Ranking: 2

Table 2: About Jazzcash

Improving financial inclusion in Pakistan

JazzCash is a Pakistani mobile wallet, mobile payments, and branchless banking services provider, launched in 2012. It has opted to provide convenient digital banking services in Pakistan, where the limited number of brick-and-mortar structures has hampered banking penetration by incumbent players. By taking advantage of the vast agent network and technology infrastructure of its parent mobile telecom company, JazzCash is able to achieve significant market penetration in the country.

Product Strategy: Supporting businesses through innovative solutions

With the industry at large emphasising value-added services and financial innovation, JazzCash continues to develop digital solutions and diverse products to meet the needs of both consumers and businesses. Facing stiff competition from incumbent banking players and mobile banking rivals, JazzCash aims to distinguish itself by providing customer service that is quicker and more reliable. According to the Financial Inclusion Insights Survey 2020 by Kantar and Karandaaz, JazzCash is ahead of its main competitor, EasyPaisa, in terms of the number of mobile money users.

“We identified a need for a one-stop digital solution in the SME sector, which still lacks the tools and resources to adopt digital transformation…By taking advantage of secure, real-time payments, these businesses will witness higher efficiencies and benefit from a thriving digital ecosystem.”

Erwan Gelebart
CEO, JazzCash

JazzCash has also identified SMEs and freelancers as a key market for its services. By adapting its advanced financial platform for corporate clients, JazzCash intends to reduce the obstacles businesses face and strengthen the payments ecosystem between merchants and consumers.

Overview of the product stack at JazzCash

There is concerted effort to make the retail and business banking as well as payment and travel features as comprehensive as possible. Insurance products mainly focus on health and accident insurance. JazzCash provides lending services via ReadyCash.

3 Key Product Innovations

1. ReadyCash

ReadyCash is a loan service that allows JazzCash Mobile Account customers to receive short-term instant loans of small denominations quickly. These loans will be credited to the customer’s Mobile Account immediately upon request. This process is done entirely on the user’s mobile device. All they have to do is dial *786#, without the need for any documentation.

Each loan matures in four weeks with the option to pay back early. Every customer can request for one loan at a time, for up to USD 63. As of 2021, this service is still in its pilot phase.

2. JazzCash Business App

JazzCash Business aims to integrate different business functions into one unified platform. It allows businesses to make payments efficiently without the need for bank branches. Users can send, manage, and track their payment requests and invoices, as well as edit and send reminders for delayed payments. Additionally, businesses can make refunds to their customers via the payment refund option.

The Business app can generate QR codes for specific amounts to create customisable digital invoices for customers. It also provides a variety of advanced business tools. These include:

• Allowing users to track their business performances on the go by monitoring their real-time transaction history and generating Account and Tax statements to their emails.
• Enabling users to manage their expenses by conducting salary disbursements and supplier payments.
• Allowing users to order, track and manage their JazzCash Business Debit Cards.

Users can also earn rewards by inviting their customers or other businesses to download the JazzCash app.

3. JazzCash – Payoneer Integration

Payoneer is a service that provides online money transfers and digital payment services. Additionally, the feature gives customers working capital.

Freelancers can create their Payoneer account through their JazzCash mobile account application or simply link their current Payoneer account with JazzCash. There is no need for bank branch visits or extensive documentation.

Funds from Payoneer get credited directly into the Freelancer’s Mobile JazzCash Account. They can then utilise the funds for online payments.

Table 2: Selected Partners

Recommendations

JazzCash faces its stiffest competition from fellow mobile wallet EasyPaisa. Like JazzCash, EasyPaisa has the backing of a major telecom operator (Telenor) and shares similar product and operating synergies. To distinguish itself from EasyPaisa, JazzCash should focus on the following strategies:

1. Maximising the reliability and speed of its services

Performance and accessibility are the main considerations in consumers’ choices between the two products. Therefore, JazzCash should constantly seek to improve operational efficiency. For example, it can pursue digital solutions to maximise the speed of transactions for users. In 2019, JazzCash reduced its loan processing time to under one hour by transforming more than 50% of the branch network to Digital (lending and account opening).

2. Improving customer support

In addition, JazzCash should also maintain its excellence in customer support, as it allows the company to rectify issues before they negatively affect consumer experience. Digital tools such as Digital Customer awareness screens and feedback acquiring tabs should be tools used to gain feedback from users speedily. At the same time, JazzCash should address complaints as quickly as possible.

3. Expanding its payments ecosystem

As of 2021, much of rural Pakistan remains unbanked, which represents a huge opportunity for JazzCash. To expand outreach in these areas, JazzCash should aim to increase consumers’ awareness of the financial products offered by the bank and encourage them to shift towards digital finance. This can be done through promotional and marketing campaigns as well as growing its partner portfolio, thereby giving JazzCash more merchants offering its services to consumers.

3.Exploring investment features

Wealth management is an area that is unexplored by both JazzCash and EasyPaisa. Moreover, there is currently limited access to investment products and financial education in Pakistan. Thus, making investment an accessible option for the average consumer via the JazzCash platform would promote financial inclusion and allow JazzCash to distinguish itself from its rivals.

In this regard, JazzCash should seek strategic partnerships with investment brokerages to apply its fintech expertise in the realm of investment. In 2021, JazzCash and KASB Securities, the country’s leading brokerage firm, agreed to promote retail investment through easing access to both investment products and stock market trading.

The new normal requires businesses to transition to a digital core and collaborate with digital-savvy counterparts to propel them in reaching previously untargeted or underserved segments.

What changes can you make in your field to enable such successes?

Endnotes

Google Play Store (n.d.). JazzCash Business – Track, Manage and Accept Payments.

Kantar IMRB, Karaandaz Pakistan, (2020). Financial Inclusion Insights Survey.

JazzCash, (n.d.). ReadyCash.

Mobilink Microfinance Bank Ltd, (2019, December 31). Group annual report.