Easypaisa: Providing Financial Services to the Masses

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

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.