Munich, March 25, 2013 – Giesecke & Devrient (G&D) is to provide PayPal and Brazilian network operator Vivo with a mobile payment solution that allows their customers with prepaid accounts to top up their credit directly on their cellphone using PayPal. G&D will also deliver the necessary payment solution, the SmartTrust Mobile Transaction Gateway, to ensure that the transactions are executed securely.

The easy-to-use service gives customers direct access to phone credit, without having to buy a recharge card from a point of sale during normal opening hours. Based on USSD technology and compatible with all types of cellphone, the solution does not require users to download any other applications. For PayPal it is an opportunity to leverage on the mobile channel. Users can set up a PayPal account for the services directly on their mobile phone, and modify the account details to add or remove linked credit-card information whenever necessary.

The backend servers for this mobile payment solution are hosted and managed by Giesecke & Devrient in a secure data-processing center. The Mobile Transaction Gateway (MTG) via which all top-up and other mobile transactions are processed is based on the SmartTrust DP framework.

About Giesecke & Devrient
Giesecke & Devrient (G&D) is a leading international technology provider headquartered in Munich, Germany. Founded in 1852, the Group has a workforce of around 10,500 employees and generated sales exceeding EUR 1.64 billion in fiscal 2011. 58 subsidiaries and joint ventures in 32 countries ensure customer proximity worldwide.

Over 150 countries place their trust in G&D solutions when producing and processing their banknotes. The company primarily supplies central and commercial banks, cash-in-transit companies, and security printers with innovative technologies that render the cash cycle efficient and secure. G&D bank and SIM cards are used all over the world to make payments and telephone calls. As an end-to-end provider of smartcard and mobile security solutions, the Group develops and distributes hardware, software, and services to a client base that includes banks, mobile network operators, transportation companies, business enterprises, and original equipment manufacturers (OEMs). Governments and public authorities turn to G&D for passport, ID card, and border control systems, ensuring reliable identity verification right around the globe. For more information, please visit: www.gi-de.com

Contact:stefan.waldenmaier@gi-de.com
Stefan Waldenmaier | Press Officer

stefan.waldenmaier@gi-de.com
Phone +49 89 4119-2985
Fax +49 89 4119-1208

Mobile phone service is often the first method of telecommunications that children use around the world; whereas, many of the generation X and earlier still look for a fixed line pay phone when they need to make a phone call way from the home or office. In nations, such as Pakistan, Kenya, and Malaysia, the cell phone is the foundation of business for home and office … even banking and payment for goods.

Q1. How mobile is the Pakistani population? What proportion of the population have a mobile phone? How does this compare to fixed line telephony? Please include a source for the stats.

Answer from Ayesha Ambreen, a junior telecommunications engineer in Pakistan: Quite Mobile. As of January 2009, Telecom was one of the fastest growing industries in Pakistan (report reference below) and was growing at a pace of 170% per year! Those of us physically here in Pakistan can see the impact of this marvelous growth in the hands of the people in Pakistan. Mobile is everywhere, even where people are lacking some basic necessities of life for e.g. food, proper medication, and clothing.

The overall population of Pakistan is 170 Million plus, and according to a recent report released by Telecom authorities in Pakistan: “Pakistan ended with 97.3 Million mobile phone subscribers in April 2010” – more than half of the population! (57.3% to be accurate as per these researches.) One of every two people have a mobile phone in Pakistan. (Isn’t it amazing? With poverty equals to 40% and inflation rate reported at 12.69%.)

I couldn’t find any statistics related to Mobile vs. Fixed Line Telephony; however, in my opinion, they are no match. Fixed line telephony is quite common, but it still lacks penetration below the poverty line, the area where most of Pakistanis live. but this is also the area where mobile rules because of low hassle and pay as you go cost (affordability) or cheap calling rates.

http://www.tradingeconomics.com/pakistan/mobile-and-fixed-line-telephone-subscribers-per-100-people-wb-data.html
http://www.pafkiet.edu.pk/LinkClick.aspx?fileticket=u7RC2hLlgQ0%3D&tabid=515&mid=1805
http://humayun.pk/mobile-subscribers-in-pakistan-may-rise-to-134-8m-by-2014.html

Answer from Mirza Zaim Baig, a telecommunications researcher:
According to the latest figures released by Pakistan Telecommunication Authority (PTA), Mobile tele-density reached to 59.8percent in May, 2010. Trends in tele-density are depicting a slower pace due to ‘maturity of market’ where operators have now adopted a retention policy instead of making efforts for expansion of subscribers. A total of 98 million cellular subscribers have been recorded in May, 2010.

