FTS’ Mobile Money Solution

Unlimited Flexibility in Mobile Payments,

Mobile Money and Revenue Sharing
Models

General Solution Description and High

Level Design

FTS PAYMENTS SOLUTION

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Disclaimer

This document, including all parts and appendices, (i) is the sole property of FTS
Formula Telecom Solutions Ltd., and/or any of its subsidiaries or affilates
(hereinafter "FTS"); (ii) contains highly confidential, proprietary and market-
sensitive information, the disclosure of which will significantly prejudice the
competitive position of and result in undue loss to FTS; (iii) is submitted ONLY
for internal use and shall not be reproduced or transferred to other documents,
disclosed to any third party, or used for any purpose other than that for which it is
furnished, without the prior written consent of FTS. It is strictly forbidden to
copy, duplicate, sell, lend or otherwise use this document in any way, shape, or
form without the prior consent of FTS. Redistribution of this document, to the
extent such distribution was permitted by FTS, shall include a copyright notice
and the paragraph contained herein. Any trademark and service marks of FTS,
including the Formula mark and logo, are the exclusive property of FTS, and may
not be used without FTS prior written permission. All rights in this document and
any knowhow embedded therein are retained and owned solely by FTS. The
product described in this document is based on software developed by FTS. THIS
DOCUMENT IS PROVIDED “AS IS” AND WITHOUT ANY EXPRESS OR
IMPLIED WARRANTIES, INCLUDING, WITHOUT LIMITATION, THE
IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A
PARTICULAR PURPOSE. This document shall be returned to FTS upon its
request.

 Copyright FTS 2017. All rights reserved. The copyright and proprietary rights
in this document or embedded in the document belong to FTS.

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CONTENTS
1. GENERAL .................................................... 2
1.1. FLEXIBLE COMMISSION STRUCTURE .................................... 2

1.2. SECURITY AND FRAUD ................................................. 3

1.3. NETWORK INTEGRATION .............................................. 3

1.4. FLEXIBLE, MANAGEABLE PLATFORM ................................... 3

1.5. MULTI-TENANT, MULTI-CURRENCY, MULTI-HIERARCHY ............... 3

1.6. MAKING THE MOBILE MONEY CUSTOMER HAPPY ...................... 3

1.7. MAKING THE MOBILE MONEY DEALER/MERCHANT SUCCESSFUL ....... 4

2. HIGH LEVEL DESIGN ......................................... 5

2.1. HARDWARE ........................................................... 5

2.2. SOLUTION DESCRIPTION ............................................... 5

2.3. SOLUTION ARCHITECTURE............................................. 6

2.4. CASH FLOW ........................................................... 7

2.5. USERS ................................................................. 9

2.6. REGISTRATION TO MOBILE MONEY SERVICE ......................... 10

2.7. CASH IN ............................................................. 10

2.8. CASH OUT .......................................................... 11

2.9. TRANSFER P2P ..................................................... 13

2.10. SELL ............................................................... 14

2.11. SALARY PAYMENT.................................................. 15

3. REPORTS .................................................. 15
ABOUT FTS ......................................................... 17

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1. GENERAL
Everyone is a Banker! More and more, customers want to make payments and
purchases without having to carry cash, a wallet or a credit/debit card. Mobile money
systems enable anyone to be their own banker. FTS’ mobile money solutions provide
all you need to achieve this, including complete integration with existing banking
institutions and billing systems.
A successful mobile money solution delivers pay-as-you-grow system that provides
an easy, comprehensive alternative to banks.
FTS’ mobile money solutions:
• Provide a one-stop-shop, end-to-end solution that is fully integrated with
your existing infrastructure (for billing and so on) and with banks. Our
solutions accommodate all network connectivity, including USSD (SS7), SMS
and Web gateways.
• Ensure regulation compliancy.
• Provide a platform with an easy-to-use web interface, so that everything is
easily manageable.
• Handle Vouchers: Our mobile money solutions send money point to point, as
well as handle vouchers to transfer money to parties who are outside the
mobile money system. For out-of-system transfers, a customer can receive a
voucher via SMS, which he/she can then redeem at an appropriate
service/merchant for cash. Such transfers are handled smoothly, easily and
quickly.
• Handle Bulk Operations: Our mobile money solutions accommodate bulk
operations, such as one-to-many transfers or many-to-one transfers.
• Provide an infrastructure that supports micro loans and customer credit
scoring.
• Provide a competitive, comprehensive alternative payment system inside the
country.
• Enable mobile money to be used as an extra revenue stream.
• Are fully integrated with your existing infrastructure.

