EasyPaisa: Seizing the white space and business model innovation

Abstract

Easypaisa is a diversification case study written about two very different organizations, a Telco and Microfinance Bank, and how they merged to create a new business. This new business was providing MobileFinancial Services. Both Telenor (a Telco) and Tameer Bank (Microfinance bank) saw a business opportunity in branchless banking (business white space). They were committed to make this acquisition successful, where Telenor bought over 51% shares of Tameer Bank. However, as per regulations, the branchless banking model is to be governed under a bank-led model. Therefore, the face of Easypaisa has always been Tameer Bank which is expected to manage all the regulatory issues and compliance issues and back end processes while Telenor uses its vast distribution network and marketing skills to create a winning business model. The case provides opportunities for students to explore Easypaisa business model generation and how they capture the white space beyond existing market and business model. Case also looks future challenges from Telenor and for Tameer Bank point of views. The success of Easypaisa brings new opportunities and complexities for Telenor and for Tameer Bank top management. [ABSTRACT FROM AUTHOR]