Published on December 30, 2016
1. 1© Copyright Comviva Technologies Limited. 2015 The Rise and Rise of Companion Cards
2. 2© Copyright Comviva Technologies Limited. 2015 Uses of Companion Cards POS Payments: Mobile money providers partner with Master card and visa to issue companion cards. Accepted globally at all Master card or Visa licensed POS. Enable the services to go global and be accepted internationally. ATM withdrawals: Companion cards can be used to withdraw money at Master card and Visa licensed ATMs. E-commerce Payments: Virtual cards are also available, which can be used for online payments. Customer gets the card details by SMS (card number, CVV and expiry date), which he enters in the website to make payments.
3. 3© Copyright Comviva Technologies Limited. 2015 Reasons for Popularity • Beneficial for mobile service providers Allows mobile companies gain revenue, especially the amount that they lose due to the advent of various free messaging apps. Remove the requirement of agents in the system, thus saving on agent commission. • Better acceptance structure Expand the reach of the mobile money service. Mastercard companion cards are accepted globally by 30 million merchants. A very good way of reaching out to the unbanked population of the world.
4. 4© Copyright Comviva Technologies Limited. 2015 Reasons for Popularity • Readily availability: No hassle of submitting a range of documents or opening a bank account. No need to open a bank account or submit documents. • Good branding opportunity: Immense brand recall since customers carry the cards all the time. Higher loyalty to operators • Easy distribution system: No hassle for mobile operators for setting up a fresh distribution structure for companion cards. It is done through the existing mobile distribution system.
5. 5© Copyright Comviva Technologies Limited. 2015 Opportunities Ahead • Enormous possibility is enormous: Enable money to circulate in the mobile money ecosystem. 90% of transactions are cash in and cash out and retail purchase transactions. Most of the use cases are still untapped and are expected to grow in the coming years. • A great chance for mobile operators: Help mobile operators expand their bouquet of the offering. They are coming up with various mobile financial services like merchant payments, e-commerce, ATM withdrawals, etc. This will help them to increase the pocket share of existing customers and onboarding of new customers.
6. 6© Copyright Comviva Technologies Limited. 2015 Opportunities Ahead • Helps in financial inclusion: A winning opportunity for economies especially those where the unbanked population is high. In Latin America, companion cards have been identified as an important measure of financial inclusion. In Latin America, 30% of all cards issued are companion cards. • Appeals to the youth: Millennials are ready to embrace new technology, have new experiences and open to new ideas. Companion cards are a great way in on boarding these Millennials.
7. 7© Copyright Comviva Technologies Limited. 2015 Challenges Ahead Companion cards need IT system adjustment like Issuer Identification Number, authorization of the APIs etc. For this, a PCI Compliant Companion Card Management System is required which helps in creating and managing various aspects of cards like payments, activation, linking the cards to customer accounts and validation of cards during the payment process. Companion Cards have to remain convenient and fast.
8. 8© Copyright Comviva Technologies Limited. 2015 Disclaimer Copyright © 2015: Comviva Technologies Ltd, Registered Office at A-26, Info City, Sector 34, Gurgaon-122001, Haryana, India. All rights about this document are reserved and shall not be , in whole or in part, copied, photocopied, reproduced, translated, or reduced to any manner including but not limited to electronic, mechanical, machine readable ,photographic, optic recording or otherwise without prior consent, in writing, of Comviva Technologies Ltd (the Company). The information in this document is subject to changes without notice. This describes only the product defined in the introduction of this documentation. This document is intended for the use of prospective customers of the Company Products Solutions and or Services for the sole purpose of the transaction for which the document is submitted. No part of it may be reproduced or transmitted in any form or manner whatsoever without the prior written permission of the company. The Customer, who/which assumes full responsibility for using the document appropriately. The Company welcomes customer comments as part of the process of continuous development and improvement. The Company, has made all reasonable efforts to ensure that the information contained in the document are adequate, sufficient and free of material errors and omissions. The Company will, if necessary, explain issues, which may not be covered by the document. However, the Company does not assume any liability of whatsoever nature , for any errors in the document except the responsibility to provide correct information when any such error is brought to company’s knowledge. The Company will not be responsible, in any event, for errors in this document or for any damages, incidental or consequential, including monetary losses that might arise from the use of this document or of the information contained in it. This document and the Products, Solutions and Services it describes are intellectual property of the Company and/or of the respective owners thereof, whether such IPR is registered, registrable, pending for registration, applied for registration or not. The only warranties for the Company Products, Solutions and Services are set forth in the express warranty statements accompanying its products and services. Nothing herein should be construed as constituting an additional warranty. The Company shall not be liable for technical or editorial errors or omissions contained herein. The Company logo is a trademark of the Company. Other products, names, logos mentioned in this document , if any , may be trademarks of their respective owners. Thank you Visit us at www.mahindracomviva.com
9. 9© Copyright Comviva Technologies Limited. 2015