1.1. FLEXIBLE COMMISSION STRUCTURE

Commission structures are the bread and butter of mobile money operators.
Commission structures must be flexible and totally manageable through an

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accessible, easy-to-use GUI. For successful solutions, mobile money dealers must be
able to define their own commission structure.

1.2. SECURITY AND FRAUD

Customers want to be able to pay without having to carry cash, a wallet or a
credit/debit card. This promotes the customer’s personal safety, as the customer is
less prone to attack. Also, if the customer loses his/her phone, they don’t
automatically lose their money along with it. Personal safety is a key concern in this
arena. Mobile money provides enhanced security and is a key fraud-prevention tool.

1.3. NETWORK INTEGRATION

This one-stop-shop, end-to-end solutions can be fully integrated within your existing
infrastructure. They accommodate all types of network connectivity, including USSD
(SS7), SMS and Web gateways – all in real time.

1.4. FLEXIBLE, MANAGEABLE PLATFORM

A flexible, practical platform that provides a host of management tools and a simple
web interface is essential. The solution offers mobile money dealers an array of easy-
to-use management tools, as well as provides comprehensive reporting capabilities.
In addition, our solutions incorporate a self-care portal for mobile money dealers. The
mobile money solution is easily adaptable to ensure regulatory compliance with all
pertinent regulations. Our flexible, pay-as-you-grow approach encourages and
promotes self-reliance at every level.

1.5. MULTI-TENANT, MULTI-CURRENCY, MULTI-HIERARCHY

Successful mobile money solutions promote cross-selling between mobile money and
mobile services. A multi-level foundation enables mobile money dealers/merchants to
work collaboratively with other businesses, such as telcos, to expand their customer
base, as well as use the mobile money system as an extra revenue stream.

1.6. MAKING THE MOBILE MONEY CUSTOMER HAPPY

A modern satisfied customer wants:
• To pay without having to carry cash, a wallet or a credit/debit card. This
promotes the customer’s personal safety, as the customer is less prone to
attack. Also, if the customer loses his/her phone, they do not automatically

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lose their money along with it. Imagine, having your bank, your wallet and
your credit/debit card all in one.
• To handle money transfers safely, without fear for their personal safety.
• To pay or transfer money easily, with the ability to transfer via different
channels that can be activated on any type of device.
• Transparency: A customer wants to be able to pay, log the transaction and see
his/her money, providing immediate access to what’s available in his/her
account. Paying bills using USSD is an outdated method. Mobile money
transfers can be made using a simple landline device, and do not require a
smart device. They can be activated using any type of device.
• To safely and easily transfer money back home and to remote areas (such as
the bush).
• To pay utility and telco bills using mobile money.
• To be able to transfer money to anyone who has a phone number.
• To make purchases at a store using mobile money and/or become a vendor.

1.7. MAKING THE MOBILE MONEY DEALER/MERCHANT

SUCCESSFUL
Mobile money dealers/merchants provide a payment channel for customers, similar
to an ATM service. In addition to providing cash on demand, dealers must be able to
provide top-up mechanisms that enable a customer to easily top-up his/her mobile
money account.
Dealers and merchants must all be recognized by system and customer must find it
very easy to use.
A modern satisfied mobile money dealer/merchant wants:
• To be able to do everything that a bank can do.
• Access to a self-care portal from which they can manage their own
business/transactions (food chain).
• Access to extensive reporting capabilities, which is essential for tracking
requests. Dealers must be able to view all relevant financial information with
ease.
• A safe, easy-to-use method for handling transactions.

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• Transparency: Dealers want to be able log a transaction and see their money,
immediately and on demand.

