E-M WalletPresented by Mohamed Enayet

2013

What is itIt is an on-line prepaid wallet that is accessed from any Computer device, Tablet or Mobile.

It enables customers to charge their wallet via cash deposit through multiple channels and then use the balance in their wallet to purchase physical or digital goods and services online or offline.

Channels to charge your wallet

1. FI branches

2. Fawry PoS

3. Mobile

Payments for Merchants

• Offlinea) NFC

b) SMS

c) Mobile App

• On-Linea) Wallet ID

b) Password & PIN

E-Wallet Usage

Online Shopping

ShopandShip

Edfa3li

Souq.com

Carrefour Dubai

Amazon

Nordstrom

Retail Shopping

Carrefour

Seoudi

Metro

Malls

Tickets and

Parking

E7gezli

Ticketsmarche

City Stars parking

Airport parking

Otlob

Wallmart

Ebay

Egyptair

Product OverviewE-Wallet

Mobile ODP

Web GUI

E-Wallet PlatformIntegration with

FI

Integration with Fawry

Integration with Mobile Operators

Database

Merchants Customers

E-Wallet Service

Project Management Office 5

1 Single Payment Service

More than 1 account linked to 1 single

customer

Web and Mobile Access

Evolution to add other VAS e.g. Mobile

Marketing, Location based Ads, Loyalty and

Coupons

Link with other Payment methods e.g.

PayPal

Statistics, Facts and Market

2010

• Between 2007 and 2010 (55%) of SME's that were active online saw more than (20%) annual growth. Only (25%) of business that were not active online grew at such rate.

• As of 2011 only (13%) of small enterprises and just over 40% of medium enterprises in Egypt had an online presence

2011

• In 2011 Internet contributed an estimated 15.6EGP Billion, or 1.1% of GDP to the Egyptian Economy

• Internet Share of GDP is comparable to Health Services (1.3%), Education(1.1%), Oil Refining(1.1%)

• Internet Share of GDP is smaller when compared Restaurants & Hotels(3.2%). Wholesale and Retail trade(11.5%) and commodities(14.9%)

• In 2011, 4 percent of Egypt’s ad spend was for online advertising.

2012

• Egypt has the largest population of Internet users (31M) in July 2012

• the Internet and spending to access the Internet make up just 50% of e-GDP, compared with 59% in Saudi Arabia, 71% in Turkey, and 72% across the EU-27.

• In Travel and Tourism Sector companies are just beginning..Migration of Travel and Tourism Planning to the Internet has created a potential online marketplace for Egyptian Travel and Tourism Service of EGP13 Billion (Estimate that Egyptian Tourism Companies currently exploit less than 5%

2017• Estimate for Internet contribution to reach 52 EGP Billion by 2017 (1.6% of GDP)

http://www.bcg.com/documents/file124361.pdf

The Middle East and North Africa is the fastest growing e-commerce region worldwide

The region witnessed a year-on-year increase of an estimated 45% [$10bn in 2011 to $15bn in 2012]

Egypt came first in the entire region in e-sales in 2011 with $3.2bn while the UAE was next with $2.8bn in e-sales

E-commerce is one of the key drivers for the economy in today’s closely connected global environment.

Egypt and the MENA region have unprecedented potential when it comes to capturing the global e-commerce market share

Egypt currently has an internet penetration rate of over 35% and this is expected to grow by 40% annually

Internet usage in the region has grown by a staggering 1,500% since 2000, up from a mere 1.2m users in 2000 to a massive 18.7m in 2010.

www.visamiddleeast.com%2Fme%2Fcommon%2Finclude%2Fuploads%2Fecommerce_apr2013.pdf&ei=K8T2VPTAGLKx7QbyvYDoBg&usg=AFQjCNGvSDUOv_aDjRDGr3Je3l5qZzdKxw&bvm=bv.87519884,d.ZGU

MENA CEO PayPal Elias Ghanem announced in June 2013 PayPal operations in Egypt starting April

Egyptians Reaction was ““Finally PayPal is here, now I am connected to the world””

PayPal opened in Egypt because of

o Infrastructure

o Payment

o Supply

PayPal not working in some Arab Countries

o Ecosystem availability,

o Buyers who want to go online

o Countries that under sanctions by international regulations by the OFAC and others

PayPal enabled in which MENA Countries

o All the Gulf Corporation Council (GCC) countries

o UAE, which is their biggest market,

o Saudi Arabia which is their highest growing market

o Qatar, Bahrain, Kuwait, Oman, Yemen, Jordan, Tunisia, Egypt. Other countries are on the map and will come as we develop the business.

National ICT Strategy for 2012-2017Promoting Information Community and Digital

Citizenship

•Raise the number of high-speed Internet subscribers in Egypt to 13 M by 2015

•To have personal computers in at least 40% of Egyptian households within five years

• To establish a national network of 1,000 Technology Homes

Development front

•Promote the use of electronic signature applications in three government agencies

•Raise the volume of e-commerce by 20%

•Increase the proportion of e- banking customers using online or mobile banking to 30%

•Improve Egypt’s ranking in the field of Arabic digital content by increasing the number of trusted websites by 8-10%

Strengthening the Economy

•Maintain ICT sector growth rates of 7-10% over the next five years,

•Expand the volume of investment in the ICT sector by 20% to LE 55 billion

http://www.mcit.gov.eg/Upcont/Documents/Publications_422015000_Eng_ICT_Indicators_in_Brief_Dec2014.pdf

Market Size

On-Line shopping (Egypt)

• <1% of Egyptians=2% of Internet users (620K) shop online

• Otlob include 200 restaurants (5-7%) of food delivery market

• (50K-60K) unique customers place five orders on Otlob/month

Shipping (SnS)

• 16.796

• 12.967

On-Line Merchants

• Jumia

• 18.767

• +826K

• Nesfak

• 1754

• 816K

• Edfa3li

• 1086

• 675K

Target Market

Retail (Offline and

Online)

Online Shopping

Bill Payment

Spend per shopper: $20

E-Shoppers - Target Community

Size 5M

Cost per acquisition 0.05 $

10% of Users will make 1

transaction per Month

Transaction fee =>2.5%

Partner (Fawry) Transaction fee

=>2.5%

Facts Assumptions Internet Users: 28,388,668

internet penetration in Egypt at

around 35% of the total

population and expected to grow

by 40% annually

Spend per user: $113 Offline

e-Shoppers: 6,340,000

E-shoppers

Pay Bill

Market

Market Volume 150M USD

Credit card Penetration

2M users

Project Cost and ROI Cost

CAPEX Development and Hardware =>100K USD

OPEX Marketing =>38.8 K USD Support => 92.5 K USD

Revenue Users Acquisition after 3 years 15.5% => 776K users Projected Market Share after 3 years 7% => 14M USD Net Accumulated Revenue after 3 years => 129.8K USD

ROI 2.5 years

Market Snapshot

Credit Card & Debit Card…

Cash on-

Delivery60%

wallet15%

Projected Market

Competition Analysis

Competition Analysis

Competition Analysis

Data Sources

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