Professional Documents
Culture Documents
Index
Executive Summary 04
Introduction 06
Management Summary 07
Scope of Services 09
Strategy and Implementation Summary 11
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Executive Summary
‘Give me a lever and a place to stand and I will move the earth’ Archimedes of Syracuse
Peg B Technology is geared to take the challenge to “move the world” of payments for the un-
derserved people, introducing a sophisticated profiling payment platform, which can increase the
value proposition for each of the underserved customers, as we have “the lever”–our knowledge
in building cutting-edge applications, which deliver long term commercial benefits and make tech-
nology the asset for our clients’ business; and we have “the standpoint” - the sound experience of
our stakeholders in supporting one of the biggest high-volume mobile payment platforms for the
fast growing brand Sportpesa in Kenya, where valuable technological insights have been acquired
while working closely with M-Pesa and Airtel Money.
Coinage-based payment systems are the foundation of all modern economies. These were first
introduced by the Lydians in 700BC in Western Turkey. The Lydians realized that for an economy
to thrive, an effective medium of exchange had to be implemented to transfer monetary value se-
curely and efficiently between buyers and sellers.
Nowadays, the biggest challenge for the traditional banking infrastructure in emerging economies
is to make the business model work to serve low-income customers, particularly in rural areas.
According to GSMA Intelligence approximately 2.5 billion people in lower to middle income coun-
tries are ‘unbanked’, but more than one billion of these people have access to a mobile phone,
which can provide the basis for extending by far the reach of financial services such as payments,
transfers, insurance, savings, and credit. Peg B Technology aims to respond to these business
needs, providing a convenient, affordable, safe, fast transaction digital wallet to the underserved,
thereby contributing to the increase of financial inclusion. We do this through close engagement
with mobile money providers offering the mobile industry tools and insights to help deployments
scale sustainably, as well as supporting the creation of enabling regulatory environments to facili-
tate digital financial inclusion.
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Peg B employees’ professional development is ardently supported through an established talent
management program. Nurturing talent: picking it from the grassroots, supporting its development
and seeing it succeed to glory, is a lesson learnt in the recent past from business partners in Africa
such as Sportpesa, who have undertaken to grow the local and international sports talent and seen
this talent rise and shine through balanced CSR activities and sponsorships.
We believe that success belongs to those who do not fear the risks coming with new challenges,
but take them readily, put great effort and work hard to deliver the best.
4
Introduction
Our Vision
Discover a universe of payments seamlessly integrated into one-experience, on every device, for
any payment needs of our business partners.
Our Mission
To change how the world pays and empower our partners to accelerate their pace, scale and reach
of business by enabling multiple payment methods.
Our Culture
We nurture talent who think out of the box and can reach beyond the known while developing new
solutions for our clients. We thrive in an innovative, creative and positive team atmosphere. We
maintain an open door policy with the determination to achieve positive results. We enjoy working
hard, staying focused and delivering on time and to budget. We equally love to collaborate at work
and take time out to have fun as a team. We venture to make one extra step to find solutions. We
act with integrity, care and respect for our customers, business partners and the society.
5
Management Summary
Organizational Structure
The Company will employ a lean organization structure to ensure that the maximum value is added
to the product without adding costs to it.
Management Team
The Company’s management is highly experienced and qualified with many years of experience in
the field and the Company is committed to recruit valuable individuals who consistently contribute
to its development and growth.
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Focus on custom mobile payment services framework development
Peg B focuses on the design, development and implementation of custom mobile payment ser-
vices frameworks, solution delivery and application support across various verticals.
There have been some notable successes, such as Vodafone / Safaricom’s M-Pesa in Kenya. In
the first quarter of 2016 its number of mobile money transfer subscriptions was recorded at 16.7
million subscriptions. In March 2016 the official statistics reported transaction value of $7.6 billion.
There is a huge difference between emerging markets and developed markets. Mobile payments
in emerging markets are different from mobile payments in the developed world. To developing
countries, mobile payments are a way to reach a group of 2 billion unbanked people in a cost-effi-
cient way. Mobile money is a unique service, not simply a value-added service (VAS) or intelligent
network (IN) extension, but an entirely new line of business.
We have utilized our experience in the Kenyan market to develop a preliminary framework to help
prospective mobile money operators with the design and development of a de-novo system. This
framework lays out what we believe to be the key decisions the companies must make and our
perspectives on which paths will lead to the highest prospect of success.
We found that many aspects of a mobile money service can likely be generalized and replicated
from country to country and do not need to be re-invented for each deployment, but also, that there
are important components, which should be customized to fit the local context.
7
Scope of Services
The popularity of banking and m-commerce on smartphones and tablets, merchant adoption of
mPOS devices, the growth of in-app payments, and the emergence of mobile wallets and NFC-
based point-of-sale payment services has shaped the scope of our services.