2. HIGH LEVEL DESIGN

2.1. HARDWARE
Mobile money platform can be install on the basic hardware with the following specs:
• RAM - 32 GB
• CPU - at least 4 cores per server
• HD - 200 GB SSD +1TB (might be external)

2.2. SOLUTION DESCRIPTION

The solution is based on the Mission Control platform. Dedicated subscriber wallets
will be created enabling cash funds/credits to be stored against the Subscriber’s
MSISDN. “Mobile money” will enable credits to be:
• Transferred between registered and not registered subscribers including
subscribers outside the network
• Exchanged with Merchant accounts for goods and services
• Cash In/Cash Out service
• Bill payments
• Salary payments
“Mobile money”, will support USSD channel for all operations in addition to other
channels such as SMS and Web. The service can be integrated with 3rd parties
depending on Operator’s business and commercial needs.
Mobile money will allow users to initiate and receive mobile payments with a simple
USSD command, from any mobile phone, anytime, anywhere. The commands will
allow Operator’s customers to perform the listed below operations:
• Phone-to-Phone transfers – a non-business related transaction of sending
money as mobile payment to another mobile number.
• Payments – mobile payment transactions or purchases from merchant
partners.

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• Bills payment – mobile payment of utility, Internet Service Providers (ISP) and
Insurance/Pre-need bills.
• Airtime purchase – a service that allows subscribers to convert wallet balance
to prepaid credits for their mobile service or for another person’s mobile
service.

2.3. SOLUTION ARCHITECTURE

The proposed solution is based on the “Mission Control” platform.
Exhibit 2.3–1: High Level Architecture

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Exhibit 2.3–2: Data Flow:

2.4. CASH FLOW

The purpose of this section is to describe the designed cash flow for mobile money
service. The main objective is to create a micro environment that will have only one
way for Cash In and one way for Cash Out. As a result all monetary transactions and
current balances will be stored and managed utilizing Mission Control platform.
In order to manage and monitor mobile money service cash flow the following
entities will be created:
A. Every customer that will subscribe to the mobile money service will have
additional wallets that will be used for storing mobile money only.
B. Each dealer will have an additional Dealer wallets that will store the mobile
money only.

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C. Mobile Money super user will be created with different wallets like: Cash In,
Cash Out and Commission.
D. The distribution will be done by Operator’s Resellers/Dealers that will sell a
dedicated mobile money scratch cards.
As shown below in exhibit 2.4-1 the customer will be able to cash In using “Mobile
money”, following that the loaded amount can be used for following services:
A. Transfer between registered customers.
B. Transfer to merchants for purchased goods.
C. Cash out via cashiers/dealers.
D. Pay bills
E. Pay salaries (for organizations)
For every transaction a commission can be applied according to Operator’s business
requirements and will be deducted during the execution of the transaction. The value
of the commission will be added to Operator’s super user’s commission wallet and
transaction record will be generated for both the main transaction and commission.
Exhibit 2.4-1: Cash Flow:

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2.5. USERS
This section describes the types of users that will be created for mobile money service.
All types of users have to be pre-registered for the service. The pre-registration will
be done using Operators representatives which will identify the person by ID and
insert his personal information into the platform. Following pre-registration
customers will be able to register to the service via USSD *CASH service.

2.5.1. USER TYPES

Subscriber:
Basic user type on the platform, this type of user will be able to make cash In, Cash
Out, money transfer to other subscribers and merchants for purchases. This type of
user will have his own dedicated E-Wallet for mobile money service.
Family subscribers:
Father – will be able to make cash In, Cash Out, money transfer to other subscribers
and merchants for purchases. This type of user will have his own dedicated E-Wallet
for mobile money service and will be shared with all sons under his account.
Son - will be able to make money transfer to merchants for purchases. This type of
user will use his father’s dedicated E-Wallet for mobile money service.
Merchant:
Merchant user will have a dedicated E-Wallet that will allow him to collect money for
goods and services from other subscribers of mobile money service. This user will be
able to make Sell, money transfer, Cash Out. This is the only type of user that can
initiate the Sell operation.
Dealer/Cashier:
Dealer/Cashier will have a dedicated E-Wallet that will be mainly used for Cash In
and Cash Out operations. In addition to that he will be able to make transfer to other
users.
Organization:
Organization user will have dedicated E-Wallet that will allow him to perform bulk
payments (like salary payments).

