Table of content:

Executive Summary
E1. Mobile Remittance and m-transaction - Unexpected Adoption and Benefits for Developing Economies
E2. The short term impact of the global economic downturn
E3. Remittances to support new long term banking direction
E4. Providing Favourable Regulatory Frameworks

1. Introduction
1.1 What Exactly Is Mobile Remittance?
1.2. Focus of the Report

2. The Remittance Market
2.1 The Critical Macroeconomic Role of Remittances
Chart 1. Remittances as a Share of National GDP in 2006
2.2 Behind Global Growth Trends in Remittance Flows
2.2.1 Growth in Global Migration
Chart 2. Growth in Global Migrant Stocks, 1960-2050
Chart 3. Average Annual Net Migrants to More Developed Regions
2.2.2 Remittance Flow Growth
Chart 4. Growth of Global Remittance Flows 1990-2007
Chart 5. Financial Flows into Developing Economies 1990-2007
2.2.3 Analysis of Flows into Recipient Countries
Table 1. Top 30 Formal Remittance Receiving Countries 2007
Table 2. Top 30 Formal Remitter Countries 2007
2.3 Migration Patterns and Remittance Corridors
Figure 1. Major Bilateral Remittance Corridors and Estimated Flows, 2007
2.3.1 Growth of the UK-Poland Remittance Corridor
2.3.2 Remittance Corridors and Operator Market Strategy
2.4 Remittances as a stable source of external finance
2.5 The multiplying effect of remittances: consumption, savings and investment
2.5.1 Enabling additive and transformational approaches to banking

3. Drivers towards Implementation
3.1 Financial Infrastructure
Chart 6. Market Share of P2P Money Transfers 2006
3.1.1 Inadequate Servicing of Remittance by Existing Mechanisms
Table 3. Global and UK Remittance Transaction Fees Comparison
3.1.2 Poor financial infrastructure in developing economies
3.1.3 Participation in the formal vs. informal economy
3.2 Mobile Infrastructure
3.2.1 Global Mobile Penetration
Chart 7. Global Telecoms Subscriber Growth, 1982-2013
Chart 8. African Mobile Subscriber Growth 1999-2013
Chart 9. Asian Mobile Subscriber Growth 1999-2013
3.2.2 Technological Developments
3.2.2.1 The Development of M-transaction
3.2.2.2 Convergence
3.2.2.3 Convergence Embraces Mobile Transaction
3.2.2.2 Low-cost handsets
3.2.2.3 Mobile Subscriber Growth in Emerging Markets
Chart 10. Top Ten Countries for Net Additional Subscribers 2007
3.2.2.4 SMS Banking
Figure 2. Basic SMS banking transaction flow
3.2.2.4.1 Prime Disadvantages of SMS banking
3.2.2.5 STK-enabled Mobile Transaction
3.2.2.6 IVR Banking Service Delivery
3.2.2.7 USSD/USSD2
3.2.2.8 WAP Service Delivery
3.2.2.9 Service Delivery via J2ME Apps
3.2.2.10 mWallet

4. Mobile Remittance: Operator-Side Types of Implementation
4.1 Business Models
Figure 4. Mobile Remittance Value Chain
4.1.1 Mobile Operator as Bearer Channel Provider
Figure 5. MNO as Bearer-only Business Model
4.1.2 Mobile Operator as Bearer and Banking Application Host
Figure 6. MNO Banking Application Host Business Model
4.1.3 Integrating Banks/Financial Institutions into Mobile Operator Hosted Platforms
Figure 7. Business Model for an MNO as a Banking Hub
Figure 8. Topology of the MNO Banking Hub Model
4.1.4 MNO Adoption of Financial Institution Status
Figure 9. Financially-licensed MNO model with MNO positioned as beneficiary
Figure 9. Financially-licensed MNO model with MNO positioned as remitter
4.1.5 Summary of MNO Business Model Options
4.2. Business Model Options for Financial Institutions
4.3 Service Models
4.3.1 mWallet to mWallet
Scenario 1. mWallet-to-mWallet transaction
4.3.2. mWallet to Cash
Scenario 3. mWallet-to-Cash transaction
4.3.3 Cash to mWallet
Scenario 3. Cash-to-mWallet transaction

5. Financial and Mobile Industry Convergence: Control Points and Requirements in Implementation
5.1 Regulatory
5.1.1 Addressing Boundaries between financial and telecoms regulatory frameworks
5.1.2. Aligning Developing Economy Mobile Remittance Models with KYC and AML/CFT Regulations
5.1.3. Developing Economy Mobile Remittance Models and the Application of Prudential Regulation
5.1.3. Developing Economy Mobile Remittance Models and Access to Clearing Systems
5.1.4 Formalising Remittance Flows
5.2. Transaction Processing

