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a2a interoperaBility makinG moBile money scHemes interoperat
7
concLUsIon
T his discussion paper presents a framework to evaluate a2a interoperability implementation options through industry organisa-
tion and collaboration.
A2A interoperability is likely to be positive
as presented in this paper, there is significant evidence from interoperable banking sector payment networks to suggest that a2a
interoperability between different mobile money schemes and between mobile money schemes and banks should offer positive network
effect benefits for all participants, especially in established mobile money markets.
How best to achieve A2A interoperability depends on local conditions
there are a number of implementation options covering the interconnection of both mobile money schemes and banks. these range
from bilateral agreements between parties to a single central processor using an existing national banking service (such as an acH)
adjusted to include mobile money (e-money) in its clearing and settlement operations.
as each implementation option for a2a interoperability is likely to position the mobile money industry in a slightly different way – in terms
of influence over impact on pricing, governance and operational procedures. – the choice of implementation option should be made based
on strategic considerations, in addition to technical considerations. Having a real-time and low-cost a2a implementation is possible, and
the purpose of this paper is to help the industry to identify the most efficient solution and governance structure to enable it.
Interoperability needs a collaborative approach
the most appropriate solution for one market is not necessarily the same for all markets. therefore, this document presents an assess-
ment approach that enables stakeholders to reduce the set of potential deployment options to a small number, which are most suitable
for their market conditions, for more detailed consideration. the assessment approach uses a simple matrix framework for scoring each
option against a set of relevant criteria, to describe what is known in the target market. this approach rapidly allows the most promising
options to be identified for further analysis, and helps explain why other options are not suitable for particular local market conditions.
as a2a interoperability requires collaboration between commercial companies, getting companies to work together successfully requires
effective organisation and getting collaborations to deliver requires effective leadership and governance. the first step towards suc-
cessful collaboration is for all stakeholders to agree to work together. one of the most effective ways to start this process is to form a
dedicated Working Group or task Force. this paper includes a template terms of reference for such collaboration, and puts forward an
initial set of activities to kick-start interoperability work.
Cost to customers need to be proportionate
While working towards a2a interoperability, it is important to keep in mind that any additional costs introduced for inter-scheme transfers
must be at a level suitable for the target market, especially if mobile money is to continue to spear-head financial services to low-income
and currently financially excluded segments of society. Further, incorrect cost structures have resulted in under-utilised payment schemes
in the banking sector and it is likely that the same situation would occur for mobile money. a key element of cost management will be the
choice of deployment option and implementation of functionality to reduce potential operational overheads when problems do occur.
35
7
concLUsIon
T his discussion paper presents a framework to evaluate a2a interoperability implementation options through industry organisa-
tion and collaboration.
A2A interoperability is likely to be positive
as presented in this paper, there is significant evidence from interoperable banking sector payment networks to suggest that a2a
interoperability between different mobile money schemes and between mobile money schemes and banks should offer positive network
effect benefits for all participants, especially in established mobile money markets.
How best to achieve A2A interoperability depends on local conditions
there are a number of implementation options covering the interconnection of both mobile money schemes and banks. these range
from bilateral agreements between parties to a single central processor using an existing national banking service (such as an acH)
adjusted to include mobile money (e-money) in its clearing and settlement operations.
as each implementation option for a2a interoperability is likely to position the mobile money industry in a slightly different way – in terms
of influence over impact on pricing, governance and operational procedures. – the choice of implementation option should be made based
on strategic considerations, in addition to technical considerations. Having a real-time and low-cost a2a implementation is possible, and
the purpose of this paper is to help the industry to identify the most efficient solution and governance structure to enable it.
Interoperability needs a collaborative approach
the most appropriate solution for one market is not necessarily the same for all markets. therefore, this document presents an assess-
ment approach that enables stakeholders to reduce the set of potential deployment options to a small number, which are most suitable
for their market conditions, for more detailed consideration. the assessment approach uses a simple matrix framework for scoring each
option against a set of relevant criteria, to describe what is known in the target market. this approach rapidly allows the most promising
options to be identified for further analysis, and helps explain why other options are not suitable for particular local market conditions.
as a2a interoperability requires collaboration between commercial companies, getting companies to work together successfully requires
effective organisation and getting collaborations to deliver requires effective leadership and governance. the first step towards suc-
cessful collaboration is for all stakeholders to agree to work together. one of the most effective ways to start this process is to form a
dedicated Working Group or task Force. this paper includes a template terms of reference for such collaboration, and puts forward an
initial set of activities to kick-start interoperability work.
Cost to customers need to be proportionate
While working towards a2a interoperability, it is important to keep in mind that any additional costs introduced for inter-scheme transfers
must be at a level suitable for the target market, especially if mobile money is to continue to spear-head financial services to low-income
and currently financially excluded segments of society. Further, incorrect cost structures have resulted in under-utilised payment schemes
in the banking sector and it is likely that the same situation would occur for mobile money. a key element of cost management will be the
choice of deployment option and implementation of functionality to reduce potential operational overheads when problems do occur.
35