The share of market, as per PTA, Mobilink stayed at top with 32.64 percent of subscribers, while Telenor at 2nd position with 24.14 percent of mobile users, Ufone with 19.55 percent, 16.98 percent for Warid and 6.69 percent are Zong users. According to the data, in the month of May, mobile sector rose with a growth rate of 0.72 percent in comparison with the figures of last month (April, 2010).

For growth pattern with in mobile operators, statistics are as, Warid is fastest growing operator with growth rate of 1.62 percent, 1.18 percent growth recorded for Ufone, followed by 0.85 percent for Telenor. Zong is the only operator which has negative growth of -3.12 percent.

For fixed line PTA released the following figures for fixed line telephony.
PTCL 3,268,642
NTC 104,819
Brain Limited 11,267
Worldcall 9,874
Union Communication 3,700
Nayatel 19,500

Whereas annual teledensity of fixed line in Pakistan is 2.16 recorded in 2010
Source: http://www.field-tab.com.pk/pakistan%E2%80%99s-mobile-tele-density-growth-overview.html
Source: Pakistan Telecommunication Authority (PTA), Telecom Indicators: Mobile Cellular Services, 2010

Q2. What are the characteristics of the Pakistani mobile market? What types of device are most commonly used? From which OEMs? Do people tend to be on pre-paid or post-paid?

Answer from Ayesha Ambreen, a junior telecommunications engineer in Pakistan: The characteristics that influence Pakistani Mobile market are:
- Cost or calling rates
- SMS – one of the cheapest way of communication

Devices that are commonly used, include low-end GSM mobile phones with basic functionality. Smart phones, 3G phones, Androids, and Blackberries are not mainstream yet. They are in use among the corporate sector. Nokia is the most popular brand name in Pakistan. People are more inclined towards pre-paid connections, again because of the hassle-free payments and affordability point of view.

FYI – Given the latest quarter numbers, the forecast predicts that Ufone will have 25.8 million, Telenor 29 million, and Warid 25.3 million mobile subscribers by the end of 2014.

Answer from Mirza Zaim Baig, a telecommunications researcher and consultant with a plethora of international business experience:

Q3. What distinguishes mobile in Pakistan from a) the rest of Asia? b) the rest of Europe? c) other leading mobile markets world wide? What makes Pakistan a must-watch, must-participate-in market today and in the future? What can the rest of the world learn from what’s happening today in Pakistan?

Answer from Ayesha Ambreen at, a junior telecommunications engineer in Pakistan: The growth! The primary factor that distinguishes mobile in Pakistan from rest of Asia, Europe, or other leading mobile markets world wide is the growth rate or its rapid penetration.

China is currently the world’s largest mobile communications market; however, it took China a considerable amount of time to accelerate and excel in telecommunication market. In 1960s and 70s the telecom availability was very poor in China before the mid-90s. The very first mobile call was made in 1987 in China, and they didn’t start to see real growth until 1997 when the GSM users exceeded analogue phone users – 10 years! And in 2001 China became the world’s largest mobile market in terms of subscribers.

The message we convey is, ‘Pakistan has potential, potential for acceptance to technology, people appreciate the use of gadgets and appliances to save time, money, and resource utilization. They understand technology and are ready to adopt them as long as they are affordable. Like other communities, people are not afraid of switching from traditional communication methods; they are willing to participate in growth and have a large early adopter group. And beside all the disadvantaged conditions here, there is still hope and realization for technological advancement.’

Q4. How do they use their mobile devices? How many a) access the mobile Web? b) text c) engage with companies via mobile e.g. mobile advertising d) download mobile apps, e) do m-commerce, e) m-banking, f) m-ticketing etc? Please include sources for any stats.

Answer from Ayesha Ambreen, a junior telecommunications engineer in Pakistan:
The usage is just limited to text messages and calls by an average user. Due to the cost factor, and lack of local applications, Web access or application access via mobile is quite limited in Pakistan.

Mobile Web and Mobile advertising are observing an emerging trend in Pakistan, therefore no stats reported as yet that I can locate.

The interview with Nokia’s Marketing Head, Haseeb Ihtisham, will give you an idea how Mobile market is still evolving and shaping in Pakistan at http://telecompk.net/2010/10/31/interview-haseeb-ihtisham-marketing-head-nokia-pakistan/.

In the Dubai, United Emirates area? Participate in Mobile Value Added Services in Growth Markets Conference produced by Neo-Edge, December 14-15, 2010.