airtel money product overview and constructs

Indian Financial Landscape

Mobile payment as a category is still in its nascent stage in India. While an estimated 240 million people across
India hold bank accounts (less than 20% penetration), more than 90% of the countrys population uses cash to
pay for its daily needs. On the other hand, the penetration of mobile telephony currently enriches the lives of
over 900 million people (close to 75% of the population) in the country and can facilitate a paradigm shift in
the way India transacts.
Additionally, India has 100 million migrants spread across the country 58% of these migrants remit money
home, which is expected to touch $20 Billion annually by 2014. Lack of financial infrastructure, education and
awareness has resulted in customers either not having access to a banking/payment service or else paying a
premium for such basic service. Therefore, a majority of these customers continue to rely on traditional or
time consuming methods like money orders and cheque remittances when it comes to transferring funds.
airtel money as a game changer
Mobile as a payment tool is quite amenable to handling a large volume of low value transactions and has
proven expertise in handling payments in a safe, secure and cost-effective manner.
Safe & secure
through mPIN
register for an account

Pay anywhere,
anytime

No long queues
for bill payments

load cash on mobile

Get special
offers

Use for various payments &

money transfer

airtel money is Indias first of its kind mobile wallet service by a mobile operator that can run on any airtel
GSM cellphone through a simple (non-internet based, USSD) menu, providing an extensive range of services
across merchants. An easier alternative to other payment options including cash, customers can use airtel
money to pay for insurance premiums, utility bills, recharges and for remote transactions like booking tickets
or physical transactions like shopping etc. Airtel money recently also launched Indias first non-internet mobile based
ticketing system in collaboration with IRCTC.

airtel money variants

Express Account

Recharge for Toll and any DTH or mobile

phone
Pay bill for electricity, gas, landline,
postpaid
Money Transfer to bank a/c & airtel money
a/c
Book tickets for IRCTC, movies
Online Payments (e-commerce)

Power Account
All express account features with higher
transaction limits

Super Account
All express account features +
Earn interest @ 4% p.a.
Withdraw & send cash to any
mobile

Confidential: For limited circulation only

airtel money product overview and constructs

why airtel money

Airtel Money has removed geographical restrictions,
technological limitations and time constraints for Airtel
customers to do their prepaid / DTH recharges and their
postpaid / broadband / landline payments. No more long
queues and no more hassles of dropping cheques for the
postpaid customers. It is available at the click of a phone
button and allows customers to make self-payments and also
pay for his family and friends numbers anywhere, any time.
Convenience is what Airtel Money offers.

The Super Account is a no-frills interest-bearing

savings bank account of Axis Bank on Airtels mobile
platform. To begin with, the product is available in the
top 4 remittance corridors involving Delhi and Mumbai
on the sending side and Bihar and East UP on the
receiving side. Services are envisaged to be extended
to other remittance corridors across the country.
This product offers customers a convenient and safe
avenue to deposit cash, transfer money and withdraw
cash, as well as recharge their mobile and DTH
connections, while earning savings account interest.
The product has received a positive response from the
financially excluded citizens in the parts of India where
it has been launched, and is succeeding in enhancing
their quality of life.

Airtel Money is the first mobile-based prepaid service to

offer customers the convenience of money transfer.
Customers can send money to other Airtel Money customers
as well as to any NEFT-enabled bank account in India, in a
convenient, fast and secure manner. A customer can register
for Airtel Money by dialing *400# and choosing an MPIN to
activate his account. Whenever a customer wants to send money back home, all he has to do is visit his nearest Airtel
Money retailer, load cash on to his Airtel Money wallet and then use his mobile to send money directly to the bank
account of his choice.
Alliances
Airtel money has partnered with MFIs for furthering its financial inclusion agenda. Micro Savings are promoted through
the Small Savings Bank A/c of Axis bank that makes transacting convenient through a simplified mobile based USSD
platform at the nearest airtel outlet which becomes the teller at customers' doorstep metaphorically. Airtel Money thus
brings with it the scope for product and delivery innovation extending "Micro Pensions/Insurance" using economies of
scale and takes cash management out of the MFI's domain, thus, saving on cost and time which can be utilized in further
business and product development. It is foreseen that these customers, especially women, will inculcate a habit of
savings without fear of loss or theft and should feel empowered by way of this powerful digital tool.
We are trying to build a structured framework for servicing the bottom of pyramid customers through a partner that will
help us create a pioneering model in the MFI industry nationally. We are also engaged in discussions with a dairy sector,
NPS lite through a nationalized bank, DBT schemes through a couple of State Govts to empower their
beneficiaries/customers with banking facilities in the most convenient and efficient way for them.
Looking Ahead

We wish to develop an active transacting base with diverse usage across different categories such as
entertainment, travel, e-commerce, utility payments and B2B solutions across the country.
We are optimistic about the potential of airtel money to bring about a sweeping change in the current
economic scenario providing a strong value proposition for customers to shift from cash to mobile, as a swift
& convenient mode of payment.

Confidential: For limited circulation only