full amount automatically from central disbursement authority • Ideal disbursement mechanism for employees in remote areas

47. Architecture Secure ANI IVR ISO 8583 Consumer https Firewall WEB Firewall Provider 3DES / AES ISO 8583 Mobile App https Bank SMS / USSD Consumer

48. Security

49. Scalability, Redundancy & Hardware Architecture Scalability Redundancy Hardware and Software The solution is an distributed architecture that makes it highly scalable. Technically, there is no limit to the number of users the solution can support. Handle peak traffic reliably and efficiently. Deliver high availability, and therefore, better customer service and reduce lost revenue Deploy as you grow Redundancy can be provided at each tier, in an active-active model, and as an active-passive model, with one node serving as a standby or backup. At the DB tier, SQL proxies (MySQL™) – live replication of MySQL DB supported. Geographically DR site – in order to avoid DR event with no affect to the total operation. Specific preferences follow: Hardware Application Server: Dual Quad Core Intel Xeon Processor 55XX Database Server: Dual Quad Core Intel Xeon Processor 55XX Operating System – RHEL 5.5 – 64 bit or Centos 5.5 – 64 bit

50. AML Float Rule Manager It Controls float transfer in-out of MobiFIN platform MobiFin has In built Business Rule Manager. It can support various rules according to business policy or regulatory requirements. It can also be used to block fraud rant transactions. Transaction Rule Manager It Controls transaction control in-out of MobiFIN Platform