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a2a interoperaBility makinG moBile money scHemes interoperate
3.3
neutral processor
T he neutral processor approach envisages creating an entity that is jointly owned by the all participating mmos, operating a
single-point switch which routes traffic between the separate mobile money deployments and offers a single connection to
external banking partners.
this approach is illustrated below:
MMO A MMO B
BANKS
$ $
MMO C
Figure 2: Neutral Processor
STRENGTHS WEAKNESSES
scalable time consuming to incorporate processor joint venture
each mmo gains access to all external parties who connect to processor, and new settlement approach required – may have unknown risks
vice versa
may add additional transactions costs
control over feature enablement
new operational rules required
control over interface standards
time scales for agreement on technology and approach
transaction reversal requests may be harder, as there is no specific contract
between mmo and recipient’s bank
Table 2: Neutral Processor Strengths and Weaknesses
12
3.3
neutral processor
T he neutral processor approach envisages creating an entity that is jointly owned by the all participating mmos, operating a
single-point switch which routes traffic between the separate mobile money deployments and offers a single connection to
external banking partners.
this approach is illustrated below:
MMO A MMO B
BANKS
$ $
MMO C
Figure 2: Neutral Processor
STRENGTHS WEAKNESSES
scalable time consuming to incorporate processor joint venture
each mmo gains access to all external parties who connect to processor, and new settlement approach required – may have unknown risks
vice versa
may add additional transactions costs
control over feature enablement
new operational rules required
control over interface standards
time scales for agreement on technology and approach
transaction reversal requests may be harder, as there is no specific contract
between mmo and recipient’s bank
Table 2: Neutral Processor Strengths and Weaknesses
12
