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a2a interoperaBility makinG moBile money scHemes interoperate
2.1
What is meant by
A2A interoperability
T o date, each money mobile offering is being developed and deployed as a scheme in its own right – with its own platform,
operating rules and independent networks of agents and customers. as each mobile money scheme is operated independently,
typically, money transfers from one scheme cannot be made to another .
1
the ability to make a money transfer transaction from one scheme to another would signify schemes were interoperable. However, as
others have described , interoperability for mobile money can mean a number of different things; in addition to transaction interoperabil-
2
ity, it may include agent sharing and retail point of sale compatibility.
3
at its most basic therefore (and for the purposes of this paper), interoperability refers to account-to-account (a2a ) transfers between
customer accounts at different mobile money schemes and between accounts at mobile money schemes and accounts at banks. Here,
the expectation is that money transfers are between accounts owned mainly by individuals and small businesses.
In summary, the key functional requirements for A2A interoperability are the ability to:
• Directly transact between wallet accounts at different mmos;
• Directly transact between mobile money accounts and bank accounts;
• settle the funds for transactions across schemes and between schemes and banks;
• implement common risk management practices that preserve the integrity of the individual mobile money schemes.
naturally, there are a number of ways mobile money schemes can join together (and with banks) to interoperate for a2a transactions
– for example, with decentralised networks of schemes or through centralised services. an overview of the implementation options avail-
able to address these key requirements is presented in the body of this paper along with a framework for their assessment.
1. currently, this functionality is simulated by a ‘voucher’ transaction. When money is sent to a user outside of the mobile money scheme, a voucher code is created and sent to the recipient via sms. the value of the
voucher is stored on the originating platform and the value is required to be cashed-out in full at a cash-out location of the originating scheme. therefore, it does not involve any communication between different
mobile money schemes.
2. interoperability in electronic payments: lessons and opportunities, carol coye Benson, scott loftesness, 30 may 2013, http://www.cgap.org/publications/interoperability-electronic-payments-lessons-and-opportunities
3. account-to-account electronic money transfers: recent Developments in the united states, oz shy, october 12, 2011, consumer payments research center, Federal reserve Bank of Boston,
http://www.bostonfed.org/economic/ppdp/2011/ppdp1110.pdf
4
2.1
What is meant by
A2A interoperability
T o date, each money mobile offering is being developed and deployed as a scheme in its own right – with its own platform,
operating rules and independent networks of agents and customers. as each mobile money scheme is operated independently,
typically, money transfers from one scheme cannot be made to another .
1
the ability to make a money transfer transaction from one scheme to another would signify schemes were interoperable. However, as
others have described , interoperability for mobile money can mean a number of different things; in addition to transaction interoperabil-
2
ity, it may include agent sharing and retail point of sale compatibility.
3
at its most basic therefore (and for the purposes of this paper), interoperability refers to account-to-account (a2a ) transfers between
customer accounts at different mobile money schemes and between accounts at mobile money schemes and accounts at banks. Here,
the expectation is that money transfers are between accounts owned mainly by individuals and small businesses.
In summary, the key functional requirements for A2A interoperability are the ability to:
• Directly transact between wallet accounts at different mmos;
• Directly transact between mobile money accounts and bank accounts;
• settle the funds for transactions across schemes and between schemes and banks;
• implement common risk management practices that preserve the integrity of the individual mobile money schemes.
naturally, there are a number of ways mobile money schemes can join together (and with banks) to interoperate for a2a transactions
– for example, with decentralised networks of schemes or through centralised services. an overview of the implementation options avail-
able to address these key requirements is presented in the body of this paper along with a framework for their assessment.
1. currently, this functionality is simulated by a ‘voucher’ transaction. When money is sent to a user outside of the mobile money scheme, a voucher code is created and sent to the recipient via sms. the value of the
voucher is stored on the originating platform and the value is required to be cashed-out in full at a cash-out location of the originating scheme. therefore, it does not involve any communication between different
mobile money schemes.
2. interoperability in electronic payments: lessons and opportunities, carol coye Benson, scott loftesness, 30 may 2013, http://www.cgap.org/publications/interoperability-electronic-payments-lessons-and-opportunities
3. account-to-account electronic money transfers: recent Developments in the united states, oz shy, october 12, 2011, consumer payments research center, Federal reserve Bank of Boston,
http://www.bostonfed.org/economic/ppdp/2011/ppdp1110.pdf
4
