The Future of International Payments
Michael
• Mergers & Acquisitions for
WPP and News Corp
• MBA from INSEAD
• Accenture & ADL
About me…
Small World – Founder (2005 – 2012)
• Inception to Top 10 offline global money transfer business
• 18 Countries, 8.4 m pa transactions and $4.5 billion per annum volume
• Raised $50m+ equity and debt funding.
Azimo – Founder (2012 – Present)
• World most comprehensive digital payments business: 198+ countries
• Backed by eVentures, Greycroft and TA Ventures ($10m+ capital)
• Payment advisor in PE and consulting industry
International Payments
Ecosystem (Simplified)Hint: it’s very complicated
Payment Networks Money Transfer Ops Digital Wallets FX Brokers Protocols
Payment ProcessorsTelcos
Internet Giants eCom Retailers Messenger Banks StartUps
The Volume and volume of cross-border payments are
vast and growing fast
Market Volumes
Global $550bn pa
European $102bn pa
USA $50bn pa
Top European Volumes
Germany $15bn
France $12bn
Italy $10bn
Spain $10bn
UK $8bn
Highly fragmented
Western Union c. 15% share
Global and EU consumer remittance flows are huge
and growing at 10%
x9+5%+ GDP
$1bn
“The true size, including unrecorded
formal and informal flows, is believed to
be significantly larger”
Largest remittance market in region: one third
Russia, one third EU and one third ROW
Macroeconomic Opportunity = 3 Global Megatrends
Internet
and Mobile
Ubiquity
Bitcoin and
the
blockchain
The Rise of
Social
Internet
and Mobile
Ubiquity
Bitcoin and
blockchain
The Rise of
Social
5.6 Billion Smartphone Subscriptions by end of 2019
Ukraine
• 90% Mobile
• 31% Smartphone
(100% up YoY)
Mobile drives financial inclusion: Case Study
Internet
and Mobile
Ubiquity
Bitcoin and
the
blockchain
The Rise of
Social
“There’s going to be an opportunity over the next five
years or so to pick any industry and rethink it in a
social way… we think that every industry is going to
be fundamentally re-thought and designed around
people.”
World Map of Social Networks – July 2014
Country
FB Users
Millions
% Pop
FB Users
1 United States 166 53%
6 United Kingdom 33 52%
9 France 26 39%
10 Germany 25 31%
11 Italy 23 38%
13 Canada 18 53%
15 Spain 18 37%
17 Japan 17 14%
19 Malaysia 14 47%
20 Taiwan 13 57%
Country
FB Users
Millions
% Pop
FB Users
3 Brazil 63 5%
4 Indonesia 59 30%
5 Mexico 51 21%
7 Turkey 38 33%
8 Philippines 32 40%
12 Argentina 30 29%
14 Thailand 20 48%
16 Colombia 18 26%
18 Bangladesh 17 38%
There are 1.3bn+ Facebook users with huge populations in
both send and receive countries
Send Receive
WhatsApp has 600m Active Users Now
FB Messenger payments are coming soon…
Social
Marketing
New Support Channel
Identity/
KYC
Social Proof
Broadcast
Social has huge dimension to add to payments
Social for Identity: KYC and Compliance
YES MAYBE NO
Velocity
Blacklist / PEPs/
Sanctions
Blacklist / PEPs/
Sanctions
Device ID
Social Profile
Internet
and Mobile
Ubiquity
Bitcoin and
the
blockchain
The Rise of
Social
The block chain and distributed general ledger has the
potential to change everything
Protocols
Predictions
• Wholesale impact will happen
first
• Anonymity will be removed
(Bitcoin too sullied to survive)
• Consumer wallet adoption will be
limited
Stellar
Then Now
Expensive, Inconvenient
and High Exception
Low Cost, Easy,
and Efficient
Azimo is the Re-Imagination of Cross Border
Consumer Payments
2%9%
Disrupt the $500bn money
transfer industry by
focusing on the customer
and using technology to
bring down prices.
Build a $1bn business.
Our mission
3,762
Corridors
300,000+ Payout LocationsLargest digital only network
5,000,000,000 Customers ReachableVia Cash Payout and Direct to bank account services
6 Payout
Methods
73 Currencies 198+ Receive Countries
The scale and reach of the Azimo
Platform
To Mobile (Wallet
TopUp)Acqrs/Gatewys
Mobile
Application
Internet
Application
Automated KYC, Compliance, Risk
To Cash
Home Cash
Delivery
Bank Network
To Account
Bill/Healthcare
PaymentsFunding
Alt Payments
Internet, Cash Deposit, Debit Card, APM
Compliance BlacklistsRisk Engine
API
SFTPTransaction
Engine
Application
Layer
Marketing, Reporting and CRM System
Global Network
Fee & FX
Margin
Multi Channel Support Outbound Comms Deep Analytics Real time CPC, GDN Social, Affiliate, ATL
Failover
Monitor
Live
Pending
Operating model: simplifying the complex
multi-relationship remittance processes
To Mobile (Wallet
TopUp)Acqrs/Gatewys
Mobile
Application
Internet
Application
Automated KYC, Compliance, Risk
To Cash
Home Cash
Delivery
Bank Network
To Account
Bill/Healthcare
PaymentsFunding
Alt Payments
Internet, Cash Deposit, Debit Card, APM
Compliance BlacklistsRisk Engine
API
SFTPTransaction
Engine
Application
Layer
Marketing, Reporting and CRM System
Global Network
Fee & FX
Margin
Multi Channel Support Outbound Comms Deep Analytics Real time CPC, GDN Social, Affiliate, ATL
Failover
Monitor
Live
Pending
Leveraging new technology
Foreign
Exchange
Risk and
Compliance
Funding
Disbursement
Marketing and
CRMReporting
Period Jan. 2013 – July 2014
Traction - Weekly Visitors
Up to
7xMore traffic
Traction - Transactions
Dec
-12
Jan-1
3
Feb-1
3
Mar
-13
Apr-
13
May
-13
Jun-1
3
Jul-1
3
Aug-1
3
Sep
-13
Oct
-13
Nov-
13
Dec
-13
Jan-1
4
Feb-1
4
Mar
-14
Apr-
14
May
-14
Jun-1
4
Jul-1
4
Up to
10xMore transactions
*Estimated
Up to
14xMore Volume
Traction - Volume
Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14*
Enabling Global Commerce
“If the transaction costs on remittances
worldwide were cut from where they are today at
around 10% to an average of 5%....
…it would unlock $15bn a year in poor countries”
Population: Adults
5.4 BillionPopulation: Banked
2.3 BillionTarget
2.1 Billion
International Payments are where it’s at…
Massive and Fast Growing Market Opportunity
Next stage in the evolution of digital: money
Slow legacy players = disruption potential
Room for new $1bn companies
Potential to change the world for the better