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July 27, 2015 • Issue 15:07:02

International acquiring:

opportunities abound, tenacity required

Now the largest mobile money network in India, Money-
on-Mobile is available through approximately 265,000
retail locations, and it is adding about 5,000 new locations
monthly. In May the network processed the equivalent of
$38.1 million in payment transactions, an increase of 20.5
percent over its April totals. "Our continued execution
of Money-on-Mobile's growth strategy is expanding our
footprint across India," Montgomery said.

India, China, Brazil poised for growth
But Calpian won't be placing card terminals with merchants
in India. "India is not a credit country," Montgomery
said. At least 40 percent of adults in India are unbanked,
according to the Reserve Bank of India; in rural areas it's
more like 60 percent. "On the other hand, the middle class
is growing," Montgomery said, which should ultimately
nternationally, opportunities abound for payment spur growth in credit card usage.
companies. For some, going international begins
as an e-commerce play. Others seek to establish a Tristan Hugo-Webb, Associate Director of the global
I physical presence in overseas markets. The winners payments advisory service at Mercator Advisory Group
are those that take the time to understand the dynamics of provides a similar assessment in a recent research note,
individual markets. referring to the hundreds of millions of unbanked in the
country as "the biggest barrier" payment companies face
"There are opportunities everywhere you look," said in India. "Unless the industry and government tackle this
Harold Montgomery, Chief Executive Officer of Calpian issue," Hugo-Webb said, "the country will continue to lag
Inc., a registered ISO based in Dallas. Opportunities, can behind other leading developing markets like Brazil and
differ significantly from market to market, however. "It China."
takes money, time and expertise to address many of these
markets. They're not as straightforward," Montgomery
said.

Montgomery speaks from experience. Calpian set out to Contributed articles inside by:
stake a claim in the India market in 2002, with Money-on-
Mobile, a prepaid mobile payment solution that consumers James Huber ..........................................................................................29
in India use to make POS and person-to-person payments
using the SMS text functionality on mobile devices. Mobile Jefffrey I. Shavitz ..................................................................................... 4
phones are hugely popular in India. The nation is home Gary Glover .............................................................................................50
to over 1 billion mobile phones, most of which are basic Nancy Drexler ........................................................................................52
(not smart) phones, Montgomery noted. Yet very few have
bank accounts, hence the demand for prepaid. TOC on page 3

Continued on page 38