6. Mobile Operator and Financial Institution Partnerships: Mobile Remittance Case Studies and Emerging Developments
6.1. Smart Telecom mWallet Services, Philippines
Chart 11. Smart Money users as Proportion of Subs
6.1.1 Smart Padala Remittance: 4 years of success
Tables 4a and 4b. Smart Padala Remittance Partners and Locations Overseas
6.2. Globe Telecom, Philippines
6.2.1 GXI - Globe's M-Commerce Subsidiary
6.3. Vodafone's Strategies
6.3.1 Safaricom and M-PESA: m-transaction as a precursor to wider cross-border mobile remittance
6.3.1.1 M-PESA Adoption Curve
Chart 12. M-PESA Adoption, April 2007-March2008
6.3.1.2 M-PESA Adoption Drivers
6.3.1.4 The M-PESA Service Model
6.3.1.5 M-PESA Expansion and International Implementation by Vodafone
Figure 10. Advertisement for M-PESA
6.3.1.6 Delays and Barriers for the International Implementation of M-PESA
6.3.2 Vodafone and Citigroup/Citibank global agreement
6.5. Bharti Airtel and Western Union Pilot Project
6.6. The GSM Association Mobile Money Transfer (MMT) Initiative
6.6.1 MMT: Attempt at creating a Multilateral Remittance Framework
Table 5. Options for the Implementation of Multilateral MMT Hub Platforms
6.6.2 Partnerships
6.6.2.1 GSMA-Western Union Partnership
6.6.2.2 GSMA-MasterCard Partnership
6.6.2.3 GSMA-Western Union-Smart
6.6.2.4 GSMA-Western Union-RBS Group-Belgacom ICS HomeSend platform
6.6.2.5 GSMA-Visa
6.6.2.6 Western Union-Orascom mobile money transfer pilot
6.7 NatWest-PKO Bank Polski
6.8 Visa-US Bank mobile money transfer pilot
6.9 Deutsche Bank mobile payments service
6.10 !dea Cellular, Tata Communications, HSBC India & Etisalat UAE joint pilot project

7. Remittance: Vendor Profiles
7.1 Utiba
7.2 aKos Technology Corporation
7.3 Cointel
7.4 Monitise
7.5 GFG Group
7.6 Sybase
7.7 Paybox
7.8 eServGlobal
7.9 mTranZact
7.10 Overview of M-Commerce Vendors in Remittance
7.10.1 Licensing Vendor Business Models
7.10.2 ASP Vendor Business Models
7.10.3 Suitability

8. Conclusion
8.1 A necessity for economic development equals high consequential take-up
8.2 The need for regulatory harmonisation and accommodation
8.3. Standardisation as an achievable goal
8.4. Which form of mobile remittance will emerge as the most common?
8.5. The Danger of the Two Tier Mobile Economy
8.6. Forecasts: Deriving growth from global recovery beyond 2010
Chart 13. Global remittance growth forecast
Chart 14. Comparison of Forecasts for Remittance Channels By Value
Chart 15. Forecasts for Remittance Channel Volume
Table 6. Operator revenues generated from transaction costs
8.6.1. Greatest Impact: Asia and Africa
Chart 16. Comparative Mobile Remittance Forecast for Recipient Countries
Table 7. Forecast for Mobile Remittance Transaction Volumes per Country (US$million)
8.6.1. Minimal Impact in Latin America and Eastern Europe





Companies Listed
aKos Technology
Aktel
Alliance & Leicester
AT&T
Belgacom ICS
Bharti Airtel
Cable & Wireless
Citigroup
ClearTalk Wireless
COAI
Cointel
CSL
Cybertalk Limited
Dahaabshil
Deloitte
Deutsche Bank
DFID
Dialog
Digicel
Du
Enitel
eServGlobal
Etisalat
EU
Financial Services Authority
Fundamo
GFG Group
Globe Telecom
Global Peso Express
Grameenphone
GXI
HSBC
Hutchison 3G
ICSL Nigeria
!dea Cellular
IMF
Indosat
Inter-American Development Bank
Lari Exchange
Lebara Mobile
LG Electronics
Life
Link
Lycatel
Luup
MasterCard
Maxis
MiPay
Mobilink
MoneyGram
Monitise
Motorola
MTC Bahrain
MTN
mTranZact
Nairobi Stock Exchange
NatWest
Nokia
Orange
Orascom Telecom
Paybox
Pera Padala
Pinoy Express
PKO Bank Polski
Polkomtel
Royal Bank of Scotland
Safaricom
SingTel
Smart Communications
Softbank
Sony-Ericsson
Swisscom
Sybase
Tata Communications
Telefonica
Telenor
Tesco Mobile
TIM
TMN
Touch Mobile
Travelex
Turkceli
Ulster Bank
UNCTAD
United Nations
US Bank
Utiba
Vigo
VimpelCom
Virgin Mobile
Visa
Vodacom
Vodafone
Western Union
World Bank
Zantel

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