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a2a interoperaBility makinG moBile money scHemes interoperate
3.4
commercial processor
his approach aims to reduce time to market by contracting a commercial entity to manage the routing of transactions and to
handle clearing and settlements across multiple mmo scheme providers and financial institutions.
Tthis approach is illustrated below:
MMO A MMO B
BANKS
$ $
MMO C
Figure 3: Commercial Processor
STRENGTHS WEAKNESSES
scalable new operational rules required
each mmo gains access to all external parties who connect to processor, unknown additional transactions costs added by commercial third party
and vice versa
new settlement approach required – two stage settlement has unknown risks
may be faster to deploy than neutral processor
loss of control for mmos (on price, connections, innovations etc.)
mature systems may improve reliability and contribute with
established processes transaction reversal requests are much harder, no specific contract between
mmo and recipient’s Bank
Table 3: Commercial Processor Strengths and Weaknesses
14
3.4
commercial processor
his approach aims to reduce time to market by contracting a commercial entity to manage the routing of transactions and to
handle clearing and settlements across multiple mmo scheme providers and financial institutions.
Tthis approach is illustrated below:
MMO A MMO B
BANKS
$ $
MMO C
Figure 3: Commercial Processor
STRENGTHS WEAKNESSES
scalable new operational rules required
each mmo gains access to all external parties who connect to processor, unknown additional transactions costs added by commercial third party
and vice versa
new settlement approach required – two stage settlement has unknown risks
may be faster to deploy than neutral processor
loss of control for mmos (on price, connections, innovations etc.)
mature systems may improve reliability and contribute with
established processes transaction reversal requests are much harder, no specific contract between
mmo and recipient’s Bank
Table 3: Commercial Processor Strengths and Weaknesses
14
