“mPowering”

a New economy

mCommerce Solution
from Dialog Telekom
Dialog mCommerce evolution
2002 First STK September 2007 -
Wallet Commercial launch of full
implementation mCommerce Services with
NDB Bank
Feb 08 Seylan Bank
Mobile Banking Jan 2003 joins eZ Pay with
available with 5 Banks implemented Credit Cards
including the largest electronic Top Ups
Commercial Bank in eZ Reload World’s 1st Multi
Sri Lanka. Services Network Bank mCommerce
include inter bank Nov 2003 Top Ups Solution launched
account transfers (Pre direct from Bank by a Mobile
registered) accounts Operator
3rd Bank onboard
eChanneling – (HNB)
Doctors channelling Various Payments,
Dec 1999 Flowers, Gifts etc. Sept. 2006 Top Ups direct
Mobile Banking charged to mobile
bill added to bill from Credit Cards. Bank
launched with
Union Bank of Purchase Life initiates the transaction
Colombo Insurance direct and the customer is
from the Mobile registered at the Bank
(Add to Bill)

1999 2001 2003 2005 2007 2009

Dialog Electronic Payments
• Sri Lanka’s pioneer mCommerce based electronic payment and banking
facilitation network

• Electronic Voucher Distribution Management System

– Over 350,000 transactions via 9,000 outlets per day
– Island wide reach
– POS/ATM/Bank counters as reload centers

• Over 1.4 Billion Rupees transacted per month

• Zero fraud over eZ Reload – Dialog’s electronic top up solution

• Already established mCommerce solutions

– Electronic Top Up, Wallet, Mobile Banking, Remote Payments, P2P Transfers,
Mobile trading

• Any Bank can participate and issue eZ Pay accounts

• Secure transactions – 3DES end-to-end security

Banking Inclusion

“An Immediate Dividend from

Digital Empowerment”
The Mobile Phone and e-
Commerce
• The Mobile Phone (and SIM Card) is a Powerful
Computing Device

• Unmatched Inbuilt Security and Authentication (Far

Superior to Internet)

• Electronic money (account) Culture Acceptance in Sri

Lanka
– Over 6 million Pre-Paid users are e-account “Savvy”
– Widespread Adoption of Electronic Top-Up by all Operators
– Electronic Top via more than 12,000 Electronic Merchants

• Potential to Extend to “Other” Electronic Accounts and

Transactions
M commerce Potential
• Empower the Average Citizen with Convenient and
“Immediate” access to e-commerce
– Widespread penetration of Debit/Credit (card) Merchants
– Payment Convenience
– Domestic Money Transfers
– Inward Remittance Facilitation

• Capture Full Potential of Inward Remittances

• Enable a broader market to enjoy the benefits of

core banking and value added banking products

• Deploy fiscal policy to a wider spectrum of consumers

M-Powerment ‘enables’
empowerment
M- Consumer
Powered e-Money + m-
Money

M-
Products Powered
and New
Services Consumer MM
digital

Banks
M-
Global Powered
Financial New
digital Merchant/
Services Service
Inclusion Drive Provider
M-
Powered
 The (Eco) System
Payment Networks, Cards

Banks
+ Global
Financial
Domestic Service
Financial providers
Service
providers

Financial Regulators
Adaptation and Sachetising (for
inclusion)
Payment Networks, Cards
Cards on Mobile as
SIM POS
Economics of
small
Low cost presence
transactions

Banks
Distribution
+ Economics of
Spread
Global
small transactions
Financial
Domestic Regulatory
Service
Financial Regulatory Competition providers
Competition
Service
providers
• KYC
Security
• AML ‘Adoption for
• Top Up/ Deposits inclusion’

Financial Regulators
Banking Inclusion
• Why are some people `Unbanked`?
– Access to Banking Infrastructure?

– Access to Payment Infrastructure?

– Limited by an `Un banked` Eco-system?

– Limited utility infrastructure?

– Support from regulators?

eZ Pay in Sri Lanka

“Merchant Network for mobile

Payments”
eZ Pay Overview

• Joint merchant network between Dialog Telekom and NDB Bank

• Open architecture aimed at connecting multiple banks and

their service portfolios to Sri Lankan consumers

• Secure Card present transactions by mChek

– 3DES Security
– Hosted at Data Center certified by VISA

• Founded on Dialog Telekom’s proven electronic top up network

• NDB Bank and Seylan Bank launched as Issuing Banks

• 2 other major Banks have already joined as eZ Pay

eZ Pay Starter Pack

• Customer needs to visit a Dialog

outlet and request for an eZ Pay
starter pack:
- eZ Pay SIM
- NDB Pre-paid account – VISA Enabled
- Connectivity to Seylan bank Credit card
system