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Product and service description
The following is a list of products and services offered:
1
SMS/USSD
With consumers increasingly comfortable using their mobile phones for products and services
such as SMSs, USSD, online/USSD banking and wireless Internet via 3G networks, our SMS/
USSD solutions will gear our partners to gain mileage ahead of their rivals utilizing this market
niche, which is expected to see substantial growth over the next decade in the East African region.
Particularly, our software will enable the customers of our partners to make transactions via SMS/
USSD anywhere, even when they cannot establish the fast 3G connections; also they can receive
free customized SMS alerts for top events, updates and scores.
2 Mobile Wallet
We utilize the unlimited potentials offered by mobile devices and using the unique advantages of
the mobile money market, we provide mobile wallet solutions allowing the customers to send mon-
ey, or to debit their customer account without having to rely exclusively on cash.
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Strategy and Implementation Summary
The volume of new products development and respectively sale values and optimization of opera-
tional costs are expected to result in significant increase of investor returns and net value creation
over the base case scenario.
Strategic alliances
The company has built strong business relations with industry leaders in East Africa who pursue
de-novo systems, facilitating higher prospects of success. The business development strategy is
to capitalize on innovative, mobile-money framework design, development and integration by ex-
panding into new market areas.
Sales strategy
The sales process involves several steps, which include relationship building, customer require-
ments/needs gathering and analysis, product presentation, demo, closure and implementation.
This approach is preferred as with our technical products and services it is more effective than
competitors’ single product approach.
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Our key competences for building successful mobile payments solutions
for our customers
›› Why is this critical? Any company which wants to operate a mobile money service will need to build a relationship
with the relevant regulators in order to ensure that it can operate a mobile money service without breaking any existing
laws, and that regulations which are subsequently developed actually facilitate, vs. hinder, the development of mobile
money services.
›› Why is this critical? Customer trust is a critical pre-requisite as a) mobile payment services are new to the customer
segments being served, and the idea of moving from holding physical funds to electronic is a significant behavioral
shift, b) in many of the markets in question, there are frequent scam operators who purport to offer various financial
services but ultimately abscond with customers’ funds, creating a general mistrust in these types of financial offerings,
c) mobile payment services require handing funds to individuals not personally known to customers (e.g. Agents), and
d) even small disruptions in a customer’s financial life from problems with the service can have significant ripple effects
due to the lack of savings / financial cushion in these populations.
›› Why is this critical? This is critical because of a) the challenges relating to customer trust noted above and b) the fact
that in many emerging markets, an insurance deposit organization does not exist, or if it does, it often does not cover
mobile money accounts, particularly if the service is not operated by a regulated financial institution.
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›› Why is this critical? These are essential components of a mobile money service, much more so than might be ex-
pected, because a) only a small percentage of customers use their accounts as savings vehicles, and b) much of the
economy in which customers exist is still a cash economy, requiring them to have physical access to funds to transact.
Liquidity Management:
Liquidity Management refers to ensuring that the entities (e.g. agents) responsible for handling
cash-in / cash-out have adequate physical cash and electronic funds (“e-float”) to facilitate the
customer transactions they need to perform.
›› Why is this critical? In general, procuring and sending physical funds to rebalance cash and e-float accounts is not
trivial, as agents are often not in physical proximity to whichever central office of the mobile payments service (or other
entity) handles these transactions. If there is a mismatch, the agent’s ability to perform either a cash-in or a cash-out is
effectively curtailed, halting the service at that location and causing a significant problem for customers.
Mitigating Fraud:
Our Payment Fraud solution enables our customers to: a) use a payment tokenization for lowering
the value of sensitive data stored on mobile devices and transmitted over networks during pay-
ment. b) block fraud in real time – minimize losses and customer disruption by stopping suspicious
payments as they happen across multiple channels simultaneously; c) adapt to emerging channels
and attacks – leverage proven, out-of-the-box detection with our flexible and highly configurable
solution to enable greater control of fraud prevention and lower total cost of ownership; d) stream-
line fraud operations – reduce investigation time and expense by automating transaction interdic-
tion, incident assignment, event visualization, and reporting.
›› Why is this critical? Aside from the direct loss to those customers affected, it’s also part of building and maintaining
trust among the broader customer base. Fraud plays directly into the pre-existing mistrust of payment services. Thus,
even a limited number of incidents of fraud can have a ripple effect on impacting customers’ trust in the service and
their willingness to use it.
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Ecosystem Alignment:
The system structure refers to the way in which partnerships are established / structured and the
competitive landscape that is established.
›› Why is this critical? This is critical as mobile payment services inevitably involve an ecosystem approach, and unless
the ecosystem is developed in a way that works for all parties involved, it will have trouble growing.
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