Mobile World Congress 2008

Vodafone Unveils M-PAISA Mobile Payments Service in Afghanistan

| Feb 11, 2008 | Wireless Services - Europe | Show Update

| Analyst: Emma Mohr-McClune

Current Perspective: Neutral Vendor Importance: Moderate Market Impact: Low

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Event Summary

February 10, 2008 -- The Vodafone Group announced the launch of M-PAISA in Afghanistan, in conjunction with its local partner, mobile services provider Roshan. The service will allow the B2B community to move money within Afghanistan, including to employees, by sending SMS text to a central server. Customers can deposit and withdraw cash at local M-PAISA agents, including Roshan retail outlets. The service also features an IVR voice-activated system.

Analytical Summary

• Current Perspective: Neutral on Vodafone Group’s launch of M-PAISA in Afghanistan, because Vodafone currently has no investment in Afghanistan, nor does the service offer strong alignment opportunities with Vodafone’s international mobile remittance venture, targeting migrant workers in the UK. The Vodafone Group is gaining experience in emerging-market money transfer services, but it remains to be seen how well these services can tie in with international remittance services, not piloting with Citibank in the UK.

• Vendor Importance: Moderate to the Vodafone Group, as this launch allows the operator to extend the same service concept of its successful M-PESA service in Kenya to a second emerging market. This launch could well be followed by other M-PESA/M-PAISA launches in other emerging markets – notably India – where Vodafone is looking for growth.

• Market Impact: Very low on the European wireless services market, as this service launch has no immediate impact on competitors at this point. The Vodafone Group is gaining experience in the area of mobile payments – both domestic and international payments. However, this initiative may grow more significant in the mid-term, as the Vodafone Group aligns its UK-piloted international money transfer service with the M-PAISA initiatives in Kenya and now Afghanistan, allowing migrant workers in Europe to send money home.

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