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2.6. REGISTRATION TO MOBILE MONEY SERVICE

Registration to the mobile money service will be done via dedicated web CRM by
Operator or its dealers.

2.7. CASH IN
In order to Cash In the customer will need to purchase a money card from
resellers/dealers and top up it to his E-Wallet using dedicated *CASH service.
The Cash In service flow is described in exhibit 2.8-1 below.
Exhibit 2.7-1: Cash In:

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2.8. CASH OUT

Cash Out operation can be done on two different levels. Customer will perform Cash
Out operation via Cashier/dealer and Cashier/Dealer via operator.
Customer - In order to perform Cash Out operation the customer will need to transfer
the requested amount to the Dealer/Reseller/Cashier using *CASH service. Once
cashier received the transfer he will pay the transferred amount to the customer
excluding commission that will apply on payment.
Cashier/Dealer - The payment to Cashiers will be done by Operator according to their
business model and agreements. Cashier will be able to exchange its balance for
Mobile money scratch cards or other products from Operator.

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Exhibit 2.8-1: Customer Cash Out:

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2.9. TRANSFER P2P

Phone to phone transfer will be available via USSD channel. This service allows
customers to make a money transfer between registered users. Commission can be
applied on this type of transactions.

Exhibit 2.9-1: Transfer P2P:

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2.10. SELL
Sell option is designed for merchant users on the platform. Merchant can initiate a
collect payment process via USSD *CASH service. This process will be used between
Merchant and registered user in order to collect payment for sold goods or services.
Exhibit 2.10-1: Sell:

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2.11. SALARY PAYMENT

This option will allow organizations to make salary payments to their employees
with a push of a button. Company will have corporate account with dedicated E-
Wallet, all employees will have operators’ accounts and E-Wallets as well. By using
Operators dedicated mobile money web interface employer will be able to execute
salary payments directly to employees’ mobile accounts. In addition every employer
will be able to view his payments history report.

3. REPORTS
Service usage and summary reports will be available in daily, weekly and monthly
resolution based on Operators business requirements (TBD).
List of example reports for operator:
• Money Transfer commission report
• Agent Head Office report
• Registration report
• General commission report
• Commission to Head Office report
• Airtime purchase report
• C2B report
• B2C report

List of example reports for regulator:

• Total deposit Value
• Total withdrawal value
• Total number of deposits
• Total number of withdrawals
• Number of agents
• Total commission on transactions
• Balance of trust accounts at the date of reporting
• Total number of fund transfers

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• Total value of fund transfers

• Average size of transactions
• Average number of transactions per day
• Total number of accounts opened

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ABOUT FTS
FTS provides billing, customer care, policy control, mobile money and payments
solutions that have greater flexibility and provide greater independence for
communications and content service providers, resulting in a dramatically lower
total cost of ownership (TCO). As the first billing company to provide policy
management, by analyzing every transaction from a business standpoint, FTS
offers a complete package of solutions and provide services to both growing and
major, established providers.

FTS deploys its full range of end-to-end and add-on billing, payments and policy
control services to customers worldwide and implements solutions in wireless,
wireline, cable, broadband, M2M/IoT, mobile money, payments and e-commerce,
cloud and content markets including multiple convergent billing platform
installations.

FTS deploys its BSS solutions in various models, including:

 End-to-end charging, billing & customer care

 Add-on billing and charging solutions for specific lines of business (Mobile
Money, M2M, MVNO, Cloud services etc.)

 Convergent charging

 MVNO/MVNE billing

 Payments and e-commerce solutions

 Policy control & charging

 Balance management & balance transfer

 Billing bureau services

Delivered on-premises or via cloud models, and running on a broad range of

hardware and on Linux to keep the cost per unit at a minimum.

By providing solutions and service to telecommunications providers globally,

FTS is helping to reduce the total cost of ownership of billing, policy control and
mobile payment solutions. Further information is available at http://www.fts-
soft.com/.

FTS MOBILE MONEY SOLUTION DESCRIPTION © FTS PROPRIETARY AND CONFIDENTIAL