Easypaisa: Providing Financial Services to the Masses

Published 26 Sep 2016
Reference 6199
Topic Strategy
Region Asia
Summary

By late 2014, Easypaisa, a mobile financial service (MFS) that enabled financial transactions through a mobile phone, had 54% of the MFS market, and was a leader in both over-the-counter (57%) and mobile accounts (75%). However, its OTC market share had dropped precipitously from 88% in the first quarter of 2013 to 62% by the end of 2014. Moreover, Easypaisa mobile accounts accounted for only 15% of its total MFS transactions, well below expectations – the anticipated migration of OTC customers was simply not happening. The Easypaisa team had three options: (1) Continue to focus on migrating OTC customers to mobile accounts (2) Aim for a different target market (3) Focus exclusively on OTC

Teaching objectives

This case can be taught in MBA, EMBA or Executive Education sessions on strategy development and innovation. It highlights (i) how a company can take advantage of its core competency and exploit growth opportunities to increase profitability. (ii) how to identify a strategic sweet spot and cultivate a market to create value for customers and company through value innovation, in the context of Blue Ocean Strategy. (iii) how innovative marketing strategies can help in creating the eco-system needed for sustainable competitive advantage and a leadership position in a competitive landscape.

Keywords
  • Strategy
  • BOP
  • Sustainability
  • Financial services
  • Marketing strategy
  • BOS
  • Pakistan
  • Poor consumers
  • Emerging markets
  • Branding
  • Mobile money
  • Money transfer
  • Mobile financial services
  • Digital payments
  • Q11617