• Once account is activated,

customers need to deposit cash
via an eZ Pay Top-Up Merchants
for NDB or starting using via
debit to credit card.
mPowered Banking

• “eZ Pay” account is linked to a Bank for instant

access to the eZ Pay merchant network
– Debit/Credit Card accounts
– Virtual account

• Access to banking facilities at eZ Pay Cash Points

– eZ Pay account Top-ups
– Cash Withdrawals
– Credit Card repayments
– Money Transfers

• Banking at the “Corner Store”

The mPowered Bank
• Expand points of presence

• Access your bank at selected “Corner Store”

shops

• Low value high volume transactions

• Fast/secure/online

• Transfer money anytime, anywhere to anyone

• Ability to withdraw and Top-Up money at

selected Merchants

• Inward foreign remittances

• Remote transactions
– Pay utility bills – (Insurance, CC Cards, stock brokers
etc)
– Pay and accept special offers
– Method to make “secure” on-line payments
The mPowered Consumer

• “eZ Pay” account with bank (s) of choice

• Card account/bank account linked to “eZ Pay” account
• Access to banking facilities at eZ Pay Cash Points
– Cash Top-up to eZ Pay Account
– Cash Withdrawal from eZ Pay Account
• Cashless transactions (Pay for goods via mobile phone)
• Transfer money anytime, anywhere to anyone at low cost
• Remote transactions
– Pay utility bills
– Pay and accept special offers
– Method to make “secure” on-line payments
• Inward foreign Remittance
The mPowered Merchant
• Cashless transactions
– Secure, online electronic transactions
– Control and tracking
– Transact securely with Consumers and Suppliers face to face or remotely

• Offer banking service

– Expand customer base by providing financial Services
– Secure Transactions
• Cash withdrawals
• Cash top-ups
• Money transfers
• Credit card repayments
– Utility bill pay point
• Water
• Electricity

• Increased revenue in terms of commissions on a wide array of

products/services
The mPowered Business

• Automation and transaction logging

– Small and Medium organisations
• Cashless transactions
– Security concerns addressed
– Insurance savings
– Payroll
• Support EDI transactions
– Secure payment infrastructure
– B to B transactions
• Field services and Distribution network facilitation
– Efficiency in disbursements and collections
• Virtual Corporate Fuel Card
– Avoidance of pre payment and fraud
mPowered Eco System

Mobile Banking at Payments for the

the Village Store goods

Bank Pays the

Shop keeper
mobile Cash Mobile Cash
Village Shop enabled Bank

Farmer uses
mobile cash for
goods and services

Payment Distributor
Received via
mobile cash

Collection Agent Sell

the to distributor or
Farmer
larger organization
Collection Agent
Farmer milk the
Cow and sell to
the Shop
Integration to eZ Pay

• Multiple operators across boarders

can connect to eZ Pay to send or
receive mobile money

SIM with eZ Pay

• Multiple Banks can connect as eZ Operator SMSC Application
SMSC Connected
Pay account issuing Banks via VPN Over the
internet

• Minimum Infrastructure
– SMPP 3.4 SMS connectivity
Internet
– ISO 8583 Integration for Banks

eZ Pay
• Cross boarder transactions Transaction
similar to VISA Switch

Acquiring Bank Issuing Bank

Mobile Money Remittance
• Any Remittance agency can directly
send money to mobile
• 3Rd Party Payments
– Interface supports Utility Payment, Bank Payments Agent Application Money Transfer
Server Agent Terminal

• ISO Interfaces or Web services

Connectivity via
Web services
Remittance
Notification sent to
Subscriber
Internet

eZ Pay Switch
The subscriber
can walk in to a eZ
Pay outlet or
transfer to eZ Pay
account at the
Bank
eZ Pay Merchant eZ Pay Bank
eZ Pay Launch
eZ Pay Marketing Campaign

• Situational Advertisements
eZ Pay Marketing Campaign

• Remote Payments and Money Transfer

Advertisements
eZ Pay Marketing Campaign

• Point of Sales Material

Banners

Posters
Merchant counter top stickers
Launch of the Second Bank

• Seylan Bank Advertising

Promotions and Discounts

• Discounts planned for the New Year Promotions

eZ Pay Transaction

mChek PIN
Transaction Authorisation

mChek PIN
Transaction Receipt
Be mPowered Today
• Pay for goods and services
at anytime, anywhere

• Money transfer

• Electronic Wallet in your

Phone

• Security Assured

• Visa pre-paid plastic card

– Access to ATMs island wide
– Internationally access
Contact:

Thivanka Rangala
Group Chief Commercial Officer – Dialog Telekom PLC
thivanka@dialog.lk

THANK YOU