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appenDiX a - assessment eXamples
an overall summary can be drawn from the above, as follows:
PArTNEr DIrECT COMMErCIAl
BIlATErAl NEUTrAl COMMErCIAl BANK TO CONNECT TO PrOCESSOr
AGrEEMENT PrOCESSOr PrOCESSOr NATIONAl NATIONAl FOr BANK
ACH ACH INTErFACE
central Bank
OvErAll Well suspect time aDDitional Questions settlement. Questions
oVer costs
costs may Be
to market Vs
oVer cost anD
ASSESSMENT unDerstooD BeneFit proHiBitiVe usaBility potential anD control
strateGic
option
Table 9: Market Example 1 Assessment Summary
in this example assessment, bilateral agreements between different mmos and individual banks could be considered to be most
appropriate. this is because the number of participant organisations is low, each having a relatively successful mobile money service,
the bank market is particularly concentrated in a relatively small number of banks and added cost for interoperable transaction can
be most effectively managed, since financial inclusion is a defined goal of regulations. this approach can be quick to deploy if agree-
ment is readily reached for the technical integrations required (a solution would not necessarily require additional technical vendors)
as there is no need to introduce a new legal entity which would increase commercial complexity or attempt to negotiate low-cost
commercial agreements with third party processors.
A.2.2
Market Example 2: Mature Inter-Bank Connectivity
unlike the market example above, in this example the banking sector is mature and electronic payments are more widely available and
accepted. there are a relatively small number of mobile money schemes, each run by a single operator (e.g. an mno), that have yet to
gain significant penetration in the market.
mARKET coNTExT: ASSESSmENT ExAmplE 2
mobilE moNEy SEcToR bANK pAymENTS SEcToR REGulATioN
• a small number of existing mobile money • competitive banking sector, with a number • regulatory requirements for interoperability
schemes, which do not yet have significant larger banks have relatively level market shares exist but do not specify a required
penetration; and a larger number of smaller banks; organisational model;
• single operator schemes, usually mnos; • relatively mature retail electronic payments; • the settlement institution is not prescribed;
• relatively successful schemes, with broadly • penetration of commercial payments • no explicit requirements for financial inclusion,
similar market shares; networks for retail services, (such as for although there is significant political will to
atms) includes all banks; address this.
• national acH exists, operating intra-day
clearing and settlement;
41
an overall summary can be drawn from the above, as follows:
PArTNEr DIrECT COMMErCIAl
BIlATErAl NEUTrAl COMMErCIAl BANK TO CONNECT TO PrOCESSOr
AGrEEMENT PrOCESSOr PrOCESSOr NATIONAl NATIONAl FOr BANK
ACH ACH INTErFACE
central Bank
OvErAll Well suspect time aDDitional Questions settlement. Questions
oVer costs
costs may Be
to market Vs
oVer cost anD
ASSESSMENT unDerstooD BeneFit proHiBitiVe usaBility potential anD control
strateGic
option
Table 9: Market Example 1 Assessment Summary
in this example assessment, bilateral agreements between different mmos and individual banks could be considered to be most
appropriate. this is because the number of participant organisations is low, each having a relatively successful mobile money service,
the bank market is particularly concentrated in a relatively small number of banks and added cost for interoperable transaction can
be most effectively managed, since financial inclusion is a defined goal of regulations. this approach can be quick to deploy if agree-
ment is readily reached for the technical integrations required (a solution would not necessarily require additional technical vendors)
as there is no need to introduce a new legal entity which would increase commercial complexity or attempt to negotiate low-cost
commercial agreements with third party processors.
A.2.2
Market Example 2: Mature Inter-Bank Connectivity
unlike the market example above, in this example the banking sector is mature and electronic payments are more widely available and
accepted. there are a relatively small number of mobile money schemes, each run by a single operator (e.g. an mno), that have yet to
gain significant penetration in the market.
mARKET coNTExT: ASSESSmENT ExAmplE 2
mobilE moNEy SEcToR bANK pAymENTS SEcToR REGulATioN
• a small number of existing mobile money • competitive banking sector, with a number • regulatory requirements for interoperability
schemes, which do not yet have significant larger banks have relatively level market shares exist but do not specify a required
penetration; and a larger number of smaller banks; organisational model;
• single operator schemes, usually mnos; • relatively mature retail electronic payments; • the settlement institution is not prescribed;
• relatively successful schemes, with broadly • penetration of commercial payments • no explicit requirements for financial inclusion,
similar market shares; networks for retail services, (such as for although there is significant political will to
atms) includes all banks; address this.
• national acH exists, operating intra-day
clearing and settlement;
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